Global Real Estate Dealmakers Kyle Naye

The war in Ukraine has dominated the headlines for many months. Since February 2022, nearly 9 million Ukrainians have fled their country, and tens of thousands of civilians and soldiers have died. My guest today, Denis Buyanov, has lived through the sirens, explosions, and tragedies that come with war. During this episode, he openly shares his experience of leaving Kyiv, returning to Kyiv, and being separated from his family. He thinks of himself as one of the lucky ones in comparison to so many of his fellow citizens; however, his story is an incredible display of the strength and resilience of human beings. Although we delve quite deep into his personal story, since this is a real estate podcast, we of course also get into his take on real estate in times of war, including the approach he took as a landlord. 

Key Points From This Episode: 
[01:28] - Episode Overview
Kyle returns to the podcast world with an episode about what is globally one of the most noteworthy topics right now: the war in Ukraine. Kyle and his returning guest, Denis Buyanov discuss this topic from both a personal and a real estate perspective. 


SURVIVING THE WAR: THE PERSONAL SEGMENT
[08:55] - Misunderstanding Russia
Denis shares why he, along with many others, didn’t believe a war between Russia and Ukraine would ever happen. 
[14:30] - The Day Everything Changed
On the 24th of February 2022, Denis knew he had been wrong about the war. Suddenly, the sounds of sirens and explosions were inescapable and his world was turned upside down. 
[18:56] - Leaving Home
Denis and his wife, along with their child, their dog, and her three puppies, attempted to leave Ukraine the day after the invasion began. They packed their cars with their most important possessions and found one of the few routes that were not blocked.  
[22:45] - Returning to Kyiv
After 5 hours of driving, Denis realized they weren’t going to be able to make it safely to another city, so they decided to return to Kyiv and move in with their friends.
[25:11] - Difficult Decisions
After 2 days of acquiring information about the war, Denis and his wife decided they needed to leave Kyiv. They went to stay with other friends in Ukraine. They were lucky in comparison to many others but it was a challenging time and after a week they moved back to Kyiv.  
[30:52] - Underestimating Ukraine
The Russians thought that overthrowing the Ukrainian government would be an easy task, but they underestimated the power of the Ukrainian people. The conflict in Kyiv escalated and people were being killed on the streets. 
[37:18] - Separation
New laws prevented Denis from leaving Ukraine, but with the help of his fellow citizens, he was able to get his family out. He has spent the past few months separated from his family, but their return to Kyiv is imminent.


SURVIVING THE WAR: THE REAL ESTATE SEGMENT
[43:18] - Real Estate In Times of War
From February to June, most commercial and residential landlords did not expect their tenants to pay rent. Now, most rental prices are reduced by up to 50%. As a landlord himself, Denis explains the approaches that he has used with his tenants.
[51:15] - Can the Government Be Trusted? 
Denis shares why he is not convinced that people who have lost their houses or their businesses due to the war will receive compensation from the government. 
[53:21] - How Different Parts of Ukraine Have Been Affected By the War
Not every city or town in Ukraine has been impacted by the war in the same way. Denis tells us which areas have become overpopulated, why, and how this is affected rental and sales prices. 
[01:00:50] - Issues Facing the Construction Industry
Although there is lots of work to be done, finding workers is a major ch

