Inside a Real Estate Family Office with Adam Weinbaum of A&M Capital Real Estate

Andrew Kirsh (0:00)

Hi, I'm Andrew Kirsh, co-founder of Sklar Kirsh. On this podcast, I interview industry leaders. You'll hear their real-time opinions on today's market, their background, unique career highlights, and guidance for newcomers to the industry.

This is The Kirsh Connection.

Welcome to another edition of The Kirsh Connection. We sit here mid-October, the 10-year treasury is north of 5.3 percent. These are some challenging times. The last few weeks, I've had some difficult conversations with clients about the state of their real estate, mostly in multi-family. At the beginning of the year, most of my clients thought that the worst had been behind them and that we would see greener shoots and greener pastures in 26 Unfortunately, that's not the case. We'll see what the end of the year brings us. Maybe some deal opportunities for those that have dry powder and they are taking advantage of the increase in interest rates as a buying opportunity. But for those playing defense, it's not the best of times. So hang in there. On this week's episode, I have Adam Weinbaum, the managing director of the family office of Alvarez & Marsal Real Estate Capital.

Adam gives his perspective on today's market. He talks about the product types that he is pursuing. When he does joint ventures, and when he buys direct. It's a very fascinating conversation with Adam, particularly in today's market with the rising interest rates. I'm sure you will enjoy my conversation with Adam Weinbaum.

Welcome to another edition of The Kirsh Connection. I'm here with Adam Weinbaum from Alvarez & Marsal Capital Real Estate. Adam, thanks for coming into the podcast. Of course. Did we meet before the breakfast roundtable?

Adam Weinbaum (1:55)

We did. We met at the pickleball thing.

Andrew Kirsh (1:57)

Yes, that's right. At Brembo Country Club.

Adam Weinbaum (1:59)

That's right.

Andrew Kirsh (2:00)

I remember there was another time where I was fortunate enough to hang out with you. I don't know if we played.

Adam Weinbaum (2:08)

I think we did. We did. On the tail end. On the tail end of it.

Andrew Kirsh (2:11)

Yeah. I'm feeling really bad now.

Adam Weinbaum (2:13)

That's okay. I can't remember that memorable experience. Yeah. I guess my game wasn't good enough.

Andrew Kirsh (2:18)

That's okay. I don't think mine was. Then we reconnected a month or two ago, or Lou Friedle and I are hosting these quarterly breakfasts, and we call it Real Estate Unfiltered.

Now you're here for the podcast. Unfiltered round two.

Adam Weinbaum (2:36)

Yeah. Well, less filtered.

Andrew Kirsh (2:38)

Less filtered. Yeah. So to the extent my audience may not know about Alvarez & Marsal parent company or Alvarez & Marsal Capital Real Estate, why don't you give them an overview?

Adam Weinbaum (2:52)

Sure. Ultimately, our company, Alvarez & Marsal Capital Real Estate, is the family office for the founders and co-CEOs of Alvarez & Marsal. For those that don't know, A&M is a very large financial services company. It was founded in the early 80s. Brian Marcell and Tony Alvarez founded it together, hung two shingles. The company has now 14,000 employees, 100 offices around the globe, 40 countries.

Really a juggernaut of a company still privately held, and Brian and Tony are still their co-chairmen and co-CEOs. So we're ultimately investing the family's dollars, both family's dollars, in the real estate.

Andrew Kirsh (3:31)

Incredible. I mean, I remember working with Alvarez & Marsal, not them specifically, but the company, when I was part of the clean up crew for the Lehman, I guess liquidating trust. Sure. I had already left Big Law, left Latham and Goodwin Procter.

And I was, you know, they had tens of thousands of assets that they needed to dispose of, but they weren't going to use Gibson Dunn to sell a $2 million piece of property out in the Inland Empire.

Adam Weinbaum (4:03)

Right.

Andrew Kirsh (4:04)

Let's call Kirsh. And so remembering that time and how involved they were not just in that bankruptcy, but the biggest bankruptcies. Yeah.

Adam Weinbaum (4:14)

I mean, any of the bankruptcies, I think their first bank, their first deal was Timex.

Deals of late FTX. So if there's a very large company that's in major distress, chances are Alvarez & Marsal has their fingers in it.

Andrew Kirsh (4:28)

Yeah.

Adam Weinbaum (4:29)

They're working on it. All right.

Andrew Kirsh (4:30)

So we'll get into more detail as to what you do, where you fit in the cap stack, the types of deals you're transacting, your perception of today's market, which by the way, I don't remember probably it's been at least four years where clients of mine are just calling me a little panicked.