The Promote Podcast: "Exotic Alts (w/ SomeraRoad's Ian Ross) & Taconic's Lab Leak"

Date: December 17, 2025
Hosts: Hiten Samtani ("Bard of CRE"), Will Krasne
Guest: Ian Ross, Founder of SomeraRoad

Episode Overview

In this episode, Hiten and Will take listeners into the evolving landscape of “exotic alternative” asset classes in CRE (Commercial Real Estate)—from car washes to aviation hangars and marinas—shedding light on why these previously niche real estate verticals are suddenly seeing heavy institutional interest. They delve into the impact of recent U.S. tax legislation, dissect how depreciation incentives are warping transaction dynamics, and explore the behind-the-scenes ground game needed to execute large-scale plays in fragmented markets.

The show’s second act spotlights Taconic’s ill-fated $2B bet on NYC’s life sciences real estate, unpacking how a pandemic-era ‘sure thing’ can unravel in spectacular and instructive fashion.

Key Discussion Points & Insights

1. The Rise of "Exotic Alts" in CRE

[00:38–06:05]

• Definition: Once seen as “rinky dink,” asset classes like car washes, aviation hangars, marinas, and gas stations are now targeted by institutional capital.
• Catalyst: Recent tax law changes (referred to as the “big beautiful bill”) have reignited 100% bonus depreciation for certain property types—meaning investors can write off the majority of an asset’s value in the first year.
• Investor Strategy: High-net-worth individuals (HNWI) and those with big equity event gains (e.g., from AI stocks) are seeking these investments to sharply reduce federal tax bills.

Notable Quotes:

• Will Krasne [02:02]:
  “As Stephan might say, New York’s hottest club is tax shelters. ... It really poured gas—Constantine—on the fire for a couple of these asset classes that have 100% bonus depreciation you’re able to pull forward in year one.”

• Hiten Samtani [03:03]:
  “How do you roll up your mega gains from Nvidia or what have you and put it into these, like, rinky dink things?”

Transaction Impact Example:

[04:20–05:12]

• A $5M car wash in Miami sold at $1,600 per square foot—a “staggering number.” With bonus depreciation:
  • $1M allocated to land.
  • $4M is 100% depreciable in year one.
  • Result: A top-bracket investor could see 7-figure federal tax savings—hence prices climbing 25% in 6 months after the bill passed.

Notable Quote:

• Hiten Samtani [04:50]:
  “What the fuck? Wow.”

2. Spotlight Interview: Ian Ross on Private Aviation Real Estate

[08:17–19:33]

Who is Ian Ross?

• Founder of SomeraRoad; background in distressed debt acquisition (Triangle Assets, post-GFC), now prominent developer with major ongoing Nashville projects.
• Today’s focus: SomeraRoad’s aviation infrastructure ground game (“Mile High Club”).

Why Hangars?

• Hangars are leased on ground leases at airports. With new rules, 100% of the value is depreciable because there’s “no carve out for land.”
• The “ramp” (concrete area) is considered a land improvement—also fully depreciable in year one.

Notable Quotes:

• Ian Ross [09:14]:
  “What’s unique about private jet hangars… is they sit on ground leases ... when you have a ground lease, there’s no carve out for land. So 100% of the asset is depreciable …”

• Ian Ross [11:54]:
  “You don’t park your Ferrari in your driveway. Well, you don’t park your Global on the ramp. ... It’s your most prized possession.”

Market Dynamics & Demand

• Massive demand: 10-year waitlists for hangar space are common in populous markets.

• Inelasticity: Rents can be raised without much pushback, due to the ultra-high-net-worth clientele and limited supply (airports aren’t making new land).

• Ian Ross [12:33]:
  “The real estate that caters towards this demand—it’s like beachfront property. You can’t build more of it.”

Acquisition & Roll-Ups

• Market fragmentation: No Newmark or Eastdil equivalent for hangars; acquisitions are ground-up and often from mom-and-pop owners.
• SomeraRoad: $300M in assets, $600M in pipeline.
• Politics: Public airports, FAA regulation (max 50-year ground leases, commonly 40), and local government interests make these deals complex and sometimes risky at lease termination.

Who are the institutional end-buyers?

• Major roll-up activity: KKR, Apollo, Blackstone, KSL, Cascade, etc., often via infrastructure funds and public vehicles (Sky Harbour SPAC mentioned).