This Kyle’s Take features commentary on the recent performance of Mexican real estate across the residential and commercial spectrum, insights from the interview with Jaime Fasja, poll results, and a preview of the next guest.
00:15 – Introduction
Kyle sets the stage for the episode by describing the context of his surroundings at the Ritz Carlton in Mexico City.
1:28 – BREAKING NEWS
1:32 – Residential Metrics and Drivers
Kyle highlights recent price increases in major Mexican cities that were not only attributed to the pandemic, but also the growth in the middle class and, in some instances, foreign buyers.
3:47 – Economic Decline and Subsequent Rebound
After the Mexican economy plummeted in 2020 to levels not seen since the 1930s, the ratings agencies downgraded the country’s credit. 2021 has offered a brighter picture, however, with GDP up 20% through Q2.
04:27 – Foreign Buyers and Legislation
Citizens of the US, Brazil, and Spain constitute the majority of foreign buyers in Mexico City. In coastal areas, foreign nationals have been able to own real estate via bank trust since a 1993 amendment of investment law.
05:35 – Mexican Lending & Market Statistics
While mortgage rates remain elevated in Mexico, the Mexican Central Bank has made two consecutive hikes in its benchmark rate to address inflation concerns. Industrial activity and the services sector have both flourished this year despite moves by the government that upset investor confidence. 
07:23 – Office Performance
High vacancy, a robust new supply pipeline, and tepid leasing activity are projected to weigh on the office market in the coming years, resulting in a tenant-favorable market.
08:48 – Industrial Performance
An improved vaccination campaign, the reactivation of the US economy, stable international trade, and strong e-commerce demand have acted as tailwinds to the Mexican industrial market.
10:17 – Retail Performance
The retail market has shown signs of improvement in 2021, though this progress is occurring at a slower pace compared to other countries.
10:54 – GUEST INSIGHTS
11:03 – Jaime Fasja Commentary|
In Episode 24, Jaime made the following points among others: 
1) Thor Urbana capitalized at a very early stage on the reduction in Mexican tariffs on Chinese goods; 
2) a new real estate venture can propel itself from obscurity to a $500mm pension fund commitment within a matter of months; 
3) Mexican coastal markets feature lodging that is 2x the price compared to inland cities; 
4) Thor Urban’s creative structure led to the consummation of the Ritz Carlton deal; 5) the outdoor nature of Thor Urbana’s lifestyle centers helped retain foot traffic during the pandemic. 
13: 18 – POLL RESULTS
Kyle reveals the results from his last poll, which was:
When will the major tech companies (Facebook, Amazon, Apple, Netflix, Google) return to office?
January 2022 or earlier – 14%February 2022 – 26%March 2022 – 30%April 2022 or later – 30%The next poll to be featured at kylenaye.com will be:
How long will it take Western European tourist visits to the United States to reach pre-COVID levels?
Less than 6 months6-12 months1-2 years2-3 yearsMore than 3 years14:50 – NEXT GUEST
Kyle provides some closing comments relating to the next guest for Episode 26.


Additional Information
Fideicomiso: https://www.expatsinmexico.com/what-is-the-fideicomiso/

While this episode’s guest, Jaime Fasja, has a family background in real estate dating back 50 years, he crafted his own way to the highest echelons of retail, hospitality, and industrial real estate investment & development across Mexico and the Caribbean. The 180-person firm that he started from scratch in 2012 and now leads as co-CEO, Thor Urbana, owns assets in 20+ locations, primarily consisting of lifestyle retail centers and luxury hotels. Last week, Jaime and his team opened their latest project, the Ritz-Carlton Mexico City, adding to their roster of hotels featuring such flags as Thompson, Montage, and Four Seasons. As you will hear, Jaime has experienced both pleasant surprises and acute challenges since the start of COVID as he navigated temporary mall closures, pandemic safety protocols, leisure travelers from the USA, and new acquisitions. These aspects notwithstanding, Thor Urbana has emerged stronger than ever from the past 20 months and is ready to continue a steep growth path in the years ahead. 


