We asked Daily Dirt readers last week for some of their favorite real estate adages.
David Breger couldn’t pick just one, so he sent nine:
“No risk, no reward.”
“The best deal is the one at the table.”
“Never make a deal on Friday.”
“Don’t buy a building too far to walk to on Shabbos.”
“If you start as a lender, you’ll end up as an operator.”
“Real estate is about leverage.”
“Loves the bricks; hates the tenants.”
“Stabilization isn’t a ceiling; it’s a floor.”
“Don’t get a nose job.” (to a successful buyer)
Breger added, “I know a lot of Sol-Goldmanisms that don’t read as real estate specific:
‘I could lose my shirt,’ and, ‘You worry about the wrong things. Worry about me.’”
As far as I’m concerned, any Sol Goldman sayings count as real estate-specific. I wonder if the late property magnate had one for the heirs squabbling over control of his empire.
Getting back to the quips and quotes readers sent in, Harvey Krasner, chair of the real estate law group at Warshaw Burstein, submitted, “Don’t fall in love with the bricks.”
That prompted me to look back at Breger’s “loves the bricks, hates the tenants.” Reflecting on these two sayings, it occurred to me that some people are in real estate not so much for the money, or for the people, but for the properties.
They grow attached to them, as one would a faithful but aging dog — even if he just can’t pull the sled anymore and is slowing down the rest of the team.
Nostalgia can be a dangerous thing, as Krasner’s adage suggests. It is sometimes necessary to let go of a property to avoid being dragged down by it.
I have to think that many owners of rent-stabilized buildings are wrestling with this issue. Buildings that have been in their families for years, even decades, are no longer producing enough profit to justify the effort of operating them.
Even worse, the buildings are losing money. Which is obviously unsustainable. The image of a chicken racing around with its head cut off came to mind.
That reminds me of one of my favorite adages from economics, coined by Herb Stein: “If something cannot go on forever, it will stop.”
I will conclude with a submission from landlord-tenant attorney and rent-stabilization expert Sherwin Belkin. No doubt reflecting on Zohran Mamdani’s victory in the Democratic primary for mayor, Belkin wrote, “Lately, my favorite real estate adage is ‘Drink heavily.’”
In his world, it helps to have a sense of humor.
What we’re thinking about: A PR person pitched me a story about President Donald Trump’s 50 percent tariff on imported copper, allegedly starting Aug. 1.
“It has already caused panic in the commercial real estate market, as buildings depend on copper for electrical wiring, HVAC, plumbing, and other infrastructural components,” she wrote. “We could soon see real estate prices skyrocket as a result.”
Talk of “panic” and “skyrocketing” prices is surely an exaggeration, but what effect would the tariff have on your business? Send your thoughts to eengquist@therealdeal.com.
A thing we’ve learned: Pat Ralph, a former commercial real estate reporter for The Real Deal, was recently a contestant on “Wheel of Fortune.” You can watch a clip of his appearance here. Thanks to my colleague Kathryn Brenzel for this discovery.
Elsewhere…
Restaurateur Dean Poll, owner of Gallagher’s Steakhouse in Manhattan and a second one in Boca Raton, also co-owns two fast-casual restaurants in Farmingdale and Westbury, Long Island.
They were part of the chain PDQ, for People Dedicated to Quality, but the acronym was confusing to customers. “They didn’t know if it was a hair salon or a luggage store,” Poll told Newsday. (I would have assumed it meant Pretty Darn Quick.)
Poll and business partner Tom Fanning approached PDQ co-founder Bob Basham to end their franchise deal. They have rebranded the two restaurants, which are now wholly owned, Chick & Tender.
Closing time
Residential: The top residential deal recorded Thursday was $21.25 million for a 4,492-square-foot, sponsor-sale condominium unit at 111 West 57th Street on Billionaires’ Row. Nikki Field, Ben Pofcher, Jeanne Bucknam and Emma Burakovsky of Sotheby’s International Realty had the listing.
Commercial: The top commercial deal recorded was $16 million for a 6,961-square-foot auto repair shop at 100 Division Place in East Williamsburg. Property records show the buyer also owns 20 Division Place.
New to the Market: The highest price for a residential property hitting the market was $8 million for a pre-war co-op unit at 101 Central Park West in Lincoln Square. Ann Cutbill Lenane of Douglas Elliman has the listing.
Breaking Ground: The largest new building application filed was for a proposed 26,223-square-foot, four-story community facility at 1566 61st Street in Borough Park. Nikolai Katz filed the permit on behalf of High Priority Builders.
— Matthew Elo
