NationMaster - Encyclopedia: Larry Silverstein

Larry A. Silverstein (born 1932) is an American billionaire real estate investor and operator and the head of Silverstein Properties, a real estate development group. Silverstein is also a member of New York University's Board of Trustees. Silverstein was the leaseholder of the World Trade Center property at the time of the September 11, 2001 attacks and currently oversees its reconstruction. Image File history File linksMetadata Download high resolution version (1704x2272, 1893 KB) Summary WTC7 Photo taken on January 16, 2006. ... Image File history File linksMetadata Download high resolution version (1704x2272, 1893 KB) Summary WTC7 Photo taken on January 16, 2006. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... New York University (NYU) is a private, nonsectarian, coeducational research university in New York City. ... For other uses, see World Trade Center (disambiguation). ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11â€”pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly...

Background

Larry Silverstein was born in Bedford-Stuyvesant, Brooklyn, New York. He graduated from New York University in 1952, and married in 1956. He also attended classes at Brooklyn Law School. He and his wife, Klara, have three children: Lisa, Roger and Sharon. Bedford Stuyvesant (aka Bed-Stuy) is a neighborhood in central Brooklyn, New York City. ... This article is about the borough of New York City. ... This article is about the state. ... New York University (NYU) is a private, nonsectarian, coeducational research university in New York City. ... Brooklyn Law School Brooklyn Law School (BLS) is a law school located in downtown Brooklyn, New York. ...

Silverstein became involved in real estate, together with his late father, Harry G. Silverstein, and then friend and brother-in-law, the late Bernard Mendik, buying buildings in Manhattan. In 1957, they established Silverstein Properties, as Harry G. Silverstein & Sons, and bought their first building. Mendik and Silverstein continued the business after Harry's death in 1966. In 1977, Mendik divorced Annette Mendik Silverstein, with the business partnership also splitting up at that time.^[1] Mendik also cited disagreements over real estate strategies, with Mendik wanting to buy buildings while Silverstein wanted to build.^[2]

World Trade Center lease

7 World Trade Center

In 1980 Larry Silverstein won a bid to lease and develop the last undeveloped parcel from the Port Authority of New York and New Jersey to build the 47-story 7 World Trade Center. 7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. ... Tolls collected at the Holland Tunnel and other crossings help fund the Port Authority. ... 7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. ...

World Trade Center

During the 1990s, New York was suffering from the effects of the 1987 stock market crash leading to high vacancy rates at the World Trade Center. George Pataki became Governor of New York in 1995 on a campaign of cutting costs, including privatizing the World Trade Center. A sale of the property was considered too complex, so it was decided by the Port Authority to open a 99-year lease to competitive bidding.^[3] For other uses, see World Trade Center (disambiguation). ... DJIA (19 July 1987 through 19 January 1988). ... George Elmer Pataki (born June 24, 1945) is an American politician who was the 57th Governor of New York serving from January 1995 until January 1, 2007. ... This is a list of the Governors of New York. ...

In January 2001, Silverstein, via Silverstein Properties and Westfield America, made a $3.2 billion bid for the lease to the World Trade Center. Silverstein was outbid by $50 million by Vornado Realty, with Boston Properties and Brookfield Properties also competing for the lease. However, Vornado withdrew and Silverstein's bid for the lease to the World Trade Center was accepted on July 24, 2001, seven weeks before the buildings were destroyed in the September 11, 2001 attacks. This was the first time in the building's 31-year history that the complex had changed management. The Westfield Group ASX: WDC is an Australian-owned company that owns shopping centers in Australia, New Zealand, the United Kingdom, and the United States. ... Vornado Realty Trust NYSE: VNO is a New York based Real estate investment trust. ... A well respected, self managed real estate investment trust (REIT) based in Boston, Massachusetts. ... Brookfield Properties Corporation TSX: BPO NYSE: BPO is a Toronto-based North American commercial real estate company. ... is the 205th day of the year (206th in leap years) in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11â€”pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly...

The deal was described in a press release on July 24, 2001: is the 205th day of the year (206th in leap years) in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ...

