A Reflection on Our Recent Webinar

By Robert Lopez, Associate Portfolio Manager at HoyleCohen

In a recent webinar HoyleCohen Associate Portfolio Manager Robert Lopez interviewed Gregg Winter, David Heiden and several other members of the Alternative Opportunities Fund, LP team (“Alt-Opp” or “The Fund”). The Fund Managers provided their insight and expertise on the current challenges facing New York multifamily real estate, including the consequences of the 2019 and 2020 New York rent laws, the New York eviction moratorium, the pandemic’s impact on the Fund’s value-add strategy, and the most recent valuation update.

The lack of clear warning signals and ultimate surprise (and subsequent maneuvering) in the real estate industry that has resulted from 2019 rent laws enacted by the New York State legislature was discussed at length. The result of this legislation is a marked decrease in capital improvement projects. Over time, it’s likely that tenants will request building improvements, which may result in an evolution of policy, but these changes could take years to come about. These issues, compounded by the effects of the pandemic, have resulted in thoughtful re-strategizing, reassessment of value and longer timetables for the sale of the New York based properties.

As a measure of good faith in weathering the storm, the Fund Managers will be waiving both accrued and future management fees. They additionally discussed efforts to mitigate operating expenses while they wait for the right time to place the New York portfolio properties on the market, which would likely be after the pandemic when there is increased real estate transaction activity (i.e. price discovery) and clarity.

It is worthy to note that Alt-Opp holds another property in Boca Raton, FL which is not affected by New York legislation, is situated in an opportunistic market and is doing well.

The environment that has developed since the Fund’s launch in 2017 has been challenging. We’ll continue monitoring and will provide additional opportunities to connect with the Fund Managers along the way.

For a full recording of the discussion please click here or on the play button above.

The information and data shared here is for illustrative and informational purposes only and nothing herein should be interpreted as investment advice. It should not be assumed that future performance of any specific investment or investment strategy will be profitable. All information contained herein is accurate to the best of our knowledge and is based on our reliance on materials provided directly by the investment manager. All investments carry the risk of loss, including the permanent loss of principal. Past performance is not a guarantee of future results.

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Gregg Winter:  Founder & Managing Partner, W Financial

Gregg Winter founded W Financial in 2003, having spent the prior 14 years syndicating individual mortgage loans among groups of private investors. He is also the owner of Winter & Company, a commercial mortgage advisory firm founded in 1989. With over 29 years of real estate advisory and lending experience, Gregg is recognized as a leading lender and commercial debt and equity advisor in New York. Prior to launching Winter & Company and W Financial, Mr. Winter had also served as a principal of W&W Associates, Inc., a family-owned New York mortgage investment business established in 1963 by his father, Jack Winter. Mr. Winter is a member of the Finance Committee of the Real Estate Board of New York, is a member of the Real Estate Lenders Association, and is a New York State Licensed Real Estate Broker. He graduated magna cum laude from Long Island University.

Robert Lopez, MSF, CAIA:  Associate Portfolio Manager, HoyleCohen

Robert Lopez serves as an Associate Portfolio Manager in HoyleCohen’s Investment Department. Robert is an active member of the firm’s Investment Committee often leading meetings and investment discussions, and plays an integral role in the future growth and development of investment management strategies of HC. Robert also assists in diligence reviews, core model research and drafting investment related collateral and client communications, as well as maintaining internal records. Robert’s role also sees him working closely with Advisory teams to provide portfolio management recommendations.

Robert holds a Bachelor’s from the University of California Los Angeles, a Master’s from Northeastern University and a Chartered Alternative Investment Analyst (CAIA) designation. Active in the community, Robert serves on the board as Treasurer of the UCLA-SD Alumni Network.