The Kirsh Connection

Episode Summary: Ocean West’s Strategy for Deploying Global Capital Across Asset Diversification

Host: Andrew Kirsh
Guest: Russ Allegretti, Principal, Ocean West Capital Partners
Date: March 24, 2026

Episode Overview

In this episode, Andrew Kirsh sits down with Russ Allegretti, co-founder and principal of Ocean West Capital Partners, to delve into the firm’s unique strategy for managing global capital and deploying it across a broad spectrum of asset classes. The conversation covers Ocean West’s origins, evolution toward asset and geographic diversification, building trust with international investors—especially Korean institutions—and candid insights into the current and future landscape of commercial real estate investing.

Key Discussion Points & Insights

Opening & College Football Banter (01:44–04:14)

• Andrew and Russ start with a lighthearted discussion on college football, especially Notre Dame’s playoff snub and a reflection on how the transfer portal has reshaped team compositions.
• Notable Quote:
  “All four quarterbacks were transfers in the final four... So it’s definitely changed.” — Russ (03:36)
• Sets a collegial, relatable tone for the deeper business topics to come.

Ocean West’s Business Model and Strategic Diversification (04:30–07:23)

• Ocean West Overview:

  • Based in El Segundo, CA; offices in LA, San Francisco, New York, D.C., and Seoul.
  • Two lines of business: (1) invest in core properties, mainly with foreign Korean capital (debt and equity), and (2) value-add/core plus strategies in office, student housing, apartments, industrial.
  • Founded in 2009; ~$8.5B in deals, 23 million sq ft, 7,500 units nationwide.

• Diversification as an Advantage:

  • Unlike many firms focused on one/two asset classes, Ocean West strategically diversifies across asset types and the capital stack, adapting as markets change.
  • Geographic and operational expertise is emphasized—local offices help in understanding market-specific drivers, especially in distressed environments.

• Notable Quote:
  “If we wouldn’t have changed who we are and kind of tried to expand, ... we’d be in a tough position right now.” — Russ (06:48)

Partnering, Asset and Geographic Expansion (07:23–09:32)

• Ocean West brings in collaborators when lacking internal expertise for specific asset classes (e.g., student housing, apartments).

• First to introduce Korean capital to U.S. student housing, industrial, and multifamily.

• Leverages trusted U.S. relationships to act as a private equity firm, finding and managing operating partners as needed.

• Notable Quote:
  “We do believe that you need to have both geographic expertise and property expertise to be best in class. So if it’s an asset type where we don’t have it, we’ll bring in a partner.” — Russ (09:18)

Building Trust with Korean Institutional Investors (09:32–12:38)

• Origin of Korean Capital Relationships:

  • Recognized the outsized Korean pensions/insurance market and their need to invest internationally.
  • Entered market slowly with warm intros via co-founder Phil Choi, building trust over years post-GFC.

• Education and Trust-Building:

  • Ocean West served as educators on U.S. real estate basics for Koreans burned after the GFC.
  • Focus on reliability: “We did our work ahead of time ... we didn’t miss on deals.”

• Track Record:

  • 22 deals with Korean capital; only two misses on performance.
  • First deal took five years; relationships blossomed afterward, resulting in ~$3.5B in deals.

• Notable Quotes:

  • “Real estate’s a relationship game, so we’re driven that way.” — Russ (10:51)
  • “They needed to get educated, and they needed trust.” — Russ (11:35)
  • “If the misses happened, they missed internally ... so we did our work ahead of time, and that engendered a lot of trust.” — Russ (11:53)

State of Korean and Global Institutional Capital (12:38–15:00)

• Current Trends:

  • Korean equity in U.S. is far less active than a decade ago; focus now on protecting existing investments amid global uncertainty.
  • Korean capital is still targeting select opportunities through debt (mezzanine, preferred equity), sometimes with paths to equity via foreclosure.
  • Describes a complex NYC deal (40th & Madison) involving Korean lenders and creative capital stack maneuvering.

• Notable Quote:
  “What we think is... bottom or near the bottom of the market. ... We’ll propose to do it a little differently than they’ve done in the past.” — Russ (14:40)

Reflections on Past Real Estate Cycles & LA Market (15:00–22:10)

• Industry “Alumni” and Learning Experiences:

  • Andrew and Russ reminisce about LA industry ties, notably work with McGuire and large transactions like the Commonwealth acquisition.
  • Describe McGuire’s vision for downtown LA, the boom-and-bust cycles, and personal/professional development gained there.

• Current LA Market View:

  • “Tough” outlook for downtown LA: oversupply, low absorption, high tenant incentives, political/regulatory uncertainty trump even market oversupply elsewhere.
  • Investors prioritize predictability—recent city policies (“things like ULA, ... capping of apartment rents on market units”) are spooking investment.

