In a world of instant gratification—where markets move on Elon’s headlines and Tik Toks go viral—real estate can feel like a relic. It doesn’t spike like Nvidia stock or crash overnight like crypto. It moves at its own pace: slow, steady, and grounded in fundamentals.
Real estate isn’t shaped by daily market noise or political headlines. Of course, major trends like interest rates and lending conditions matter. But the day-to-day swings that affect stocks are mostly irrelevant to how we invest in real estate. That stability creates room for smart, long-term strategy.
Thinking About the Investment Timeline
Real estate investments typically fall into two groups: long-term (5–10 years) or shorter-term (2–3 years). Historically, many projects were built around long holds. But in recent years, more investors are asking for shorter timelines and more clarity on when they’ll get their capital back.
That makes sense. Over the past five years, we’ve seen COVID, inflation, rising rates, and rapid economic change. Predicting what the next decade looks like is harder than ever—and many investors prefer more flexibility.
In times like these, waiting for perfect clarity can mean missing the window of opportunity.
That’s why we’ve focused on adjusting our strategies with each cycle so that it works well in today’s environment. For the coming investment cycle in 2026, value-add condo development, where one renovates and resell existing buildings instead of building from the ground up or operating long-term rentals.
Why We Like For-Sale Value-Add Projects Right Now
This is not the typical rental real estate model. Our approach focuses on buying older residential buildings—typically vacant—renovating and enlarging them to create value and then selling individual condo units.
There are a few key reasons we prefer this strategy today:
Shorter timelines: Renovations typically take 12–18 months, compared to 2–3 years for new construction.
Lower risk: By working with existing buildings, we avoid many of the delays, surprises, angry neighbors and approvals that slow down ground-up development.
Clearer returns: We don’t rely on rent increases or future refinancing. Our returns are based on today’s renovation costs and today’s sale prices.
Proven experience: This is a strategy we’ve used successfully for over 20 years and we understand how to execute. Some sponsors get stuck because they don’t recognize the difference in how to manage a for sale asset vs a rental.
We focus on neighborhoods we know, especially in New York City—where demand remains steady and new condo supply is limited. Granted, outside of US or international politics, New York has its own political theater and crisis news cycles which we all hear about – especially over recent months. But like I mentioned in this intro to the article – real estate moves at a different speed – and if a sponsor understands their market – whether it be Miami, Nashville or New York – that sponsor – if successful, should know how to navigate his environment.
Why the Advantage?
Traditionally, for sale has had a negative stigma that developed after the 2008 crash – where some sponsors levered developments up to 95% and lost everything, or they designed wrong, or were built in places where no one wanted to live or buy an apartment. But from a risk curve – that is really no different than the challenges rental developments have.
For sale apartments have also been associated with large ground-up construction projects. But in our experience, renovated – smaller boutique portfolios buildings can offer the same (or better) results with fewer variables.
Here’s why:
- Shorter Timelines: You can save 2–3 years by working with an existing structure. There’s no need for excavation or long approval processes, which helps move the project along faster, especially when you know what you’re doing.
- Lower Construction Risk: Renovation scopes are more predictable and often less impacted by labor or material price swings. If you’re not excavating, doing demo, or digging new foundations, the risk drops quite significantly.
- Faster Sales: Sales can begin during renovation. Many buyers are willing to commit before completion, allowing us to close soon after the project is done.
- Built-in Character: Older buildings often have charm, high ceilings, and desirable locations that new construction can’t always match.
- Fewer Unknowns: With a standing building and existing zoning, costs and timelines are easier to manage.
The Role of Presales
One major benefit of for-sale condo projects is the ability to pre-sell units before construction is completed. This reduces financial risk and speeds up repayment of project debt once the building is finished.
In many of our past projects, if your development is in a good location – we’ve seen strong demand from those who want to secure a unit early. This allows the sponsor to pay down the loan quickly after completion—saving on interest and directly improving investor returns.
Managing Risk with Experience
No real estate project is without risk, but a sponsor should manage that risk with care and experience.
- Pursuing buildings that already have the correct zoning and use approvals
- Working with contractors known and trust under fixed-price contracts
- Aim to secure pre-sales before final project completion
- Understanding the unit absorption cycles, inventory and the market
Looking Ahead
As we head into 2026, we’re focusing on projects in cities like New York—where demand remains strong and new condo inventory is limited. We believe this value-add condo strategy offers a responsible and practical way to invest in real estate, especially in today’s uncertain market.