The lease agreement applied to One, Two, Four and Five World Trade Center, and about 425,000 square feet (39,500 m²) of retail space. Silverstein put up only $14 million of his own money.^[5] Silverstein was also given the right to rebuild the structures, should they be destroyed.^[6]

Other projects

While Silverstein is most famous for his involvement at the World Trade Center, his real estate holdings include many other buildings in New York City. New York, New York and NYC redirect here. ...

As of 1978, Silverstein owned five buildings on Fifth Avenue, as well as 44 Wall Street, and a shopping center in Stamford, Connecticut.^[1] In 1980, he bought the building at 120 Wall Street, which was constructed in 1930. Also in 1980, he renovated the building at 11 West 42nd Street, acquired the lease for the Equitable Building at 120 Broadway. Street sign at Fifth Avenue and East 57th street Fifth Avenue is a major thoroughfare in New York City. ... Nickname: Location in Connecticut Coordinates: , NECTA Region Settled 1641 Incorporated (city) 1893 Consolidated 1949 Government - Type Mayor-Board of representatives - Mayor Dannel Malloy (Dem) Area - City 134. ... The Equitable Building, viewed from street level The Equitable Building is a famous 36-story office building at 120 Broadway in the Financial District of Lower Manhattan in New York City. ...

Silverstein was also involved as a developer of the Ronald Reagan Building in Washington, D.C. A real estate developer (American English) or property developer (British English) makes improvements of some kind to real property, thereby increasing its value. ... The Ronald Reagan Building and International Trade Center, named after the 40th president of the United States, is the first federal building in Washington, D.C. designed for both governmental and private sector purposes. ... For other uses, see Washington, D.C. (disambiguation). ...

In November 2006, Silverstein agreed to buy the building at 99 Church Street from Moody's for $170 million.^[7] Moody's is slated to move its headquarters into 7 World Trade Center in 2007. 99 Church Street, built in 1951, contains 441,000 square feet (41,000 m²) of space.^[8] Depending on market demands, the building may continue to be used as office space or as a mixed-use structure, which would also include apartments.^[8] 7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. ... Mixed-use development refers to the practice of containing more than one type of use in a building or set of buildings. ...

In 1989 Silverstein proposed to members of the Israeli government that a Free-Trade zone should be created within the Negev region of Israel. The project ultimately failed, however it enjoyed popular support amongst leading Israeli political figures. ^[9]

September 11, 2001 attacks

Dispute with insurers

As a private developer with a 99-year lease on the World Trade Center, Silverstein insured the property. Following the September 11, 2001 attacks, he sought payment for the destruction of the towers as two incidents. The two dozen insurers held that it was one incident. If it were considered to be a single incident, the payout would be $3.55 billion and if it were two incidents, it would be $7.1 billion. Silverstein sued the insurers. In October of 2006, the U.S. Court of Appeals for the Second Circuit upheld a Southern District verdict by a jury that the attacks must be considered a single occurrence. Yet, the same court also upheld a victory in the second phase of trial which was awarded to Mr. Silverstein in which temporary insurance policies in effect when the buildings were destroyed did require that the attack be treated as two occurrences. Thus, nine insurance companies will pay double the approximately $1 billion in coverage under their policies.^[10] is the 254th day of the year (255th in leap years) in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ...

On December 6, 2004, a federal jury ruled in favor of Silverstein giving him an additional $1.1 billion from nine insurers, declaring it to be two "occurrences". ^[11] However, in a previous trial, a different federal jury delivered a mixed verdict which highly favored insurers on April 29, 2004 ^[12] is the 340th day of the year (341st in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 119th day of the year (120th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

At dispute in the trial were interpretation of standard forms used in the application for property insurance and when particular insurers saw which documents.^[13]

In total, Silverstein was awarded nearly $5 billion in insurance money following the destruction of the Twin Towers ^[14]. He plans to use some or all of the settlement to rebuild. ^[15] The World Trade Center had a total of 24 insurance policies. In 2007, 6 years after the attacks, Silverstein and the Port Authority of New York and New Jersey filed a $1 billion lawsuit ($250 million in unpaid claims and $750 million in damages) against Royal & Sun Alliance Group Plc and its U.S. affiliate.^[16]

Silverstein's lease with the Port Authority for the World Trade Center requires him to continue paying $102 million annually in base rent.^[17] He is applying insurance payments toward the redevelopment of the World Trade Center site.^[18] Tolls collected at the Holland Tunnel and other crossings help fund the Port Authority. ...