0:42 – Episode Overview
05:50 – CAREER FOUNDATIONS: The Ascent of a Dealmaker
06:04 – Family Real Estate Background and Education
07: 48 – Reasons for Business School
08:57 – Mexico’s Historical Lack of Institutional Capital
10:35 – Relationship with Co-Founder Jimmy Arakanji  
12:36 – Steps of Creating Thor Urbana
15:22 – Focus on Retail vs. Hospitality
17:52 – Selection of Partners
19:53 – Leveraging Thor Equities Resources
23:12 – Culture at Thor Urbana vs. Thor Equities
25:46 – Co-CEO Responsibilities
27:44 – Expansion into Other Countries
30:23 – Greatest Challenge at the Moment
32:00 – MAKING THE MARKET: A Research Perspective
32:09 – Real Estate Comparison of Inland Cities vs. Coastal Markets
39:25 – Riviera Nayarit News
41:32 – Mexico City Luxury Hotels
46:39 – Mexico City Rate Increase
47:48 – Domestic and International Guests
49:33 – COVID’s Effect on Mexican Lifestyle
52:44 – Lender Discussions During COVID
57:15 – Pandemic’s Effect on Lease Structure
58:43 – Recent Acquisitions Activity
1:02:54 – Deal Competition
1:04:28 – POLITICIANS AND ATTORNEYS: Bureaucracy and Red Tape
1:04:40 – Pending Legislation Affecting Real Estate
1:06:34 – Entitlement and Permitting
1:08:57 – Legal Action for Title Claims
1:10:53 – Property Taxes
1:12:21 – Frequency of Litigation
1:14:50 – FINANCE AND FORMULAS: The Economics Behind the Deal
1:15:28 – Discovery of Opportunity
1:18:34 – Construction Timeline
1:20:21 – Equity vs. Debt
1:21:31 – Choice of Ritz Carlton as Flag
1:23:39 – Fee Structure Negotiation
1:25:40 – Ritz-Carlton Compared to Comp Set
1:27:54 – Unique Amenities & Technology
1:30:47 – Planned Hold Period
1:32:30 – TOURIST IN YOUR OWN TOWN: How to Spend Three Perfect Days
1:32:36 – To-Do List
1:35:26 – First Time Visitor Tip

Go to KyleNaye.com for full show notes and more info. 

This episode of Kyle’s Take features coverage of French real estate performance across product types throughout COVID, noteworthy investment projects, insights from the interview with Alon Kasha, poll results, and a preview of the next guest.


00:42 – Paris COVID Protocols
02:02 - BREAKING NEWS
02:11 – High-level residential performance
02:41 – Effect of Stimulus Payments
03:08 – Domination by French Buyers
03:30 – Market Drivers
04:10 – Grand Paris Project
05:45 – Investment Sales Market
07:33 – Industrial Growth from E-Commerce
07:51 – Rebound Expected in Late 2021
08:58 – Investor Sentiment
09:25 – Sources of Capital
10:17 – Outlook for Remainder of 2021
10:56 – GUEST INSIGHTS
11:00 – A “Grey” Market
11:50 – Tremendous Apartment Demand During COVID
12: 32 – POLL RESULTS
14:30 – NEXT GUEST

Visit KyleNaye.com for full show notes and more info. 

Little did Alon Kasha know at the time, but the move that he and his wife Betsy made to France nearly 20 years ago led to what is today a thriving real estate development and interior design firm called Kasha Paris. In this episode, Alon sits down with Kyle in the kitchen of one of his recently renovated apartments to describe the creation of this business, as well as how it has evolved over the years. As you will hear, this couple's background in finance and public relations has served them well throughout 100 real estate projects in the tony Saint-Germain-des-Prés neighborhood of Paris. After such prolonged exposure to the local residential market, Alon and his wife have an uncanny ability to gauge the complexity, profitability, and marketability of any prospective apartment purchase. Further, they routinely employ innovative architectural and engineering techniques to produce gems that command millions of Euros from French, American, and other international buyers.
Alon is a dual US/French citizen who graduated from the University of Michigan with degrees in Economics and French. Betsy graduated from Wellesley College with a dual degree in History and Art History.


0:42 – Episode Overview
3:24 – CAREER FOUNDATIONS: The Ascent of a Dealmaker
4:24 – Finance and Luxury PR Lead to Paris
9:39 – Opportunities with Classic Design
10:53 – French vs. American Home Entertaining
11:30 – Business Model Gains Momentum
13:10 – Investor Relationship
13:45 - Move from London to Paris
15:38 – Early Days in Paris Real Estate
17:57 – Appeal of Apartment Features
19:10 – Creation of a Good Reputation
19:38 – Growth in Operations
22:08 – Concierge Services
26:39 – Buyer Pool
27:53 – Typical Sales Timeline
29:39 – MAKING THE MARKET: A Research Perspective
30:00 – COVID Real Estate Experiences
34:54 – Desirable Apartment Layouts
36:35 – Distressed Deals
37:01 – French Real Estate Financing
39:53 – POLITICIANS AND ATTORNEYS: Bureaucracy and Red Tape
40:09 – Permits and Approvals
45:29 – Homeowners Associations (“Conseil Syndical”)
50:08 – French Property Taxes
55:30 – Unique Ways to Offset Taxes
56:40 – FINANCE AND FORMULAS - The Economics Behind the Deal
56:55 – Challenging Part of Renovation
58:20 – A “Home Run” Deal
59:24 – Investor Communication
1:00:11 – INVESTMENT COMMITTEE Q&A - Vente en Viager
1:03:56 – TOURIST IN YOUR OWN TOWN – How to Spend Three Perfect Days
1:04:08 – Cafes and Restaurants
1:05:21 – Visitor Tip


