🗞️ How TRD broke open real estate’s “worst-kept secret” | Inside the July 2024 Issue

Inside the latest issue of The Real Deal Jul 01, 2024 [View in Browser]( [Share](   [Magazine Cover Image]( Real estate may have its very own Harvey Weinstein case. In many ways, it’s worse. The Real Deal [broke]( the bombshell news in recent weeks that top real estate brokers Oren and Tal Alexander are at the center of lawsuits that charge they raped and sexually assaulted women in what one industry expert called the “worst-kept secret” in the business. Over the course of a decade, the two brothers were involved in record-setting deals from Miami to New York to London, all while mimicking the lifestyle of their uber-wealthy clients, [especially when it came to partying](. Handsome and connected, their names would appear on lists of Manhattan’s most eligible bachelors. Since the initial two lawsuits against Oren and his twin brother, Alon, who works outside of real estate in the family’s security business, at least 28 more alleged victims of the brothers have raised similar rape and sexual assault allegations, according to lawyers. There may be more. Our cover story this month goes deeper into the shocking details of the case, which will likely take several months to fully come out and may ensnare other real estate players. Drugging women, forcibly dragging them around and tag-teaming victims were part of the brothers’ alleged playbook, with some of the alleged attacks taking place at parties. The fact that these claims appear to be an open secret in real estate is shocking. But it shows that when big money is involved, it’s tempting to let basic human decency go by the wayside. “Rumors of bad behavior by the Alexander brothers have been the worst-kept secret in New York and Florida real estate circles for well more than a decade,” appraiser Jonathan Miller noted. “What did the Alexanders do to keep all their victims so quiet for so long? … This story isn’t over.” TRD plans to follow the trail of who knew what, and whether anyone in the industry served as an enabler — either at the brokerage they called home for a decade or their newly formed company Official. We’ll also look at what drove the brothers’ alleged actions — was this bro culture run terribly amok, or something even more nefarious? And what were the Alexanders taught growing up by their father, Miami spec home developer Shlomy Alexander? There are some clues. In a YouTube video, “How Oren Alexander Conquered the Residential Real Estate Industry,” he acknowledges that “we were raised differently than our peers,” with a “hustler mentality.” That included illicit activities, even then. “We were bookies as kids,” Oren says in the video. “Probably something you never wish your kid to do.” When I first heard about the sexual assault allegations, I was nauseated, slightly physically ill. As I’ve become inured to the facts of the case, it’s hardened into a desire to uncover the full details of what happened. There is no shortage of people speaking out about the alleged attacks, on social media and to our reporters. The initial bombshell scoop and the seven subsequent stories we published last month were the amazing work of reporters Katherine Kallergis and Sheridan Wall, working with editor Ellen Cranley. (Email them at kk@therealdeal.com and sheridan.wall@therealdeal.com.) When they were working on the first story, we heard that at least one other major media outlet had been trying to write it for a long time, but was unable to pin it down. The filing of the lawsuits under the Adult Survivors Act broke the vacuum seal. Once we ran the first piece, the floodgates opened, with other alleged victims coming forward. Reports that followed news of the lawsuit describe victim accounts dating back to when the brothers were in high school in Miami, all the way to 2020. Sexual assault messes up victims’ lives, plain and simple. It even affects children raised by a parent who has been traumatized. These alleged attacks can gut a person’s life and create generational trauma. The silver lining of real estate’s shameful open secret being out there in the open is that it may prevent further attacks and suffering. Thank you for reading the issue. Editor's Note Stuart Elliott Editor-in-Chief & CEO   If you’re interested in receiving future magazine issues in print, sign up for our [annual subscription](. Save $20 OFF with promo code: MAG20 [SUBSCRIBE NOW](   After rape accusations, a closer look at the parties and social events that fueled the Alexanders’ rise There were deals, and there were parties. When Oren Alexander sold a penthouse at the Park Imperial in 2009 to South Florida attorney Jim Ferraro, whom he’d met skiing in Aspen, he threw