Negotiations to rebuild at the World Trade Center site

Silverstein had the legal right to rebuild office buildings including the Freedom Tower at the World Trade Center site and while the site is unoccupied, he continues to pay $10 million per month in rent to the Port Authority of New York and New Jersey. After several months of negotiation, in April 2006 he yielded some of those rights back to the Port Authority. Proposal for Rebuilt Twin Towers, from Triroc. ... For the building in Miami, Florida of the same name, see Freedom Tower (Miami). ... The World Trade Center site destruction, 2001 The World Trade Center site is the 16 acre (65,000 mÂ²) real estate on which the WTC complex stood in New York until the September 11, 2001 attacks. ...

Ground was broken on the construction of the Freedom Tower on April 27, 2006. ^[19] Lack of financing had prevented construction from commencing earlier. The proceeds of the insurance payments from the destruction of the previous buildings alone were insufficient to cover the cost of rebuilding all the planned buildings. is the 117th day of the year (118th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

After the September 11, 2001 terrorist attacks, the United States Congress approved $8 billion in tax-exempt Liberty Bonds to fund development in the private sector at lower-than-market interest rates. $3.4 billion remained unallocated in March 2006 designated for Lower Manhattan, with about half of the funds under the control of Mayor Michael Bloomberg and the other half under the control of former Governor George Pataki. The World Trade Center on fire The September 11, 2001 attacks were a series of coordinated terrorist attacks against the United States on September 11, 2001. ... Type Bicameral Houses Senate House of Representatives President of the Senate President pro tempore Dick Cheney, (R) since January 20, 2001 Robert C. Byrd, (D) since January 4, 2007 Speaker of the House Nancy Pelosi, (D) since January 4, 2007 Members 535 plus 4 Delegates and 1 Resident Commissioner Political... Liberty bonds are a special type of war bonds that were sold to support the allied cause in World War I. It could be redeemed for the orginal value of the bond with interest. ... Woolworth Building, looking south along Broadway Lower Manhattan, from the Brooklyn Bridge, 2005 Rigid airship the USS Akron over Lower Manhattan Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York. ... Michael Rubens Bloomberg (born 14 February 1942) is an American businessman, founder of Bloomberg L.P., and the current Mayor of New York City. ... George Elmer Pataki (born June 24, 1945) is an American politician who was the 57th Governor of New York serving from January 1995 until January 1, 2007. ...

Negotiations were held to obtain concessions from Silverstein in exchange for allocating the Liberty Bonds to the World Trade Center rebuilding. The concessions were to give back to the Port Authority rights to build and operate the Freedom Tower and another office tower, a share of the insurance payments, and not to contest the allocation to the Port Authority of Liberty Bonds. The Port Authority, a public agency, already has the ability to issue its own tax-exempt debt. The Port Authority will have its proposal in final form in September 2006. In return, the Liberty Bond funds were allocated to Silverstein and government agencies will be anchor tenants in his three office towers. This allows construction to commence.

In March of 2007 Silverstein appeared at a rally of construction workers and public officials outside of an insurance industry conference to highlight what he describes as the failures of insurers Allianz & Royal and Sun Alliance to pay $800 million in claims related to the attacks. Insurers cite an agreement to split payments between Mr. Silverstein and the Port Authority as a cause for concern.^[20]

In summary, Silverstein retains rights for Towers Two, Three, and Four. The Freedom Tower (designated as Tower One) will be owned by the Port Authority as well as Tower Five which may be leased out to another private developer and redesigned as a residential building.^[21]