Additional Links
Kasha Paris - https://kasha.paris/
Instagram - https://www.instagram.com/abkasha/?hl=en
Facebook - https://www.facebook.com/abkasha/videos/

To wrap up summer, Kyle shares some newsworthy real estate headlines and COVID observations from Italy, key takeaways from his conversation with Alberto and Enza Barba, information about his next online poll, and future guest commentary.

00:15- Episode Introduction
Kyle expresses the special nature of his podcast, as it was recorded on-location in Positano, Italy after his conversation with Alberto and Enza Barba (Episode 20). 
00:53 – BREAKING NEWS: Italy
00:57 – Brighter Economic Prospects Ahead
Italy experienced negative GDP growth of 8.9% in 2020, but has rebounded to the point where the European Commission forecasts average annual growth of 4.4% between 2021 and 2022.
1:16 – National and Local COVID Information
Italy has managed to vaccinate 40% of its population, though the pandemic has resulted in 4.2mm COVID infections and 128k deaths in the country. Positano has fared much better, with a meager 130 infections and no deaths. 
1:48 – Improving Tourism Picture
Venice hotels have recently reported 70% occupancy and anticipated bookings for Summer 2021. In Positano, hotel owners have indicated current occupancy in the 50-80% range, with more guests arriving on the weekends. Meanwhile, the Uffizi Gallery in Florence reported a 40% increase in visits from the first to the fourth week of May. Italy expected 39 million tourists to visit in June through August, which would be a 12% YoY increase.
2:42 – US to Italy: Airport Experience
At Newark Liberty Airport, the check-in process caused confusion among passengers, as limited airline personnel were present to address COVID testing & vaccination concerns. On the other hand, the arrival experience at Rome’s Fiumicino Airport was surprisingly easy, as the authorities eliminated a mandatory antigen test for incoming passengers the day prior to Kyle’s arrival.
3:44 – Mask Wearing Protocols
Masks have been required both inside and outside since October 2020, but this regulation was largely ignored in all but a few places in Positano.
4:07 – Tourist Composition
Most of the non-Italian visitors in Positano during Kyle’s stay were French and German, with a handful of Americans also observed. In contrast to a normal year when 80% of business comes from Americans, restaurants are mostly catering to Italian guests from elsewhere in the country.
5:07 - Removal of Mask Mandate
On June 28th, the outdoor mask mandate was removed across Italy, but the Campania government indicated it would remain in place for another two weeks because of India Variant concerns.
5:28 – GUEST INSIGHTS: Enza and Albero Barba
5:50 – Challenging Approvals for Redevelopment
The process of moving forward with any sort of property redevelopment is never straightforward, as the local government / zoning rules are ambiguous. A certain rule may or may not exist on paper, but collaboration with authorities is still needed. 
6:14 – Change & Cancellation Fees
Local property owners are suffering economically because they cannot assess the usual changes for booking changes and cancellations due to COVID.
6:49 – Booking.com Dominance
Booking.com is the predominant way that hotels and B&Bs advertise on the Amalfi Coast.
7:24 – Competitive Hospitality Environment
Despite its relatively small size, the hospitality business in Positano is a very competitive one. Competitors are constantly watching each other to see whether regulations and procedures are obeyed. 
8:00 – MONTHLY SURVEY
8:15 - Which of the following European countries wi&