Season 3 of the No Cap podcast continues as co-hosts Jack Stone and Alex Gornik sit down with Jon Siegel, Partner and Chief Investment Officer at Railfield Realty Partners. Jon helped launch Railfield in 2013 with institutional backing from New York’s Common Retirement Fund—an uncommon starting point in a business where most firms grind for years raising syndication capital.
With experience as a lender at Fannie Mae, a principal at one of the country’s largest multifamily owners, and now a portfolio manager with roughly $500M under management, Jon shares what it takes to survive market cycles, why private credit isn’t quite the “once-in-a-lifetime” play some claim, and how to buy in today’s bifurcated multifamily market.
Conversation Highlights
Alex: Give us the Railfield origin story.
Jon Siegel: We like to say we started on third base. Most companies start by calling everyone they know to raise money. We were handed $50M from an emerging manager program run by Artemis Real Estate Partners and New York Common. We bought a few properties in Texas, but learned quickly that other pension funds don’t line up to give three guys in a room more money without a track record.
This kind of launch is rare in multifamily. Jon notes that most operators grind for years cobbling together syndication dollars before they see institutional checks, and that early money brought both credibility and pressure to prove themselves.
Jack: You’ve talked about being in both the institutional and private capital worlds. What’s that like now?
Jon Siegel: Back then, I had deals but no money. Now I have capital but can’t find deals. Our sweet spot is workforce housing—60% to 120% of area median income—in markets our data model scores well. Lately, we’ve been doing some preferred equity lending at 13–14% IRR when the opportunity makes sense, but I question how many of those deals truly exist.
Alex: Everyone says there’s distress coming. Do you see it?
Jon Siegel: People expected a wave of maturities to force sales, but private credit lenders have been smart—they’re holding loans instead of taking losses so someone else can make a fortune. That’s created a stalemate. The ones really getting hurt right now are common equity investors in 2021-era deals. Many are being wiped out.
Everybody is a six cap buyer in a five cap market.
Jack: So what’s worth buying right now?
Jon Siegel: Not much, but we stay in the game. If you read about a deal in CRE Daily, it’s already too late. Some 10-year-old properties with no renovations are getting 60 offers—everyone wants them. Older vintage deals are harder, but if you can buy at the right basis, say $75K a unit, it’s hard to lose. Every deal is different.
For Jon, that means shadowing deals through sellers’ “seven stages of grief” until pricing meets reality, and being ready to move when it does.
If you read about it somewhere, it’s too late.
Alex: You ever have a near-miss early in your career?
Jon Siegel: I almost joined Starwood at the very beginning. Timing and a safer offer pulled me away. My dad told me to take the bird in hand. Starwood did fine without me.
It’s a reminder that in real estate, career-defining opportunities often come down to timing as much as skill.
Jack: How’s Railfield’s portfolio positioned now?
Jon Siegel: No bridge loans, no variable-rate debt since 2021. We run three main buckets: affordable preservation with Citi as LP, core/value-add with GCM Grosvenor, and long-term core holds with a family office. About $500M under management. We’re long-term bullish on multifamily—shortage of affordable housing, strong demographics—but think the real upside is 2+ years out.
Alex: What’s the investor mindset you’re seeing?
Jon Siegel: Institutions focus hard on exit cap rates now. Two years ago, everyone manipulated that number. Today, they know it matters. Deals are few and far between—we might look at 100 to find one that works.
Jack: What’s your hope for the next year?
Jon Siegel: Stability. Not a return to 2021, just predictable inputs so capital starts moving again. Multifamily is fragmented enough that opportunities will always be there, but we need the market to function.
Time heals all wounds in real estate.
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