References

^ ^a ^b Silverstein Properties, Inc. - Company History. Fundinguniverse.com.
^ Salmans, Sandra. "Putting together city's biggest apartment deal", New York Times, January 28, 1985.
^ Goldberger, Paul (2004). Up From Ground Zero. New York: Random House, p.28. ISBN 1-4000-6017-6.
^ 'Governor Pataki, Acting Governor Difrancesco Laud Historic Port Authority Agreement To Privatize World Trade Center' Port Authority Press Release, July 24, 2001
^ 'Double Indemnity: Was the WTC disaster one incident or two?' Alison Frankel, The American Lawyer, September 3, 2002
^ Goldberger, Paul (May 20, 2002). "Groundwork: How the future of Ground Zero is being resolved.". The New York York.
^ Hess, Diane. "Moody's to sell headquarters to Silverstein", New York Business, November 21, 2006.
^ ^a ^b "In Brief", Newsday, November 22, 2006.
^ [1] Up In Smoke - Haaretz
^ Hamblett, Mark. "Circuit Resolves Distribution Of 9/11 Insurance Proceeds", New York Law Journal, October 19, 2006. [2]
^ Starkman, Dean. "Jury Rules for Silverstein on Trade Center Insurance", Wall Street Journal, December 7,2004, p. A11.
^ Starkman, Dean. "Jury's Decision Leaves Rebuilding of World Trade Center in Turmoil", Wall Street Journal, April 30, 2004, p. A1.
^ Jenkins, Jr., Holman. "The Importance of Being Larry", Wall Street Journal, March 6, 2002, p. A17.
^ . 'Charges Of Greed Surface Following Breakdown Of WTC Talks', NY1 News, March 15 2006
^ [3] 4.65 billion reasons why I should rebuild
^ WTC Developer to Get Additional $12.5M Payment from Insurer TIG, Commercial Property News, Barbra Murray, March, 2007
^ 2001 Annual Report. PANY (2002, April 23).
^ WTC Developer to Get Additional $12.5M Payment from Insurer TIG, Commercial Property News, Barbra Murray, March, 2007
^ Construction Begins at Ground Zero, Washington Post, April 28, 2006
^ Silverstein Lashes Out Against WTC Insurers, Special to the New York Sun, March 13, 2007
^ Freeing us from Freedom Tower Nicole Gelinas, City Journal, Autumn 2006

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External links

Categories: 1932 births | Living people | American people | American billionaires | American businesspeople | American Jews | Jewish businesspeople | New York University alumni | People from Brooklyn | Businesspeople in real estate | September 11, 2001 attacks | World Trade Center For other uses, see World Trade Center (disambiguation). ... Minoru Yamasaki (December 1, 1912 â€“ February 6, 1986) was an American architect best known for his design of the World Trade Center. ... View of the World Trade Centers construction from across the Hudson River The construction of the World Trade Center was conceived as an urban renewal project, spearheaded by David Rockefeller, to help revitalize Lower Manhattan. ... For the second attack on the World Trade Center in 2001, see September 11, 2001 attacks. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11â€”pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... Ground Zero debris with markup showing building locations. ... Tolls collected at the Holland Tunnel and other crossings help fund the Port Authority. ... The World Trade Center has been featured in numerous films, as well as made appearances in many television shows, cartoons, comic books, and computer/video games. ... Marriott with Twin Towers, July 2001 The Marriott World Trade Center Hotel was a 22-story[1] steel-framed building with 825 rooms. ... World Trade Center 4 was a 9-story low-rise office building in the southeast corner of the site, in Lower Manhattan, New York City. ... 5 WTC, upper right corner. ... 6 World Trade Center was the U.S. Customs House: a 537,693 square foot (49,953 m²), 7 story low rise building, in Lower Manhattan, New York City. ... 7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. ... Late-night and weekend service: The World Trade Center PATH station, originally opened on July 19, 1909 as the Hudson Terminal. ... The World Trade Center site destruction, 2001 The World Trade Center site is the 16 acre (65,000 mÂ²) real estate on which the WTC complex stood in New York until the September 11, 2001 attacks. ... For the building in Miami, Florida of the same name, see Freedom Tower (Miami). ... A rendering of the new World Trade Center as completed. ... A rendering of the new World Trade Center as completed. ... A rendering of the new World Trade Center as completed. ... The unofficially named World Trade Center Tower 5 is a proposed building in New York City. ... In August 2006, the World Trade Center Memorial Foundation and the Port Authority of New York and New Jersey began construction on the Memorial and Museum. ...

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