The Liar's Ball E-Book

Vicky Ward

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2014

Seitenzahl: 385

Beschreibung

Inside the world of the real Great Gatsby of New York real estate Harry Macklowe is one of the most notorious wheelers and dealers of the real estate world, and Liar's Ball is the story of the gamblers and thieves who populate his world. Watch as Harry makes the gutsy bid for midtown Manhattan's famous GM building and put almost no money down, landing the billion-dollar transaction that made him the poster child for New York's real estate royalty. Listen in on the secret conversations, back-door deals, and blackmail that put Macklowe and his cronies on top--and set them up for an enormous fall. Vanity Fair contributing editor Vicky Ward skillfully paints the often scandalous picture of the giants who owned the New York skyline until their empires came crumbling down in the 2008 financial crisis. Based on more than 200 interviews with real estate moguls like Donald Trump, William Zeckendorf, Mort Zuckerman, and David Simon, Liar's Ball is the never-before-told story of the egomaniacal elites of New York City. Read about: * The epic rise and fall of one of the richest American real estate barons * Outlandish greed and cravings for power, attention, and love * Relationships built and destroyed by vanity and gossip * The bursting of the real estate bubble and its aftermath This is no fiction--this is a real life tale of extravagance, ambition, and power. Harry Macklowe ruthlessly clawed his way to the top with the help of his loyal followers, each grubbing for a piece of the real estate pie. Liar's Ball reveals their secrets and tells the tale of business as usual for this group--lying, backstabbing, and moving in for the kill when things look patchy. From the bestselling author of The Devil's Casino comes an expos??? on the real estate elite that you'll hardly believe.

Leseprobe

The Liar's Ball

The Extraordinary Saga of How One Building Broke the World's Toughest Tycoons

Vicky Ward

Cover image: Mask © iStock.com/DNY59; GM Building © PSL Images/Alamy Cover design: C. Wallace

Copyright ©2014 by Vicky Ward. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

ISBN 978-1-118-29531-1 (Cloth) ISBN 978-1-118-41987-8 (ebk) ISBN 978-1-118-42151-2 (ebk)

For Richard

CONTENTS

Preface

Cast of Characters

Introduction

Chapter 1: Stealing the Spotlight

Chapter 2: Alpha Males

Chapter 3: The Rigged Bid

Chapter 4: Harry's Hero

Chapter 5: The Odd Couple: The English Lord and the Housewife Tycoon

Chapter 6: The Age of the Wolf

Chapter 7: Donald Trump's Bag Man

Chapter 8: The Money Hunters and the Salesman from Indianapolis

Chapter 9: Donald's “Force Majeure”

Chapter 10: Paradise, Briefly

Chapter 11: Mr. Toad's Wild Ride

Chapter 12: Tick Tock—A Year on the Clock

Chapter 13: The Fall That Wasn't

Chapter 14: Aftermath

Note about the Sources

Acknowledgments

Notes

Preface

Introduction

Chapter 1 Stealing the Spotlight

Chapter 2 Alpha Males

Chapter 3 The Rigged Bid

Chapter 4 Harry's Hero

Chapter 5 The Odd Couple: The English Lord and the Housewife Tycoon

Chapter 6 The Age of the Wolf

Chapter 7 Donald Trump's Bag Man

Chapter 8 The Money Hunters and the Salesman from Indianapolis

Chapter 9 Donald's “Force Majeure”

Chapter 10 Paradise, Briefly

Chapter 11 Mr. Toad's Wild Ride

Chapter 12 Tick Tock—A Year on the Clock

Chapter 13 The Fall That Wasn't

Chapter 14 Aftermath

Bibliography

About the Author

Index

Supplemental-Images

End User License Agreement

List of Illustrations

Supplemental Images

Harry Macklowe's preface to his own collection of photographs Credit:

Macklowe Properties: Projects 1967–2007

Harry Macklowe, left, and son Billy, New York, 2001 Credit:

April 2, 2001—The Four Seasons Restaurant Grill Room—$750,000,000 Acquisitions and Refinancings Celebration/Macklowe Properties

(Left to Right) Billy Macklowe, Rob Horowitz, Harry Macklowe and Eric Schwartz, New York 2001 Credit:

April 2, 2001—The Four Seasons Restaurant Grill Room—$750,000,000 Acquisitions and Refinancings Celebration/Macklowe Properties

