CAGRI KANVER

By Rebeca Herrero

Real estate mover and shaker, Cagri Kanver is a partner in several companies that are teaming up to co-develop beautiful, upscale buildings in the USA. He is a gamechanger in the real estate industry, because when he starts a project, he emphasizes the fact that he begins from scratch directly to the execution and completion of the entire life cycle of the real estate. The architect of Turkish descent has been consulting, co-developing and operating buildings in the last several years in the New York area.

“From beginning to completion, including the subsequent operating and management of the asset, I am an integral part of every stage of the real estate project. It is a life cycle that comprises the inclusion of the General Partners who are clients and investors. I studied architecture, worked for the best architects and traveled the world overseeing magnificent projects on a global scale at an early stage in my career. New York is different. Everyone wants to be in New York City. In 2015, all the real estate people that I ended up meeting in Turkey were asking me how to make it in the USA, in real estate and especially in New York City. Back then I can assure you my mind was not entirely in this real estate position. It was a secondary market for me since I was based in Chicago. Now it is for sure the primary market for business pursuits.”

Since the pandemic Kanver focuses between Miami and New York City, which has brought him into an emerging class of top developers that play with the lead real estate developers in both cities. “My foreign clients asked me about the New York market, and in 2015 it was booming. The problem with foreign investors is that they want to be a developer in the United States, and that is almost an impossibility. Especially in New York, and I’m telling you, there is no way that an outsider can be a local developer in the city, unless they have proven record with a local partnership.

Investors come from Brazil, Japan, China, Turkey, Colombia, but they rarely succeed alone. Because the real estate in New York is local. You need experienced local real estate partners to handle it,” assured the charismatic and young Kanver, also partner of Watermark investments company which has real estate investments nationwide.

“Ingrained in the world of New York real estate development are the completion guarantee requirements that only the developer can handle.

Imagine that the bank loans 65% of the capital requirements of the project as your senior loan and 10-15% mezzanine loan for the entire project. For those terms, you need to have a proven record. With a local developer the real estate project covers approximately 75-80% loan to start with. If the developer can secure the remining 20% with equity. That’s why the banking relationship is crucial to the project because the bank is expecting the money back - Last In, First Out. Many of the people involved in construction don’t love the relationship they need to nurture with bankers, because of the field they are in and the liabilities they take, that’s why the contractors like to be hired by the developer not to deal with the bank. In addition, that is why developers need equity, so the investors and foreign investors need a good local developer to handle the completion and construction guarantees. If the foreign investor brings 20% of the equity, that will be the smartest way for the foreign investor to be part of a successful project. I always prefer the local developer to be part of the equity stack as well. That proven record is what I bring to the table for my investors and the local developers.”

“One thing for certain is that the local developer want your investment. Basically, Kanver has bridged the gap between the local developer and the foreign investor. “My investors come from all over the world, I am leading the team, not as high as that their own investment, but I also put money from my pocket, and I am totally invested in the project. Usually, the local developer does not want the services such as architectural and engineering from foreign countries. What they want is their investment and what I also offer the quality and reasonable priced building materials.”

“I tell you all this story because life is about connections and relationships. I am not lecturing on Real Estate 101, my connections and relationships bring the knowledge with the investment to ensure a robust, successful and profitable real estate project. When you look at reality, and you end up meeting all the local players in real estate market, and your instinct tells you are on to the next great project, preparation meets opportunity. In my work which requires upscale preparation, knowing all the big developers in these two cities, it is all about your experience, knowledge and proven record. It can also be the location, the chemistry between the partners or otherwise you are doomed.”

“Before I got there, I am honored to work with the owner of the Avdoo Group, Shlomi Avdoo who is a local developer from New York City. He possesses three essential qualities : he is always there for the project, he is very experienced at monitoring project cost, and he provides a good return to his investors. We don’t try to work extensively or at all in Manhattan because of the construction cost, the uncertainty with the construction process, from bringing in the construction equipment to the shifts in the market. It’s too restrictive. Brooklyn for us is currently booming. Here there is more land to be revitalized and opportunity zones. Tax abatements, and much more, prices are slightly lower than Manhattan. It’s not New Jersey, and it’s not Manhattan, it’s in between. Queens is booming too, look like Long Island City did 20 years ago, although I personally do not like all those high rises, it loses some of that essential family feeling and neighborhood life.”

“I believe in a balanced approach, and value the aesthetic. Here in the building where we are discussing the market, St. Marks Place you are 5 minutes from the main subway station. Only a few minutes away from Manhattan. It is also a responsibility; I have the opportunity to be a part of the overall project.

If something goes wrong, I am liable for my investors: this is my wall, my door, those are our materials. When you call me, I am there for you. Even through the pandemic, all went spectacularly well, we didn’t have a glitch.

To the question of what is the difference between Miami and NYC? He explains it like this: “New York is a global city, everyone wants to be here. Miami is coming in and out- very transitional. In the last five years it has been growing, and many businessmen left New York to Miami. But when individuals leave, it opens the opportunity for the youth market to come and they are the creative class. The big headquarters like Google, Facebook, Instagram and other tech companies move to Manhattan because they need that pool of talent. Now they are all over Hudson Yards and Meat Packing District.

In conclusion, Kanver believes real estate never dies. Another entrepreneurial passion is for the hospitality and food industry: “I want to challenge myself. I want to see and fell how we were able to create a successful restaurant from scratch as well, with a good partner who knows the industry. El Turco became a sensation in East Hampton and Miami because of its high quality and unique Mediterranean taste with a well known Michelin rated Chef.

I want to make it also into an art enterprise and Millwork for a beautiful design in the Hampton’s market. For example, we will be installing a sculpture created by a Turkish architect, Gokhan Avcioglu in the summer of 2023, at El Turco, East Hampton. We are also performing Millwork for high-end residences in the Hampton’s as part of my architectural skill set with Highgate Millwork company.

Summer of 2023 will be spectacular and great fun!” said the man with a vision and a great future ahead.