On Thursday, September 7th, the Baker Program in Real Estate was honored to welcome Meir Cohen, Founder and CEO of Cohen Equities, to the Distinguished Speaker Series. Mr. Cohen’s entrepreneurial background and inspirational story captivated a full audience of students throughout his presentation.
Mr. Cohen began his talk with a short video about how future macro trends will shape global populations and how he’s built his career by constantly adapting to changes in markets. He began his career in real estate after moving from Israel to the United States in the early 1980’s. With just a few thousand dollars to his name and an entrepreneurial spirit, he did his first real estate deal in Harlem, a neighborhood in Manhattan. Over the next three years, he would do over 40 real estate transactions across several property types. When the recession of the late 1980s hit, he began buying underutilized parking facilities in Manhattan and eventually used these cash flows to buy other buildings in New York City. As a Principal at C&K Partners, he directed over $1 billion in transactions, including Pier 40 and 1710 Broadway in New York. Early in our distinguished guest’s presentation, it became clear that Mr. Cohen has a gift for value creation. His ability to discover underutilized property in areas on the rise, in conjunction with his creative vision to attract tenants, and create significance in properties, has made an indelible impact on New York City real estate.
Mr. Cohen founded Cohen Equities in 2011 to take advantage of price dislocation he saw in the market coming out of the recession. True to his roots, Mr. Cohen has been an opportunistic investor, purchasing CMBS loans, leaseholds, and various types real estate assets since founding the firm. He told students about a recent transaction involving a large-scale development project with a building assemblage component. His perspective gave students an insight into the specifics of deal making, especially since the project entailed getting several different property owners with competing interests to sell their stake.
Mr. Cohen’s commitment to reinventing and furthering his business is a valuable example for the group. His ability to be at the forefront of trends in his market and opportunistic in his execution of those trends is a defining characteristic of Cohen Equities. Mr. Cohen shared some advice that he would tell himself if he was starting out now:
- Find institutional partners early – These longer term investors make strong partners in volatile markets.
- Knowing when/where to think long term – Thinking longer than five years out and recognizing long-term trends adds a tailwind to each deal and can help in the case of unexpected holding periods.
- Hold onto NYC properties – Holding over a longer period may lower IRR for a project but can have an accretive impact on a portfolio or provide leverage later.
- More 1031 exchanges into Manhattan – Using these early in a career can help roll equity into more prized properties or help you get access to more expensive markets.
- Take big risks when you see a market crash – Maximize the opportunity when you see others willing to step away from property cheaply.
- Don’t always try to steal a property – Great investments aren’t always purchased at rock bottom prices.
Mr. Cohen’s experiences provided many viewpoints to the students, making it both interactive and informational. For many, this was the first exposure they had to an entrepreneurial way of approaching and transacting real estate. The students and faculty of the Baker Program in Real Estate thank Mr. Cohen for visiting the program and appreciate the years of insight he provided to students.