Linda Macklowe and Harry Macklowe, 2009 Guggenheim International Gala, September 16, 2009 Credit:

patrickmacmullen.com

(From left to right) Robert Verrone, Steve Stuart, Harry Macklowe, and Rob Horowitz in the Wachovia Pro-am, 2001 Credit:

Harry Macklowe personal photograph

767 Fifth Avenue in 1915 Credit:

Macklowe Properties, Projects 1967–2007

The Savoy Plaza hotel designed by McKim Mead and White, 1928 Credit:

Macklowe Properties, Projects 1967–2007

William Zeckendorf Credit:

Alexandra Compain-Tissier

Max Rayne Credit:

by Rex Coleman, for Baron Studios;

©

National Portrait Gallery, London

Cecilia Benattar with a model of the GM building pre-construction, New York, early 1960s Credit:

Simon Benattar

A gold key presented to Cecilia Benattar by locksmiths on the opening of the GM building, New York, late 1960s Credit:

Simon Benattar

Cecilia Benattar in her office, New York, early 1970s Credit:

Simon Benattar

The GM building on opening in New York, 1968 Credit:

Macklowe Properties: Projects 1967–2007

Standing: Kathryn M. Deane, Disque D. Deane Jr, Walter L. Deane, Marjorie G. Deane Seated: Disque Dee Deane, Marjorie S. Deane Dog: Joe Credit:

Deane Family Archives

Ira Millstein, 25th ANNUAL FREDERICK LAW OLMSTED AWARDS LUNCHEON Presented by the Women's Committee of the Central Park Conservancy Central Park's Conservatory Garden, NYC, May 2, 2007 Credit:

patrickmacmullen.com

David Simon, New York Credit:

Don Hamerman

Prince Nicolo and Princess Rita Boncompagni Ludovisi (formely Rita Jenrette), Rome, Italy, Villa Aurora, January 15, 2013 Credit:

Linda Hervieux

Tomisue and Stephen Hilbert, New York, 2013 Credit:

Tomisue Hilbert personal photograph

(Left to Right) Rob Horowitz, Rhona Graff, Donald and Melania Trump, in Trump's penthouse, early 2000s Credit:

Rob Horowitz personal photograph

The GM building with TRUMP letters on it, circa 2000 Credit:

brorson.com

Letter from Harry Macklowe to Rob Horowitz Credit:

Harry Macklowe

Letter from Harry Macklowe to Donald Trump Credit:

Harry Macklowe

125 W 55th St. Lobby Credit:

Macklowe Properties: Projects 1967–2007

Macklowe exploded Smart cars, 340 Madison Ave. Lobby Credit:

Macklowe Properties: Projects 1967–2007

Sketches of the Apple Cube drawn for the author by Harry Macklowe, New York, 2014 Credit:

Harry Macklowe

The GM Building Credit:

Macklowe Properties: Projects 1967–2007

Guide

Cover

Table of Contents

Preface

Pages

ix

x

xi

xii

xiii

xv

xvi

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

65

66

67

68

69

70

71

72

73

74

75

76

77

79

80

81

82

83

84

85

86

87

88

89

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

109

110

111

112

113

114

115

117

118

119

120

121

122

123

124

125

126

127

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

145

146

147

148

149

150

151

152

153

154

155

156

157

159

160

161

162

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

231

232

233

235

236

237

238

239

240

Preface

Every year, toward the end of January, around 2,000 members of the New York real estate industry gather in the Hilton Hotel to celebrate the Real Estate Board of New York's annual gala: an event affectionately known by its attendees as “the Liar's Ball.”

The dress code is black tie, but that's the only nod to decorum.

The senior U.S. senator for New York, Charles Schumer, is a regular, as are the presiding mayor and New York's archbishop, John Cardinal O'Connor. The dignitaries sit on the dais and, during dinner, one by one, they rise to make speeches, but they don't expect to be heard by an openly disdainful audience that is busily clinking glasses and shouting over and at each other, boasting about last year's profits and deals.

The public figures are glad, for once, that there are no national TV crews on hand to record this ritualistic humiliation. Senator Schumer grins while he talks, trying to appear as if he is in on the joke. But there is no joke. The diners talk over him and the rest simply because they've got other priorities.

Every year, for just one night, these wheelers-and-dealers come to make nice with competitors they cheerfully deride the rest of the year. They come to pick up a deal or maybe five. And although they often wish they could exist without their peers—their fellow pirates—this is an incestuous club, where connections to the right partners, lawyers, bankers, and brokers are key for deal flow.

