The Promote Podcast
Episode: Blackstone Cubs, Secondaries Sizzle & Hines of Arabia
Date: November 5, 2025
Hosts: Hiten Samtani (“The Bard of CRE”) and Will Krasne

Episode Overview

This episode dives deep into three pivotal stories from the commercial real estate world:

1. The emergence of “Blackstone Cubs”—top alumni striking megadeals and shaping new market dynamics, with a focus on Chad Pike’s big industrial transaction.
2. The surging popularity of real estate secondaries as both institutional liquidity solutions and a clever market workaround.
3. The Middle East's transformation from global capital source to high-stakes development destination, spotlighting American firms’ move to build in the Gulf.

Throughout, Hiten and Will mix technical insights, industry war stories, and trademark banter—delivering a must-listen session for insiders and market observers alike.

Key Discussion Points & Insights

1. Blackstone Cubs and Chad Pike’s Industrial Megadeal

Timestamps: 02:17–15:27

• Who are the “Blackstone Cubs”?
  Top Blackstone alumni whose moves set the tone for CRE markets.

  • Focus on Chad Pike, former Euro real estate head at Blackstone, now making big plays with his new firm Macraura.
  • “There’s a couple of guys… the market’s been tracking closely… their moves kind of set the tone for the entire market.” (A, 02:17)

• Plymouth Industrial REIT Take-Private:

  • Chad Pike’s Macraura orchestrates ~$2B, 32M sf take-private acquisition—the classic Blackstone move: buy undervalued public REITs.
  • Outmaneuvered 6th Street, who had a large JV and earlier bid lower.
  • “We’re talking like a 50% premium to the share price right before 6th Street’s offer came out.” (A, 03:39)

• Market Context & Asset Class Nuance:

  • Surge in capital; “vibes drive price,” with capital flows and rate shifts fueling big premiums and deal activity.
  • Focus on “shallow bay” industrial—smaller suites, short leases (avg. 3 years), higher active management, more mark-to-market rent potential versus big box, long-lease product.
  • “Whenever there’s more active management, there’s the potential to drive outperformance.” (B, 06:34)

• Financing Shifts:

  • Debt environment for industrial is best in years, partly due to scale and diversification of cashflows.
  • “Generally, scale begets tighter debt.” (B, 06:49)
  • Life insurance and CMBS capital joining the party at higher deal sizes.

• Chad Pike’s Career & Blackstone Backstory:

  • Pike: fly-fishing-loving Blackstone lifer, co-headed real estate with John Gray, then nudged out in classic corporate power play.
  • “Chad Pike… was co-head of real estate. When a young wizard called John Gray was running the Americas, this guy was running Europe. So they were peers for a time.” (A, 08:42)
  • John Gray’s maneuvering to become sole head, Pike’s subsequent lateral “demotion” to Tactical Ops, and early retirement.
  • Takeaway: Blackstone breeds “stone-cold killers”—and alumni have outsized influence when they strike out on their own.

• Blackstone Mafia / PayPal Analogy:

  • Blackstone (like PayPal in tech) spawns waves of high-impact alumni (e.g. Tyler Henritzi’s Town Lane, $1.25B raised without IR/placement agents).
  • “Of course, [Tyler] would be one of these guys. Not just the resume, the deals, the expertise, the jawline in a lab.” (B, 14:25)
  • At scale, Blackstone talent pools and stock comp keep talent in-house longer—but those that leave can easily raise capital.

2. Middle East Evolution: From Capital Source to Development Destination

Timestamps: 16:27–22:38

• Historical Context:

  • Gulf (Saudi, UAE, Qatar, Bahrain, Kuwait) was traditionally where U.S. and global firms went to raise capital.
  • “It used to be the Gulf is where you’d go to rub noses and raise cash… now they’re going there to build out these skylines for these royal families.” (A, 16:35)

• Shift to Development:

  • American developers now opening offices (e.g., Hines in Riyadh) to partner on massive government-backed urban projects (e.g. NEOM).
  • “One of the most American companies… is opening an office in Riyadh. They had an office in Dubai… but [Saudis] have a massive mandate to build out their cities.” (A, 18:01)
  • Dubai now a wealth magnet post-pandemic: 70% property price increase in 4 years.
  • American and global expertise needed for “building at scale”—massive government mandates require imported know-how.