• Notable Quotes:

  • “What you get to is, what’s the next shoe to drop?” — Andrew (22:10)
  • “[Investors] can take good or bad legislation. What they can’t take is uncertainty.” — Russ (21:26)

Asset Selection in Today’s Market – “Needle in a Haystack” Deals (22:10–26:59)

• Focus on Unique, Story-Driven Assets:

  • Targeting deals with compelling business plans, even in tough markets, if basis and strategy are right.
  • Example: Playa District (Howard Hughes campus), using creative repositioning (splitting, repurposing buildings).
  • NYC deal: bought into right part of capital stack for accretive returns.

• Emergence of Thematic Investing:

  • Anticipates return to more thematic, market-wide investing (e.g., all-SF, multi in Inland Empire, Sunbelt deals at higher cap rates) as the market normalizes.

Capital Market Appetite and Transaction Dynamics (26:59–31:08)

• Shifts in Capital Appetite:

  • Change from extreme risk aversion (“42 reasons to say no”) to “green shoots” of activity, especially for unique situations and in major markets like San Francisco.
  • Owner/user and private capital are more active due to longer time horizons and ability to weather short-term volatility.
  • Institutional capital is cautious, IRR-driven, and focused on hold periods and lease-up risk.

• Notable Quotes:

  • “Everybody wants the off-market, the story, the right asset, and it’s got to be in the right market.” — Russ (27:59)
  • “Private capital and owner users...can buy at a low price per foot because they have an indefinite time horizon.” — Russ (29:45)

Leasing Outlook, Market Activity, and LA’s Entertainment Industry (31:08–33:51)

• Leasing Trends:

  • Leasing activity is improving, but largely driven by renewals rather than new tenant absorption.
  • Concerns remain over the lack of new leasing by large tech or entertainment tenants in LA.

• Entertainment Market Worries:

  • Studio and production real estate is facing challenges as filming shifts out-of-state in pursuit of better tax credits.

Industrial Asset Strategy and “Small Bay” Craze (33:51–36:56)

• Industrial Preferences:

  • Ocean West maintains a positive long-term view on big box industrial, even amid Inland Empire softness.
  • Favors assets with longer-term leases and opportunities to reduce basis (land sales, ESG upgrades, capital to boost rent).
  • Notes market inefficiencies: core lenders (big banks) force short sales; CMBS and regionals are “clogged”—these create buying opportunities but only sporadically.

• Small Bay Trend:

  • Acknowledges popularity but cautions on supply-demand and practical dealmaking.

Career Advice for Young Professionals (38:18–40:02)

• Advice for New Grads:

  • “Follow the demographics”—align your career with big, coming trends (AI, energy/power, proptech, migration, senior affordable housing).
  • Bet on longevity; pick areas with growth potential over the next 10–15 years.

• Notable Quote:
  “Real estate’s all about demographics...what’s going to be here in 10 years? … If I told you five years ago to focus on data centers...you’d be doing great.” — Russ (38:31)

Memorable Quotes & Moments

• On Diversification:
  “We try to integrate [capital market and operations capabilities] and then kind of go to where we think the opportunities lie.” — Russ (06:15)
• On Relationship-building:
  “Real estate's a relationship game, so we're driven that way.” — Russ (10:51)
• On Political/Regulatory Risk:
  “[Investors] can take good or bad legislation. What they can't take is uncertainty.” — Russ (21:26)
• On Asset Discovery:
  “Where we're at in the cycle for us is ... needle and haystack deals. They have to have a story and it's asset by asset.” — Russ (22:56)
• On Advice for Students:
  “Think about large demographics. ... If I told you five years ago to focus on data centers, ... you'd be doing great.” — Russ (39:08)

Major Timestamps

• 04:30 – Russ introduces Ocean West’s platform, lines of business, and geographic reach
• 09:32 – How they built and leveraged Korean investor relationships
• 15:00 – Industry/LA market retrospectives; working at McGuire
• 19:58 – Ocean West’s outlook on downtown LA investment
• 22:56 – “Needle in a haystack” approach to deals in the current market
• 27:35 – Update on capital provider appetite in early 2026
• 33:56 – Industrial market trends and Ocean West’s strategies
• 38:27 – Russ’ advice to college graduates and industry newcomers

Conclusion

Russ Allegretti provides listeners with an authentic look into how Ocean West stays nimble and opportunistic amidst shifting real estate cycles, leveraging global relationships and deep local knowledge. The episode is a valuable listen for anyone seeking insights on institutional capital flows, multi-asset strategies, and career navigation in the real estate sector.