A trio of intriguing broker-drama stories in NYC that are worth looking at collectively. First, it’s unclear what someone slipped into Bob Knakal’s 🥃 on NYE, but he’s entered ‘26 in a spicy mood: Armed w/ the August pages of CO, he’s showing a willingness to call out his big-box counterparts; first characterizing the large firms’ touting of their global footprint advantage as “largely fiction,” and now taking aim at what he claims are the inherent conflicts of interest in being a full-service shop, i.e. one that not only sells properties, but provides leasing/financing/PM/etc. “When a development site or investment property trades, the sales commission is often the smallest economic component of the transaction for a large brokerage platform,” Knakal writes. We’ve seen more of the big shops tout the 360° component of their platforms, and seen this play out both in how the teams are organized – Spies/Harmon working even more in lockstep w/ Roeschlaub/ 🔥 stone at Newmark, for e.g. – and in their M&A moves. It’s interesting that Knakal is now positioning himself as the antidote to that approach.

Next, handy mid-market stalwart Robert Khodadadian also bust out the pen (though this is almost certainly GPT-written) to call out exclusive listings, which have historically been the holy grail of I-sales brokerage. He says that the practice essentially creates an unneeded barrier between buyer & property: “An exclusive broker may choose a buyer not because they are the strongest candidate or willing to pay the most,” Khodadadian’s AI avatar writes, “but because the broker can finance the deal internally or plans to resell it within their own network. These incentives can quietly shape the outcome.” 👇

On Wednesday, subscribers to The Promote Insider dove into one of the key catalysts for the surge in Japanese appetite for US homebuilders: tax arb 🪵 We also looked at Rise48’s cross-collateralized pool party, the latest syndicator strategy to stave off foreclosures. If this sounds like your jam, sign up for Insider on a 2-week free trial and read it here.

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To bolster his case, Khodadadian cites the e.g. of 101 Greenwich, which Man With Deep Pockets ™ Idan Ofer bought for a heavily discounted $105M ($225/ 🦶compared to $475/ 🦶 prev PP) from BGO last year. Though Newmark managed the sale, it was Khodadadian’s Skyline Properties that sourced the buyer and hooked him up w/ Nathan Berman, per reports.

We doubt that Newmark, Eastdil and the other big shops that have cornered the market for exclusive large listings will opt to respond to these call-outs – it’s more likely that they’ll stay above the fray. But it’s fascinating that the indie players have decided there’s benefit in publicly questioning these sacred cows 🐮

And finally, a lawsuit that explicitly states what many NY players have long felt: Steve Roth is terrifying, and brokers are afraid to go against him 😱 One of the great landowning families of New York, the Koreins, is suing Vornado over a rent dispute at Penn 1, alleging that given the firm’s intimidating rep, it’s nigh-impossible to find an impartial broker to appraise the FMV (need this to determine rent resets). “Each year, Vornado’s transactions generate tens of millions of dollars of commissions for brokers in New York City,” the suit states. “Countless brokers in New York would relish the chance to obtain a piece of that business.”

The Koreins claim the property, as appraised by David Pearson, is now worth $1.9B, which means VNO’s ground rent should jump to $114M from the current $2.5M - i.e. 45X 🎈. Vornado tapped fmr. CBRE ace and since ‘24 indie broker Darcy Stacom to represent it; Stacom allegedly got heavy-handed w/ the Koreins and threatened that Vornado would sue; the tough talk had the intended effect on the 3rd appraiser and panel chair Jon Estreich, who became much more receptive to VNO’s position, the suit states. In early ‘25, when Stacom, whose indie venture hadn’t yet gathered much steam, announced a team-up w/ fmr. Vornado exec Wendy Silverstein, Roth made a rare show of public support, saying “they will be getting many important and complex assignments from us." The Koreins allege Roth did so knowing that Stacom was playing a critical role the Penn 1 appraisal dispute. [Basically: Nice [thing] you have there. Would be a shame if something...] VNO’s attorney, Janice Mac Avoy of Fried Frank, told TRD that “this matter was already asked and answered, with a decision three weeks ago in Vornado’s favor.”

Couple thoughts: First, it brings up the forever-relevant Q of who a broker is a fiduciary for: This is a long-term, r’ship-based business, and can you really have tunnel vision on one discrete assignment and do what you have to do, even if it alienates a big client down the road? 👽 And second, it’s interesting to see when the powerful New York families such as the Koreins and the Goldmans – who’ve famously beaten up household names in ground-rent disputes – adopt the position of the little guy.

“Witkoff can solve any issue except owning multifamily in Santa Monica.”
“The way people are able to con these retail investors into putting capital on these things…honestly, one of the great hallmarks of America.” 🫡 🦅

This week on the pod, we look at the tragicomedy that is TSX Broadway, the Maefield/L&L/Fortress Times Square megaproject that came undone and left hundreds of foreign investors in the lurch. We discuss how complex ground-ups can lay waste to capital stacks, and what can happen between partners under pressure. We then look at the latest alarm bells ringing in the high-octane world of data center development – Blue Owl is staring down a multibillion-dollar void, and OpenAI’s marquee Stargate project has had major challenges powering up. Finally, we explore the rise of the rich renter – a trend that’s reshaping the new dev market. Plus, our "Punch List" rundown of the newsiest industry happenings: Shvo selling Transamerica Pyramid in SF; the Kushner battle over Veris; Witkoff's Roosevelt Hotel cameo; ICE's $38B warehouse shopping spree; and Stonepeak's marina moves. ⛵

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SO much action on the agency-license front. CMA confirms chatter we’d been hearing that Basis Capital is looking for a buyer for its Fannie & Freddie licenses. Basis has hired Beekman Advisors for the hunt, w/ the licenses + accompanying MSRs expected to fetch in the $150M-$200M range. Licenses are hard to value, as we’ve written, b/c worth is wildly skewed by how they fit into a lender’s overall playbook. The most recent consummated deal, Fifth Third’s purchase of the Mechanics Fannie license, valued it at ≈ $100M, and per CMA a Freddie license can be worth between 1/3-1/2 that. And the number of licenses up for grabs in the market would also be a factor – as The Promote reported in early Jan., triple-threat player Lument is on the block, though it’s a much girthier prospect for a buyer. Also gotta take into account that Fannie itself is looking to wet its beak 🐦 on any license trades, throwing around potential fees as high as $25M.

Meanwhile, a v, v troubled lender is also shopping its Freddie SBL license The Promote understands, though no word yet on price. Ready Capital, one of the market’s worst-performing mortgage REITs (see also: Multi Lenders Silent Scream), has tapped Piper Sandler to offload the license, amid a broader liquidation of its portfolio. Ready’s non-accruals in its core CRE portfolio ($4.8B UPB) spiked to 23.4% in Q4 from 4.4%, noted KBW analyst Jade Rahmani. Net loss for the Q was $233M. The company also announced it had replaced its chief credit officer Adam Zausmer w/ Dominick Scali.

An unusual suspect is in the mix for marquee Manhattan tower Park Avenue Plaza.