The Promote Podcast How to De-Risk a Megadeal: Related's Hudson Yards Masterclass
Jul 30, 2025
Discover the secrets behind Related Companies' ambitious Hudson Yards project, a $25 billion megadeal. Learn how Steve Ross transformed financial setbacks into strategic advantages. The hosts explore unique financing methods, from unconventional debt markets to condominium sales, that minimize risk. They discuss navigating complex political landscapes and maintaining community support, while emphasizing flexible ownership over fund structures. Insights into future aspirations and ongoing challenges add depth to this masterclass in real estate development.
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Build A Durable Balance Sheet
- Steve Ross built Related into a durable balance-sheet business rather than a short-lived fund model.
- That balance sheet lets Related fund long-duration masterplans and weather cycles while monetizing via partners and fees.
Near-Death Shaped His Strategy
- Ross nearly went bankrupt in the early 1990s and was rescued by family and partners.
- That near-death shaped his focus on stability and raising equity when available.
Raise Equity Proactively
- Raise equity when capital is available, not when you desperately need it.
- Use that equity to shore up the balance sheet so you can take larger, safer swings later.
