The Promote Podcast Sonder's Mercy Killing and the Mooch's OZ Misadventure
Nov 19, 2025
Explore the troubling landscape of midsize multifamily REITs as many opt for privatization or liquidation. Dive into Marriott's shocking dissolution of its partnership with Sonder, reflecting on the rise and fall of this proptech company. Witness a riveting discussion on the Mooch's Opportunity Zone fund, mired in fundraising failures. From valuation struggles in New York's office REITs to the operational challenges faced by hotels, this conversation offers crucial insights into the current state of real estate and proptech.
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Power Consolidation At Big Firms
- 'Blackstone cubs' often face internal power consolidation where only one senior leader ultimately prevails in top roles.
- High performers at mega firms frequently exit when leadership structures compress or consolidate.
Why Mid‑Size REITs Are Choosing To Go Private
- Public midsize multifamily REITs face a structural disadvantage versus private buyers due to higher G&A and lower leverage flexibility.
- Taking these REITs private often makes sense when shares trade below NAV because private buyers can eliminate corporate overhead and restructure assets.
Sell When Trading Below NAV
- If a REIT trades below NAV, consider selling to private buyers to capture value and eliminate public G&A drag.
- Use private capital to restructure, dispose, or right‑size portfolios away from public market pressures.