So they come to the Hilton to schmooze, to pretend, to shout. “It almost doesn't matter who the speakers are, because I've never seen—as much as I love my colleagues—a ruder group of people than at this banquet,” Peter Hauspurg, the chairman and CEO of Eastern Consolidated, told the New York Observer in 2012.

To an outsider, the behavior seems bizarre. To witness a mob in tuxedos and tulle yelling over a U.S. senator? To hear someone whisper, “I can't stand this guy; I fired him a year ago,” before turning to monopolize his prey with a serpentine charm? To the cognoscenti at the Liar's Ball, dissembling is as natural and necessary as breathing.

This party celebrates characteristics most of us condemn: brashness, mendacity, greed. . . . On this one night the industry revels in who and what it really is and it does not care who sees.

Welcome to the Liar's Ball. It's rough, it's vulgar, and it's a riveting show.

Cast of Characters

The Early Years

Principal: William Magear “Boss” Tweed

Principal: Judge P. Henry Dugro

Principal: Harry S. Black

Principal: Conrad Hilton

Principal: William Zeckendorf

The Rayne/Benattar Years

Principal: Max Rayne

Principal: Cecilia Benattar

Principals' lawyers: Jesse Wolff, Martin Ginsberg

Principals' spouses: Jack Benattar, Michael Schwartz (Benattar), Lady Jane Vane-Tempest-Stewart (Rayne)

Principals' children: The Honorable Robert “Robbie” Rayne; Naomi, Simon, Jessica, and Judith Benattar

Principals' tenants: Mary Wells Lawrence, Estée and Leonard Lauder, Ira Millstein, Harvey Miller, General Motors

Principals' broker: Harry Macklowe

Principals' architect: Edward Durrell Stone

Principals' supporting cast: James Nagy, Geoffrey Wharton

The Disque Deane Years

Principal: Disque Deane

Principal's wives: Anne Delafield, Marjorie Schlesinger, Carol Gram

Principal's acknowledged children: Marjorie Deane, Kathryn Deane, Disque Deane Jr., Walter Deane, Anne Deane, and Carl Deane

Principal's unacknowledged child: Hare Deane

Principal's mentor: André Meyer

Principal's senior executives: Hans Mautner, Jerry O'Connor, G. Martin Fell, Warren Hamer, Thomas Zacharias

Principal's mistress; Barbara Koz

Seller to Principal: Harry Macklowe

Principal's supporting cast: Roderick Johnson

Principal's business partners: Fred and Donald J. Trump

The Simon/Trump/Hilbert Years

Principal: Donald J. Trump

Principal: Stephen Hilbert

Principal: David Simon

Principals' leading ladies: Melania Trump, Tomisue Hilbert, Louann Hilbert

Principal's supporting cast: Rhona Graff (Trump)

Principals' senior executives: Abraham Wallach (Trump), George Ross (Trump), Ngaire Cuneo (Hilbert), Rollin Dick (Hilbert), James Adams (Hilbert)

Principal's advisor: Robert B. Horowitz (Trump)

Principal's would-be broker: Rita Jenrette

Principal's lenders: Lehman Brothers (Mark Walsh, Charles Schoenherr)

Principals' opponents: Charles Cremens, Reed Oslan, JB Carlson (Hilbert), John Menard (Hilbert)

Principals' competitors: Michael Fascitelli, Steven Roth, Samuel Zell (Trump)

Principal's friend-turned-nemesis: Benjamin V. Lambert (Trump)

The Macklowe Years

Principal: Harry B. Macklowe

Principal's leading lady: Linda Macklowe

Principal's family members: William S. Macklowe (spouse Julie), Elizabeth Macklowe (Kent Swig)

Principal's supporting cast: Liliana Coriasco

Principal's lawyers: Robert Sorin, Joseph Forstadt, Jonathan L. Mechanic

Principal's financial broker: Robert Horowitz

General Motors Building sales brokers: Wayne Maggin, Benjamin Lambert, Roy March, Douglas Harmon

Principal's lenders: Eric Schwartz, Robert Verrone, Andrew Bednar, Peter J. Briger, Steve Stuart, Roger Cozzi, Steven Mnuchin

Principal's design team: Daniel Shannon

Principal's chief rivals: Michael Fascitelli, Steven Roth, Sheldon Solow, and representing Solow: David Boies, Andrew Hayes, Steven M. Cherniak

