Jay Massirman, Founder & CEO, Rivergate Companies / EDEN Multifamily

In an interview with Invest:, Jay Massirman, founder and CEO of Rivergate Companies and EDEN Multifamily, discussed the firm’s partnership-driven model, its focus on urban infill development, and the disciplined approach required in today’s market. “You have to have patient equity today,” Massirman said.

What is the core strategy behind Rivergate Companies and its focus on joint venture partnerships to drive growth and returns?

I formed Rivergate in 2007. Before that, I was vice chairman at CBRE for 20 years. So I have spent the majority of my career of 40 years in real estate. 

We form real estate partnerships and raise capital for our principal businesses, which are self-storage development, small bay industrial investment under Basis Industrial, multifamily development with Eden Residential, and strategic opportunistic investments for our family investment platform under Rivergate. 

Why has EDEN Multifamily shifted its focus toward urban infill development?

In the last cycle, we did several projects that were broader based around Florida, including some smaller towns and smaller cities. When the market slowed down, a lot of the secondary sites were not financeable. So we made a corporate decision to focus more on urban infill sites closer to denser cities, closer to highways and expressways, accessible to Transit (TOD sites), and in markets where institutional investors are active. 

What are the key growth markets you are targeting right now, and why?

For multifamily, our main markets are Orlando, South Florida, Charlotte, and Tampa. We also like Raleigh, Nashville, Atlanta, and other markets in the Carolinas, but Florida remains our main focus. Miami is home base and is growing exponentially.  Miami is an amazing city today. You have corporate relocations, a growing tech hub, a vibrant real estate market, tourism, great weather, and global interest in Miami. There are endless opportunities in real estate, especially in creating attainable housing.  

Many of your projects involve redeveloping underutilized retail or commercial sites. How do you identify and unlock value in those properties?

Yes, you must be creative today for sites. Virtually every site has to be “manufactured”. A lot has to do with the zoning. You can use Live Local or work with municipalities to determine the best way to serve the needs of the community. Redevelopment of existing uses is common. 

How has your diversification strategy helped the business navigate changing market conditions?

My diversification strategy has always been intentional and has always been part of my philosophy. Times change, trends change, and market conditions fluctuate. Especially coming from a global brokerage firm background, I got to understand product diversity and market cycles. Today, every project is a challenge due to high interest rates, construction costs, and land costs. You have to be more cautious in your approach to new projects. It is a highly sophisticated game today, and you really need to underwrite extremely carefully. You have to have patient equity. We did not develop in the last three years, but today we are far more active. 

On the diversification front, multifamily acquisitions and self-storage development were the first product types that my partners and I were focused on. This was followed by a partnership in multifamily development and then small-bay industrial acquisitions. I have been fortunate to have great partners in Basis Industrial and Eden Residential. 

Looking ahead, what are the top priorities for Rivergate,  EDEN and Basis over the next five years?

We need cooperation from the economy, lower interest rates, and hopefully less conflicts globally. Florida’s continued growth and evolution is critically important. 

For Basis Industrial, we will continue to grow the platform through strategic acquisitions. For EDEN, it is continuing to source solid BTR, condominium, and vertical multifamily sites. With Rivergate we will seek to expand our family holdings in value-add real estate and opportunities outside of real estate.