Kaufman & Company: Family Offices Should Fill Retrade Gap

Daniel Kaufman, founder and CEO of Kaufman & Company, a family office and permanent capital holding company, says the recent wave of commercial real estate retrades following the Federal Reserve’s September rate hike is separating investors who can close from those who cannot—and family offices investing their own money should step into that gap. The Fed raised its benchmark rate by a quarter point on Sept. 16, and minutes released Oct. 7 indicated most officials expect another increase by year-end. Since then, buyers have been pressing to renegotiate deals signed earlier in 2026, with some threatening to walk away, according to reports from The Wall Street Journal and trade outlets including CRE Daily and Citybiz. Trepp data cited in that coverage show 11.42% of CMBS loans were with special servicers in August, the highest share since February 2013.

“A retrade is a buyer telling a seller the deal was really a bet on the rate,” Kaufman said. “When the rate moves, the price moves, and everyone downstream waits. The sellers, contractors and towns counting on those projects carry that uncertainty. We invest our own capital, so our underwriting has to work without assuming the next Fed decision goes our way.” Kaufman said the moment favors long-term owners over buyers whose returns depend on a narrow financing window, particularly in housing, where a stalled closing can delay construction and leave homes unbuilt. “This is when family office capital should earn its keep,” he said. “We are not looking to win by grinding down a seller who negotiated in good faith. We want to be the partner people can count on at the closing table, because on a housing deal a delay is not a line item; it is fewer homes for the people who need them.”

Kaufman & Company invests only its own capital and does not raise outside funds. Its operating companies span housing development, design and construction, real estate consulting and venture investment. This month the company announced BUILD 2030, a national initiative coordinating its housing, real estate and AI infrastructure work. The firm’s platform includes 10 operating companies—Convivium Living, DanReDev, DEK Builds, Design Build Affordable, DK Homes, Forge Development Partners, Kaufman Development, Kaufman Real Estate & Consulting, LoneStar Kaufman and Kaufman Ventures—and represents more than $2 billion in project value and over 10,000 housing units across 25 years. For more information, visit thekaufmanco.com.