Principal's art dealer: Andrew Fabricant

Principal's partners at Apple: Steve Jobs, George Blankenship; Peter Bohlin and Karl Backus (architects)

Some of Principal's tenants: Joseph Perella, Leonard Lauder, Sanford Weill, Carl Icahn, Weil, Gotshal & Manges

Sellers of Equity Office Properties (EOP) to Principal: Jonathan D. Gray, Anthony Myers

Former owner of EOP: Samuel F. Zell

The Zuckerman Years

Principal: Mortimer Zuckerman

Principal: The Safra family

Principal: Zhang Xin

Introduction

Many people have asked me over the past three years what this book is about. For months I hesitated and stumbled when answering. I knew it was about a group of flamboyant real estate tycoons whose rise-and-fall stories spanned 150 years and whose connections to one another were entwined in their desire for a plot of land upon which stands a gleaming white marble tower, the most expensive office building in the United States: the General Motors (GM) Building.

I knew that the first of the overreachers was Tammany Hall scoundrel William Magear “Boss” Tweed, whose lust for lucre meant he wound up bankrupt in jail. After him came Harry S. Black, America's most prolific builder in 1900. Black committed suicide in the house he used to own with his first wife, a woman he had foolishly betrayed and lost. Then there was the towering, talented William Zeckendorf, a man who expanded the importance of the job description developer, but who also died alone and bankrupt. There followed the urbane British Lord Max Rayne and his colorful, indefatigable female chief executive, Cecilia Benattar, the so-called “housewife tycoon” who brazenly battled New York's social and business elite, then disappeared as suddenly as she'd arrived. There was Disque D. Deane, a brutal man who, it was whispered, as good as killed his wife with cruelty. Next came David Simon, the mall heir; he was quickly followed by Stephen “Steve” C. Hilbert, the one-time insurance salesman from Indianapolis who helicoptered five miles to work each day—and married a woman who jumped, practically naked, out of a cake. His partner was Donald J. Trump, who needs no introduction. And then came Harry Macklowe, the most charismatic of these characters and perhaps the most tragic.

Why do their stories matter? Why should anyone care about a group of rich guys competing for a very expensive building? What became both bewildering and absorbing as I researched this book were the extraordinary lengths to which these men went to achieve their goals.

Dream chasing, it turns out, in the world of global real estate is a sordid pursuit.

In these pages, lying, cheating, stealing, suing, and tax evasion are just humdrum ways of business. Friendships and alliances get made to be broken; a man's word is never his bond; partners routinely sue one another; wives are discarded and cheated on; but so too are bankers, colleagues, and brokers.

The boorish behavior at the Liar's Ball, the party that the Real Estate Board of New York throws itself each year, had intrigued me when I attended the event. It also paled in comparison to the roughness I would unearth. And yet . . . .

Tempering the grotesque intemperance was the humanity, the vulnerability that these characters—for the most part—revealed.

I realized as I combed through more than 200 interviews with my crowd of “rough riders” (as the New York real estate deal makers were once called—there was even a room in the Roosevelt Hotel where they negotiated over lunch) that my fascination with them lay as much in their insecurities as in their ambitions. And that one explained the other.

And whatever faults these people share, these leaders of the dance at the Liar's Ball have at least danced.

A friend of Harry Macklowe's long-suffering wife, Linda, put it this way: “This is not a normal world. . . . None of these people are fuckin' normal. And, again, what is normal? They're all gifted in such a way that they are unique, disturbed individuals. . . . And the level of disturbance is oftentimes about how successful they are.”

Chapter 1Stealing the Spotlight

I think that I've been able to lead and have a high enough profile where people say, “Hmmm, how would Harry Macklowe do this? He's my hero.”

—Harry Macklowe

He spotted his chance the night the letters vanished.

They were there, as usual, one dusky summer's evening in Manhattan, but the next morning they were gone. All of them. Their disappearance immediately spurred frantic, gossipy phone calls between the major real estate offices in New York City. Everyone knew the significance, but very few knew what had happened. There was speculative chatter about a “midnight raid,” even a “robbery.”

Bizarrely, some of the garish letters began to show up on office walls around New York, where they still remain. Their proud owners were coy about how they had acquired their trophies. Was Donald J. Trump, the flame-haired, flamboyant developer, furious? No one dared ask him. All they knew was that the letters’ disappearance marked the end of his most cherished dream.