• Will Krasne [17:46]:
  “There was an asset that had $400 million of year one depreciation … it was the deepest bid sheet I’ve seen in five years. … Every single billionaire family office looking to offset AI gains.”

Fun Anecdotes

• Ian Ross [19:19]:
  “Owning 37 private jet hangars on the Las Vegas strip brings out a full cast of characters from casino owners to high rollers.”

3. Taconic's Life Sciences Misadventure ("Lab Leak")

[19:49–31:49]

The Bet

• Following the pandemic, Taconic invested $2B+ on repurposing NYC office assets as life sciences labs via Elevate Research Properties—convinced life sciences was a “can’t miss.”
• Lots of public-sector tailwinds (Cornell Tech, city funds) and historic successes in Boston/San Diego.

What Went Wrong?

• Buildout for labs is costly and specialized; tenant demand in NYC proved illusive.

• Alexandra Real Estate Equities (market leader in the space) saw its stock drop 74% over five years.

• NYC had only ~433,000 SF of leasing volume at peak enthusiasm (“That’s like one law firm moving.”), yet vacancy now is 27% on ~3 million SF inventory.

• Will Krasne [21:33]:
  “There’s been zero leasing activity in their portfolio ... that just didn’t work out. Tons of capital came into the space.”

Dissecting the Deals

• Taconic raised institutional capital for multiple conversions (Hudson Research Center, West End Labs, Iron Horse).

• Equity partners (Silverstein, LaSalle) and lenders (Square Mile Capital) are now facing major write-downs.

• Hiten Samtani [26:13]:
  “They might be building for Moderna, but what you really need is space that’s cheap and flexible and built to suit for startup to plug and play, basically.”

• Will Krasne [29:05], quoting a departing exec (Perkins & Will):
  “I’m returning with a sharper understanding of the economic, technical and regulatory challenges that our clients are navigating. … If you can learn on someone else’s dime, that’s great.”

Behind the Curtain

• Many NYC “innovations” are driven by shifting priorities within family real estate firms (e.g., Silverstein’s new leaders wanting to expand the company’s scope).

• OPM (“other people’s money”): Taconic demonstrated sophisticated narrative-building, raising for ventures that see much of the risk externalized via JV and LP partners.

• Will Krasne [31:04]:
  “A lot of these old office landlords … took out five times the building’s value in cash over the last 20 years. Like, don’t cry for them.”

Notable Quotes & Memorable Moments

• On the Tax-Led Asset Surge:
  Will Krasne [02:02]:
  “New York’s hottest club is tax shelters. … this place has everything.”

• On Car Washes as Institutional Investments:
  Hiten Samtani [04:50]:
  “What the fuck? Wow.”

• On Hangar Value:
  Ian Ross [12:33]:
  “The real estate that caters towards this demand—it’s like beachfront property. You can’t build more of it.”

• On NYC Lab Space Reality:
  Hiten Samtani [24:20]:
  “That’s like wild Gottschall moving. … New York is still very much a fire town.”

• On OPM and Developer Returns:
  Will Krasne [31:04]:
  “Don’t cry for them. … these kinds of returns matter. We’re talking about the difference between a 7 and a 0 is pretty big.”

Segment Timestamps

• 00:38–06:05: The exploding market for exotic CRE alts (car washes, marinas, hangars), bonus depreciation mechanics, and tax-driven buying frenzy.
• 08:17–19:33: Interview with Ian Ross—how and why SomeraRoad dove deep into private aviation real estate.
• 19:49–31:49: Detailed post-mortem on Taconic’s failed $2B life sciences push in New York, lessons in asset class fads, institutional capital flows, and operator “skin in the game.”
• Key quotes and takeaways: Scattered throughout, see bolded boxes above for highlight moments.

Takeaways for CRE Insiders

• Government incentives (bonus depreciation, etc.) drive tidal shifts in CRE capital flows toward asset classes that were, until recently, considered “niche” or “mom and pop.”
• Fragmented markets (like hangars and marinas) require relentless ground-game development—there’s no Eastdil/CBRE for these deals.
• Even with “can’t lose” narratives (NYC life sciences, post-COVID), CRE innovation is risky, and late-cycle institutional plays can end in public write-downs.
• The ultimate winners in the institutional gold rush are often those adept at using OPM, crafting compelling narratives, and exiting positions ahead of hard times.

To learn more about the hosts or sign up for The Promote newsletter, visit thepromote.com.