The Promote Podcast Fathers, Sons & Fast Fashion Tax Shields
Oct 15, 2025
Exploring the complexities of New York's office-to-residential conversions, hosts dive into the financial viability amidst current distress signals. They discuss how Amancio Ortega's purchases redefine market pricing, impacting various sectors. The conversation takes a sensational turn with the story of David Bren, examining his controversial fundraising and the challenges of leveraging family credibility in real estate. Insights on how tax incentives affect investment incentives add another layer to this intriguing discussion.
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Conversions Attract Capital But Still Fail
- Office-to-residential conversions attract huge private-credit liquidity but also concentrated distress in some projects.
- Successful leasing doesn't guarantee debt coverage if units or cap stacks are overlevered.
Tax Mechanics Drive Conversion Partnerships
- Long-held office owners can avoid immediate tax events by contributing assets into conversion JVs and reset basis via heavy CapEx.
- That tax mechanic helps explain why old families partner with conversion specialists.
20 Broad's Equity Collapse
- 20 Broad converted to 533 rentals but equity was wiped and the mezz lender took control.
- Nathan Berman said about the lender, “I've put it out of my head.”