Question & Answer with Kinsey of Kinsey Capital LLC

The NYREJ recently sat down with James Kinsey of Kinsey Capital for a question and answer session. Q: Can you tell me a little bit about your new firm, Kinsey Capital? A: I formed Kinsey Capital just last year, but it is really an extension of the work I've been doing with real estate owners and investors in the New York metropolitan area over the past 10 years. Kinsey Capital provides investment sales services to buyers and sellers of commercial real estate in the New York metropolitan region. We also provide real estate financing advisory services to buyers of commercial real estate as well as owners who wish to refinance their properties. Q: How did you get into real estate? A: My dad was in real estate - he had a property management and development firm - so I grew up with it in the background. And, a couple years after college, I realized that real estate was something I wanted to pursue too. I started working with Lou Varone, a friend of his, doing mortgage brokerage and some sales. Then a couple more years later, when my dad became ill, I stepped in and took responsibility for his property management and development firm. Q: What is Kinsey Capital's advantage - what are you able to do for your clients that sets your firm apart? A: The culture here is about relentless pursuit of deals while maintaining a team-friendly atmosphere and integrity both internally and externally. We specialize in off market transactions. It is important to understand the market and the transactions we work on, not just to know the metrics of a particular sub district. For our clients, we take the time to figure out the type of property that has the best chance of meeting their financial goals given the time, money, and expertise they have at their disposal. For example, a multifamily property with ground floor retail may be the right investment for one investor, while a triple net property may be the right investment for another. We don't believe one size fits all, we believe custom service is the only way to go. We take personal relationships and personal accountability very seriously. We build trust and do what we say we will do, while all the time remembering that this is a marathon, not a sprint, and no career is completed through one transaction. We are more interested in finding a deal that works for our clients than finding a client that works for our deals. I think that is the main difference that sets us apart. Q: What opportunities do you see in the New York market over the next 12 months for investors in commercial real estate? A: The market is very heated right now. That being said, there are very few actual transfers each week compared to the frenzy of activity. There is a disconnect between buyers and sellers. Either buyers will have to be more aggressive in their underwriting or I think transaction volume will slow further. There is also already talk of a new bubble developing, but I think the stronger underwriting we have seen by the banks along with the general lack of supply should prevent any major overheating for at least two years. I always remind people that there was a time when $100 per s/f was a crazy price. Now $1,000 is that crazy price. The perception shift is painful and there is a psychological barrier at that number. Q: Do you think it will be easier or more difficult for people to secure commercial financing over the next 12 months? A: Easier. People will forget 2008 when they are not meeting their capital deployment goals. Q: What do you see happening in the U.S. economy or the global economy that is likely to impact commercial real estate in the New York metropolitan region in the coming year? A: Not much. New York is so well insulated from the broader economy because the more unpredictable other areas become, the more money heads into New York. I suppose another severe weather event could cause some issues. Q: You left ERG did anyone else come with you? A: A couple members of the support staff, but no brokers. Q: What type of deals are you interested in? A: I prefer multifamily deals, but I like anything that has real potential to sell. I enjoy any deal where there's the potential to create value for my client. Q: Are you involved with any real estate organizations? A: I expect to receive my Certified Commercial Investment Member (CCIM) designation this month. Q: Are you doing deals in New York or are you more regional or national? A: I typically work on deals in Manhattan south of 96th St., but when opportunities arise elsewhere I evaluate them on a case-by-case basis. I have seen a great deal of time and resources wasted when people pursue deals outside their area of expertise (geographically or otherwise). Q: Why did you leave ERG? A: I decided it was time to go on my own. I really enjoyed my time there and built some great relationships. I left on good terms with the other partners and I am happy to see the success they continue to have. James Kinsey is president of Kinsey Capital LLC, New York, N.Y.