Lasting Relationships Pay Off, Says Sam Sidhu of Megalith Capital Management

Realty can be a tough profession to excel in if market analysis is not your thing. At Bisnow’s third annual ‘Residence of the Future’ event held recently, key realty personalities, including Sam Sidhu of Megalith Capital Management, shared what works and what doesn’t to get your realty bearings just right.

1.    Bull Markets Won’t Last Forever: “You have to assume the market’s as good as it’s going to get,” says HFZ Capital founder Ziel Feldman. His advice to young developers—no matter how juicy the market is looking, do not have price appreciation dictate your scheme of things.  While Manhattan realty is holding strong at the moment, Ziel feels some developers have gone overboard with their pricing projections for nearby neighbourhoods. 

2.    Be in step with technology: Development is a long game that can be easily outpaced by technology, says Gale International VP Stan Gale Jr.  There’s no point of a project rendered obsolete in the face of technological advances. Think of tech-driven amenities in a more ‘plug-and-play’ manner, like an iPhone that downloads apps as soon as they are rolled out. Contemporary markets are technology-driven, so should be your projects, says Gale.

3.     Don’t Shy off From Public Infrastructure Investments: Aging infrastructure bears down on reliability of services to new buildings, says AFK Group partner Mark Richter, who believes investing in public infrastructure and transit systems is the way forward to smart development. Greenland’s Pacific Park in Brooklyn, for example,  will have an eight-acre park with 24/7 public access and will reconnect the cut-off parts of the borough.

4.     Lasting Relationships over Short-Term Results: Recalling his early days, Slate Property Group principal David Schwartz says he had to offer several lunches to his lenders on his first development project to get them come down Brooklyn and those meetings laid the foundation of long, lasting relationships that have helped him get subsequent projects done.

Long-term relationships far outweigh short-term benefits and that’s where the focus should be on, concurs Sam Sidhu, CEO, Megalith Capital Management. “People tend to be very short-sighted on trying to get the best deal,” he says, as they look for cheap debt or raise equity. “That’s not always the right move to build a long-term sustainable platform”, he says. 

Founded in 2009 by Samveer Sidhu in collaboration with Bhanu Choudhrie, Executive Director, C&C Alpha Group, Megalith Capital Management is redefining investments in NYC with its integrated platform that specializes in the acquisition, repositioning, development and management of residential, commercial and mixed-use properties in the area.