077: What's Happening With NYC Commercial Real Estate in the Post COVID World and the Upcoming Opportunities in the Distressed Commercial Debt

Big Mike Fund Podcast

On this episode of the Big Mike Fund, I’m happy to welcome back Eric Goodman. Full disclosure, we invested with Eric from a couple of our funds—from Tempo Opportunity and Tempo Growth into Goodman Capital Fund too. We love working with Eric. He's a brilliant and intelligent guy and is a managing partner at Goodman Capital LLC.

Today we’re talking about investments in the post-COVID world, specifically in New York. We go over interesting opportunities that have arisen because of COVID, risk assets, as well as glance at Eric’s crystal ball as he gives his predictions for future investment opportunities. Eric also talks about the effects of the CARES Act.

Minute Markers:

00:20 - Hello and Welcome

01:45 - New York and investments during and post-COVID

07:11 - Difference between investments and risk assets (at risk of financial default)

13:50 - Eric’s crystal ball (his predictions for investment opportunities and his investments)

21:30 - Interesting opportunities because of the effects of COVID

25:37 - What’s happening at Goodman Capital LLC

28:15 - Reaching out to Eric

29:25 - Thank you for listening to the Big Mike Fund Podcast

Quotes:

“What you don't hear as much about is a lot of the big tech moving into the city—Amazon, Facebook, Google, Apple, and all those big players. You look at just last month, Facebook took over the former US Post Office. A lot of 730,000 square feet. They took over the Farley Post Office. They now occupy over 2 million square feet.” - Eric Goodman

“These periods of market uncertainty generally create limited periods of limited access of capital for two types of end-users. There are borrowers who have approaching loan maturities and they're in need of a refi, but then don't forget the other side of the coin.” - Eric Goodman

“But there's good news and there's a silver lining to the story. That is, under the CARES Act, the TDR and non-accrual exemption lasts only until the earlier of 12/31 of this year, or 60 days after the designation of COVID is no longer a national emergency.” - Eric Goodman

“There are many tax favorable treatments for leasing up and not executing a condo plan and providing that our loan basis is at the right investment's value threshold. That can be a very attractive investment to own as a rental refi and hold until the market turns.” - Eric Goodman

Resources:

Eric Goodman email: [e-mail]

Goodman Capital LLC