Q&A with Andy Bernard of Left Lane Development
Partner / Chief Investment Officer
Luminary Series:
LEFT LANE is a New York-based, vertically integrated investment manager, developer and hotel brand creator founded in 2021, led by Managing Partner Jon Kully, whose predecessor firm, Flank, has a 20+ year track record of executing historic office-to-hotel and multifamily conversions. The team brings deep expertise across development, acquisitions, and operations in luxury multifamily and hospitality assets. Its current vehicle, Fund III, has assembled a portfolio of five iconic, distressed historic office buildings that are being converted into market-leading luxury hotels and multifamily residences.
The firm has already put this approach to work, most notably with Hotel Bardo Savannah, which opened in February 2024 and was named one of the best hotels in the world by both Travel + Leisure and Condé Nast Traveler. Its lifestyle brand, Recess Hotel & Club is set to open its flagship location in Savannah in Q3 2026. Ultimately, Fund III aims to deliver compelling capital appreciation with strong downside protection for its investors, driven by a significantly discounted cost basis and a target portfolio-level 3.0x MOIC and 30% IRR.
Join us for a private Family Office Insights Webinar featuring Andy Bernard, Partner and Chief Investment Officer at LEFT LANE. LEFT LANE is a vertically integrated investment manager, developer and hotel brand creator targeting the generational dislocation in the office market, acquiring distressed historic office buildings and transforming them into luxury hotels and multifamily residences in high-growth secondary markets. The strategy is anchored by a cost basis built 30-40% below replacement cost through proprietary off-market deal sourcing, historic tax credits, and two decades of specialized development expertise.
Fund III is targeting a 3.0x MOIC and 30% IRR gross across five assets already under execution. Andy brings 20+ years of hospitality investment experience, including as Head of Development at Equinox Hotels and in structured finance at Morgan Stanley, where he executed over $18 billion in CMBS transactions. He holds an MBA from the Wharton School.
May 05, 2026 at 2:15pm-3:15pm EST
RSVP & Confirmation Required
Investors Only Please!
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Can you explain how the Historic Tax Credit program works and whether there is any political risk investors should be aware of?
The Historic Tax Credit program works through three approval stages. Part I incorporates the property onto the national register of historic properties. Part II approves the intended design and project scope. Part III verifies the project was completed according to plan. The credits are valued at 20% of qualified renovation expenses at the federal level, with state programs providing up to an additional 25%, and are monetized through sale to tax credit buyers at 75 to 90 cents on the dollar. 20% to 30% of the total credit value comes in at loan closing, with the balance paid out upon Part III approval.
On the political risk side, the program is one of the most durable incentives in the federal tax code, having survived every major tax reform cycle since 1986 because it enjoys broad bipartisan support. It drives job creation and economic revitalization across both red and blue states, and has attracted support from real estate developers and legislators across the political spectrum. Once a project receives its Part I approval, the credits carry no further legislative risk. LEFT LANE has deep experience navigating this process, having successfully completed historic renovations in New York, Savannah, and Nashville, and actively engages with state legislators across its target markets to support and expand state-level programs.
For a company based in New York City, why are you investing in secondary markets like Savannah, Phoenix, and Pittsburgh instead of gateway cities like New York?
The short answer is that's exactly where the opportunity is. Gateway cities are saturated with high supply, intense competition, and union risk that adds significant cost unpredictability to any construction project. Our focus markets like Savannah, Pittsburgh, Providence, Phoenix, and Memphis are seeing affluent population income growth of 95% over five years, outpacing what Austin, Denver, and Nashville saw at their peak, yet have virtually zero new luxury hotel or multifamily supply in the pipeline. That gap between rising demand and lack of supply is what drives rate leadership and strong returns. Secondary markets are also where historic tax credits and government incentives are most generous, giving us a structural cost advantage that simply doesn't exist in primary markets.
Phoenix is a strong example of the broader tailwind we are seeing across our markets. TSMC (Taiwan Semiconductor Manufacturing Company), the world's most critical semiconductor manufacturer, has committed $165 billion in investment in the Phoenix area, bringing an enormous wave of high-paying jobs that directly translates into sustained demand for luxury hotels and high-end multifamily housing, which is exactly what we are building.
Besides the Historic Tax Credits, which are sold to round out the capital stack, are there any other tax benefits that flow through to your investors?
Real estate is one of the most tax-efficient asset classes available, and Fund III is structured to take full advantage of that. When our projects are placed in service, we conduct cost segregation studies that allow us to front-load depreciation through bonus depreciation, generating significant ordinary losses in the early years of the investment. These losses can be used to offset income from an investor’s other investments or carried forward to offset future gains on this investment. When assets are eventually sold, depreciation is recaptured at lower tax rates, which creates not only a tax deferral but a genuine tax arbitrage, and the combination of timing and rate differential results in meaningful net tax savings relative to other asset classes. The specific benefit varies by investor tax profile and should be reviewed with your tax advisor.
