Seth Niedermayer, a partner at HSF Kramer, is witnessing a significant restructuring of US real estate investments. He is currently advising on 17 transactions, the majority of which are dominated by private equity firms. These deals include joint ventures on the partner side, representing lenders and borrowers in construction loans, and sale-leaseback transactions.
Niedermayer's workload varies, but private capital dominates the market, both figuratively and literally. The growing dominance of private equity leads to highly structured transactions, increased leverage, and a flourishing debt fund business. The increasing complexity of real estate investments, coupled with high interest rates and market uncertainties, is slowing down negotiations. Niedermayer's schedule is consequently packed, though he does not complain. He values the variety of his work, which positions him well for the dynamics of HSF Kramer's real estate department.
When Niedermayer moved to HSF Kramer, then Kramer Levin Naftalis & Frankel, from international law firm Simpson Thacher & Bartlett in 2015, he had little real estate experience. However, Dan Berman, managing partner of HSF Kramer's real estate department, emphasised that Niedermayer possessed the necessary work ethic and business acumen for the position. Over a decade later, Niedermayer's client list includes prominent firms such as Mitsui Fudosan America, Hudson Bay Capital Management, BlackRock, Vici Properties, and LCN Capital Partners. His areas of activity encompass acquisitions, joint ventures, financing for both borrowers and lenders, and development projects across various asset classes.
Randall Shy, Managing Director at Hudson Bay, expressed appreciation for Niedermayer's ability to simplify complex matters: 'We pride ourselves on identifying the difference between actual and perceived risk. Having someone like Seth by our side, who can analyse and simplify complicated circumstances and facts, gives us a truly powerful tool.' In 2024, Niedermayer was called upon by Hudson Bay for the recapitalisation of 620 Avenue of the Americas with RXR, which the two firms now jointly own. He also represented Hudson Bay in a refinancing deal worth approximately US$238 million for Edge-on-Hudson, a master-planned development in Sleepy Hollow, N.Y. Both transactions required the integration of new capital into existing, complex asset structures.
In one of his largest deals, Niedermayer and his colleague Andrew Charles represented Mitsui Fudosan America in their extensive joint venture with Related Companies and Oxford Properties Group at 50 Hudson Yards. This project was significant and extremely complex in every respect. Furthermore, in 2022, Niedermayer was involved in the acquisition of The Venetian on the Las Vegas Strip by Vici Properties and Apollo Global Management, a massive asset which he describes as a 'mini-city'. The variety of his assignments, Niedermayer says, strengthens him in all aspects of real estate negotiations, as it allows him to develop a comprehensive understanding of the perspectives of the different parties.
Over the past eleven years, however, Niedermayer's clientele has drastically changed. The firm's originally developer-oriented work has, under the leadership of Jay Neveloff, partner and chair of HSF Kramer's US real estate department, shifted towards more institutional, investor-side deals. This shift occurred in parallel with the entire US real estate market, where the former buy-and-hold model is increasingly being replaced by the deployment of sophisticated private capital. Private equity's interest in US real estate is particularly strong, but Niedermayer's clients are becoming more selective in choosing managers and assets.
A domino effect of high interest rates led to increased demand for equity and more partners. Furthermore, investors are moving away from stable core and core-plus assets, preferring higher-yielding, more practical sectors such as data centres and senior housing. Zachary Cion, Managing Director at Hudson Bay Capital, emphasises: 'Unlike four or five years ago, you can't just buy for cash yield. You either have to unravel complicated situations or have a specific approach.' Seth Niedermayer has represented Hudson Bay in all these transactions.
