Cantor Fitzgerald

Wally Smith: I saw, I think you might have posted it, interview with Howard Lutnick on in Davos with Maria Bartiromo. It was brief, but he wasn’t forecasting that, okay, we’re going to be back to zero, one, two, 3% interest rates. He was basically saying this new normal is probably what we should expect.…

Wally Smith: We had a call, gosh, last week, and we were talking about typical interest rates, and again, we never talked product on the show, but the interest rates that are typical in the DST space. And he said, he saw this other project that was paying a ginormous interest rate and it turned…

Wally Smith: We talked about master leases. Have you seen anybody successfully yet doing master leases with single family rental communities? Jeff Hertz: There are a few sponsors that have gotten involved in that space, and I think there’s a lot to be attracted to that space. It is much more, I think, management intensive…

Wally Smith: When we look at interest rates, we can’t stop today without talking about interest rates and how things have changed. I know you were author back in November of an article that was, I think in real estate assets, one of the trade magazines. He was talking about the 60, 40 portfolio being…

Wally Smith: Well, talk a little bit about master leases because you said there’s seven deadly sins. One of them is you can’t change the lease, right? So you’re a DST, you set up a trust, it is now leased to Acme Corporation or Walgreens or Amazon, pick a name. And they’ve got a lease…

Wally Smith: What, five, six years ago now, they came out with something called a QOZ. What is a QOZ? Jeff Hertz: Qualified opportunity zones was an idea that an individual named Sean Parker, who was the founder of the Napster file sharing or music sharing service back when I was in college in the…

Jeff Hertz: And I guess just to broaden that a second, we talk oftentimes about DSTs, especially like a 721 strategy as being very attractive for somebody in the later phase of life, baby boomers, whatever term you want to use. But what is our whole society trying to get towards? We’re trying to get…

Wally Smith: Well, to that point, let’s talk about the advent of the 721, the UPREIT, how that works. That’s really recognized now as being the answer for the liquidity solution, but whether it’s compulsory or not, whether it’s an option. I know some of the sponsors require it, but let’s go back, tell me…

Wally Smith: Okay. More institutional players seem to be getting into the space. I think we both saw a news clip this morning about one of the big companies opening up one of the $3 billion REIT that they were going to be doing. Can you talk about that a little bit? The difference between…