The Promote Podcast A Condo Kingpin’s Next Act and Proptech Falls off the Wall
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Jan 28, 2026 A fallen condo kingpin reinvents himself in affordable housing by converting extended-stay hotels. The rise and collapse of a flashy Manhattan developer and the fraud spectacle around his firm. Proptech’s biggest funder stalls fundraising as the sector struggles to prove returns. A rapid-fire roundup covers REIT capital calls, high-profile foreclosures, Willis Tower debt, and a headline lease win in San Francisco.
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S2 REIT Used A Private Structure To Buy Time
- S2 REIT created a private vehicle to hold 10,000 Sunbelt units and buy time for agency debt and asset retention.
- The firm later warned investors it needed $70M via a pref paying 18% or they'd be forced to sell at low caps that could wipe 60–75% of equity.
Willis Tower Shows Iconic Office Value Fragility
- Blackstone's Willis Tower investment shows even iconic office assets can struggle; bought for $1.3B, $600M spent on renovations, now carrying $1.3B debt and facing divergent buyer opinions.
- Valuation disputes around Skydeck revenue and office NOI complicate potential debt assumption sales.
Ziel Feldman’s High Drama Manhattan Rise And Collapse
- Zeal Feldman's rise and fall followed a high‑octane Manhattan development playbook that converted iconic co‑ops into luxury condos at extreme prices.
- His firm HFC imploded after Nir Mir, the prolific fundraiser and second‑in‑command, was accused of faking wire confirmations, hiring actors to impersonate investors, and other frauds leading to prison time.