• Cultural & Mandate Dynamics:

  • Gulf states value speed, flexibility, and creative fee/JV structures—opportunities for savvy U.S. operators.
  • “If in the Middle East you get to start from scratch, you can get pretty creative… Adnan Khashoggi’s entire business model.” (A, 20:01)
  • Government investors more interested in building domestically, pressuring U.S. partners to “join the party” instead of just collecting checks.

• Market Implications:

  • Existing American firms are sending young talent; major builders (Brookfield, Hines) landing major new mandates.
  • Expertise in “mega” urban development remains rare globally—CRE heavyweights are now prized builders, not just capital hunters.

3. The Real Estate Secondaries Sizzle

Timestamps: 22:55–30:49

• What Are Secondaries?

  • The market for trading stakes in private real estate funds, offering long-locked-in investors a liquidity release valve.
  • “Secondaries more broadly have been a way for folks to get liquidity over time…” (B, 23:33)

• Why Heat Up Now?

  • Private real estate funds are active longer; distributions are slower, fundraising cycles are protracted.
  • “I heard of a large [real estate] fund… that has not made a carry distribution in seven years.” (B, 25:06)
  • Illiquid, opaque market means “face-saving” and shifting mandates drive sellers as much as economics.

• Key Players and Deals:

  • StepStone: $4B fund; Warburg Pincus and Madison: $300M new secondary fund.
  • “They’ve been doing it in corporate private equity as well. There are other firms that are known for doing this.” (B, 24:33)

• Discounts and Opaqueness:

  • Discounts (20–25% below NAV?) are common; sellers offload dog assets alongside gems; price discovery tricky.
  • “A lot of people… haven’t put real marks on things. This has been something that Mike Comparato has been railing about for a long time.” (B, 27:10)

• Face Saving and Institutional Behavior:

  • Organizational changes or mandate shifts (e.g., new CIO, allocator decides “no more NY office”) can trigger block-selling.
  • “A lot of what we see in these broader institutional markets is a function of face saving.” (A, 28:48)

• Smaller Secondaries & Restructurings:

  • Family offices (see: Alexa Raklin at Hob Mountain) targeting sub-$5M deals; many mid-market funds are struggling or in wind-down mode.
  • “There are a lot of mid-market private equity firms that aren’t going to exist, that have raised their last fund both in corporate and in real estate.” (B, 29:52)
  • “It might not be the right environment to exit an individual deal, but it may actually be the right environment to exit the poo poo platter of deals.” (B, 30:31)

Notable Quotes & Memorable Moments

• “There’s a reason Blackstone offsites never include fly fishing.” (A, 00:20)
• “Chad Pike… was co-head of real estate. When a young wizard called John Gray was running the Americas, this guy was running Europe.” (A, 08:42)
• “Vibes drive price.” (B, 04:30)
• “If you have these shallow bay things, what you can do is you can reset them to market.” (B, 05:33)
• “If you were to draw up somebody in a lab to raise private equity real estate funds… it would be Tyler Henrietti.” (B, 14:25)
• “You notice when I make ethnic jokes, Will gets really uncomfortable. So I do it a lot because I’m ethnic and he’s not.” (A, 16:53)
• “Nothing will ever beat Michael Milken with a giant headdress from five years ago…” (B, 17:15)
• “If in the Middle East you get to start from scratch, you can get pretty creative.” (A, 20:01)
• “Secondaries… the cold pizza of the allocator game.” (B, 01:18)
• “It’s really, you know, barbells all the way down. It might not be the right environment to exit an individual deal, but it may actually be the right environment to exit the poo poo platter of deals.” (B, 30:31)
• “Returns matter for fundraising? No, they do not.” (A, 28:48)

Important Timestamps & Segment Guide

• 02:17–15:27: Blackstone Cubs & Chad Pike’s Industrial Megadeal
• 16:27–22:38: Middle East: Gulf Shifts from Capital Source to Development Destination
• 22:55–30:49: Secondaries Market Heat, Technical Explainers, and Market Psychology

Tone & Style

• Trademark blend of technical rigor and playful banter.
• Real-world industry gossip and irreverent observations.
• Nuanced, non-hyped analysis of market mechanics, with plenty for both insiders and the curious layperson.

This episode is essential for anyone tracking commercial real estate power moves, understanding invisible market levers, or wanting a front-row seat to how the industry's biggest actors are rewriting the rules—in capital, geography, and liquidity alike.