a [party]( on the day of the closing. It was his first sale and he was hoping to keep the momentum going, he [told]( The Real Deal in 2019. Oren and his twin brother Alon’s 27th birthday bash at Beautique, a since-closed Manhattan lounge where the rich used to gather, was immortalized in a two-minute video showing guests like Howard Lorber and developer Zach Vella. And for their brother Tal’s 30th, in 2016, the trio spent a celebratory weekend in the Hamptons. The jet-setting Alexanders — Oren and Tal — built their brokerage business at Douglas Elliman before founding their own shop, Official, backed by white-label company Side. Oren’s goal was to stand out among his peers by living the lifestyle of his clients. And so while they built, they also partied, hitting up high society staples like Art Basel and establishing themselves as hosts on the circuit. [READ MORE](   [Image]( Bank failures are coming. Here’s how it could play out The echoes began in May. Barry Sternlicht of Starwood Capital Group predicted a regional [bank failure]( “every day or every week.” Days later, Newmark Chair Howard Lutnick warned, “Every single weekend a regional bank is going to go bye-bye,” and predicted 500 to 1,000 failures in 2025 and 2026 — as did [alternative lenders]( speaking at the same event. In June, [PIMCO’s]( head of global private commercial real estate joined the chorus.   [Image]( Ranking Miami-Dade’s top resi brokerages Aug. 17 is a date marked on every brokerage head’s calendar. It’s when the National Association of Realtors will institute changes to how broker commissions are offered on the Multiple Listing Service, per the settlement [inked in March](. Publicly, industry leaders are downplaying the potential loss in revenue, while some have compared it to D-Day, including on the popular Reddit community [r/realtors](.   [Image]( Inside the fallout from Shaya Prager’s “contrarian” 2022 office investments When Shaya Prager buys a new building, he swipes a magic credit card. Regardless of his assets or revenue, there’s no credit limit. The only thing he has to do is pay the bill on time — and, as Prager has proven, even that requirement is a little loose. He started swiping during the pandemic. The relatively unknown investor from an Orthodox Jewish community in Lakewood, New Jersey, made a splash when he took his card on a shopping spree for something no one else wanted: [suburban office buildings](.   [Image]( Jamie Hodari won the flex office race by playing it safe On the 10th floor of a glass skyscraper in Midtown Manhattan, [Jamie Hodari]( strolled the empty hallways and took stock of the latest addition to his firm’s flex office portfolio, the [former WeWork headquarters]( at Tower 49. Industrious had just announced a 10-year deal with landlord [Kato International]( to develop and operate 240,000 square feet of space across 16 floors at 12 East 49th Street. It is the biggest and perhaps most ambitious project so far for Industrious, the flex office company Hodari, 42, co-founded with his childhood friend Justin Stewart.   [Image]( How Maria Mendelsohn rode her way to the top of Wellington real estate Wellington is a quiet place. West of Palm Beach and bordered by the Everglades, its blue sky feels endless. Buildings don’t tower here. Palm trees shape the low-lying skyline. Pleasant as the flora may be, Wellington is better known for its fauna: horses, thousands of them. It is the winter equestrian capital of the world, which is also a way of saying it is one of the seasonal hubs for the global elite, and the real estate is priced fittingly.   [The Closing: Andrew Kimball]( INTERVIEWS WITH REAL ESTATE TITANS [Image]( The head of NYC's Economic Development Corporation talks about Mayor Adams’ embrace of public-private partnerships, how the failed 2012 Olympics bid rejuvenated the city and the perils of raising chickens in Brooklyn   Andrew Kimball understands what it’s like to be on the other side of the negotiating table. The Industry City alum now heads the city’s Economic Development Corporation, where he works with private developers and guides major projects, including Related Companies and Sterling Equities’ megadevelopment at Willets Point, with its 2,500 affordable housing units, stadium for Major League Soccer and 250-key hotel. The EDC is a quasi-governmental agency: It is a nonprofit, but its board is controlled by the mayor. Likewise, as president and CEO, Kimball draws on his experience in both public- and private-sector roles. [Read full story here →]( [FULL ISSUE HERE]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Share]( | [Manage Newsletters]( | [Unsubscribe](list=Subscribers + Engaged) | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](