Commercial Corner: Gregory Kraut, co-founder and CEO of KPG Funds

Gregory Kraut

Gregory Kraut is the co-founder and CEO of KPG Funds, a fully integrated real estate investment platform at which he oversees the strategic direction of the company, asset management and leasing. He also is responsibe for maintaining and developing new client and capital partner relationships.

The company’s mission is to buy and reinvest in value-add, retail and mixed-use properties. To do this, Kraut and his team target underperforming, non-stabilized properties in New York City to generate value through capital improvements and strategic re-tenanting. Throughout his 20-year career in real estate, Kraut has represented owners and occupiers in transactions totaling more than 10 million square feet. Before KPG, Kraut was the founding principal and managing director of Avison Young’s New York office. Prior to Avison Young, Kraut was a senior executive at CBRE, the world’s largest real estate services company. Kraut graduated from George Washington University in 1997 with a Bachelor of Arts degree in the field of International Relations and Affairs.

How long have you been in the industry?

I have been in the New York City commercial real estate industry since 1997.

Who inspires youand why?

There are several people who inspire me, but the largest inspiration in my life was my high school English teacher Mr. Rolenhagen. He came to school every day with a smile on his face and the desire to help every student in his classroom. I want to come in every day and know that I will help those around me and be able to smile throughout the day. I believe in these tumultuous times, the CEO role is one where I will do that every day for both our employees and partners.

What do you think makes KPG unique or different?

We invest in the high-barrier-to-entry New York City office building market. We have cultivated a proven strategy and a robust portfolio of ultra-luxury boutique office assets that have weathered the storm through market cycles. Focusing on high-demand areas and building luxury boutique office products has enabled us to maintain above market demand while outperforming our underwritten rents and our market competition.

How important is design in creating value in office properties?

Design sits at the apex of KPG’s “Inspired Luxury Product.” Our design-forward brand attracts and retains the modern-day workforce. We collaborate with top designers to deliver our tenants a unique but functional bespoke workplace experience. KPG oversees each project through design, development, management and leasing with precision and direct management. KPG targets architecturally significant but aging Class B and C properties that are underfunded which require significant capital and modern-day design and function.

Gregory Kraut Co-founder and CEO of KPG Funds

What investmenttrends are you seeing in New York City?

KPG fills an institutional niche in the NYC boutique, non-commodity office building market. This investment strategy offers strong opportunities to add value and generate high returns. There is trending positive demand and low supply in the locations and type of product that we offer.

What advice do you have for someone starting out in real estate?

Where you are right now isn’t where you’ll end up, and just keep moving forward. Where you are in this moment isn’t where you’ll be forever. Things will change. Something out of your control will happen. Next thing you know, your feet will land somewhere better. The key is to always move forward, no matter what.