F
ifth Wall CEO Brendan Wallace attributed the proptech bubble's collapse to investors flooding the space with more capital than could be wisely deployed, leading to unsophisticated asset managers backing flawed business models. Fifth Wall itself invested in some successful startups like ServiceTitan and Industrious, but also in companies that turned out to be money pits such as Opendoor, Doma, Blend, Hippo, and SmartRent.
The vast majority of venture capital bets fail, but even unsuccessful companies can still generate returns for early investors if they go public or are acquired before crashing. For instance, Opendoor went public in a 2020 SPAC merger, trading at around $30, despite consistently losing money on home flips during the pandemic buying frenzy. Today, its stock is worth less than a slice of pizza.
Doma, previously known as States Title, also went public in a $3 billion SPAC deal but saw its market capitalization and headcount collapse when mortgage originations declined. Hippo's CEO later admitted it was a mistake not to do a traditional IPO, with the company's valuation falling by 93 percent. SmartRent's share price peaked at $13 and now hovers around $1.60.
In this volatile environment, Fifth Wall appears to have done well, continuing to raise hundreds of millions of dollars. However, in venture capital, batting averages are unknown, and it's only through public statistics that we can gauge performance.
The real estate industry is also grappling with the impact of institutional buyers on single-family home prices. Governor Kathy Hochul has proposed banning them, but some question whether this is a genuine attempt to address the issue or just a popularity stunt.
In other news, condo developer Shiraz Sanjana was temporarily banned in 2014 for misdeeds at a Harlem property but has since returned with new projects, including one at 695 Sixth Avenue in Park Slope. His website shows several completed condos, but he remains under the radar.
The world of politics is also complex, with voters' motivations often shrouded in mystery. Consultants scrutinize polling data and interviews to understand why citizens vote for certain candidates, only to find that reasons can be flimsy or misguided. As one expert noted, some voters are "Archie Bunker-like" individuals who register as Democrats but feel alienated from the party's nominee.
Bribery and fraud charges against former Lt. Gov. Brian Benjamin were dropped due to the death of a key witness, Gerald Migdol. Benjamin resigned in 2021 after being indicted, along with Migdol.
Residential sales included a $9.5 million condominium at 15 Hudson Yards, while commercial sales topped out at $13.3 million for an apartment building in Greenpoint. New listings include a $24.25 million condominium at 111 West 57th Street, and the largest new building application was filed for a community facility in Kew Gardens.
