Why $13 billion made by 20 real estate tycoons looks small – Daily News
U.S. real estate agents couldn’t keep up with their billionaire counterparts in the pandemic.
Let’s ponder data from my trusted spreadsheet that tracks the ups and downs of the combined wealth of the 20 richest individual real estate owners in the country.
In total, the 20 tycoons in Forbes’ bookkeeping were worth $ 97 billion in 2021 – or an average of $ 4.9 billion each. That was $ 13 billion – an average profit of $ 700 million per tycoon – in 12 dramatic months of a global battle against the coronavirus.
As the world slowly won the pandemic war and property values recovered from coronavirus damage, 16 of those 20 tycoons actually saw their booth on Forbes’ global wealth display. Their combined average rank dropped 126 spots to 688.
Few would say these real estate gains were small, but a closer look at Forbes’ research says a lot about the rare billionaire world.
A year ago, 2,095 billionaires from all industries combined were worth $ 8 trillion, an average of $ 3.8 billion per asset. That year, 2,755 billionaires – yes, 660 more – were worth $ 13.1 trillion. That’s an average of $ 4.8 billion.
The table shows that the net worth of the typical billionaire in the world grew by $ 1 billion, or 24%, in a pandemic year. The total assets of the 20 real estate magnates increased “only” by 16%.
Some of this underperformance can be linked to persistent real estate uncertainties such as the future of shopping malls and office towers. Much of the void, however, has to do with the stock market, a wealth creation machine that brings in far more wealth than real estate owners.
The S&P 500, the main benchmark for US stocks, rose 23% over the same period. The Nasdaq Composite, a benchmark for cutting-edge technology stocks, rose 43%. And it’s a global bull market as the S&P Global 1200 Index is up 27% on the year.
No compassion is required for these wealthy real estate owners, but their portfolios have underperformed when they looked through this global prism of wealth.
Here’s who they are, how their wealth has changed over the past two years, and how their wealth has changed, according to Forbes …
1. Donald Bren, 88 years old: His net worth of $ 15.3 billion – tied to the Irvine Co. real estate empire – fell 1% last year after falling 5% in the past 12 months . He is 132nd richest in the world compared to 63 a year ago.
2. Stephen Ross (80 years old): His 7 billion US dollars from property developer Related Cos. Declined 8% last year and been unchanged for the past 12 months. It was ranked 369th against 185th a year ago.
3. John Sobrato, 81, and family: $ 6 billion from Sobrato Development, a commercial landlord based in Silicon Valley, rose 40% last year after falling 34% in the past 12 months. A year ago it was ranked 451 against 414.
4. Neil Bluhm, 83: $ 5.7 billion in marquee real estate in Chicago rose 54% last year after falling 8% in the past 12 months. A year ago it was ranked 486 versus 494.
5. Edward Roski, Jr. (82): $ 5.5 billion from Majestic Realty, a Los Angeles-based developer, rose 77% last year after falling 43% in the past 12 months. A year ago it was ranked 502 compared to 648.
6. Sam Zell, 79: $ 5.3 billion from Equity Group Investments rose 10% last year after falling 13% in the past 12 months. A year ago it was ranked 529 versus 349.
7. Ted Lerner, 95) and family: $ 4.8 billion in Washington, DC real estate rose 30% last year after falling 24% in the past 12 months. A year ago it was ranked 589 versus 494.
8. Igor Olenicoff, 78: $ 4.5 billion from Olen Properties, a commercial landlord rooted in Southern California, rose 15% last year after falling 3% in the past 12 months. A year ago it was ranked 638 versus 468.
9, tie. Rick Caruso, 62: $ 4.2 billion from his Los Angeles mall development company rose 24% last year after falling 15% in the past 12 months. It ranks 680 overall compared to 565 a year ago.
9, tie. Leonard Stern, 83: $ 4.2 billion in real estate in the New Jersey area fell 7% last year after previously falling 6%. A year ago it was ranked 680 versus 383.
11. Katharina Otto-Bernstein (57): $ 4.1 billion from managing Otto’s family assets rose 105% last year after falling 41% earlier. It ranks at 705 compared to 1,063 a year ago.
12. Jeff Greene, 66: $ 3.9 billion – created by betting against high risk mortgages in the recent housing bubble – rose 5% last year after rising 9% earlier. It was ranked 752 compared to 494 a year ago.
13. Donald Sterling, 86: $ 3.8 billion from Los Angeles apartment buildings rose 6% last year and was flat over the past 12 months. It ranks 775 against 514 a year ago.
14. Ty Warner, 76: $ 3.6 billion from converting his Beanie Babies business into a high-end hotel portfolio, up 38% last year from flat growth over the past 12 months. A year ago it was ranked 831 compared to 804.
15. Charles Cohen, 69: $ 3.5 billion from high-end office buildings in New York City rose 9% last year, up from a 6% decrease over the past 12 months. It ranks 859 against 616 a year ago.
16. Jay Paul, 73: $ 3.4 billion in Silicon Valley office space rose 62% last year after falling 36% in the past 12 months. A year ago it was ranked 891 compared to 1,001.
17. Richard LeFrak, 75, and family: $ 3.3 billion from New York apartments rose 18% last year after falling 53% in the past 12 months. A year ago it ranks between 925 and 743.
18, tie. Jane Goldman, 65: $ 3.1 billion from New York City apartments was flat last year after falling 6% in the past 12 months. It ranks 986 against 648 a year ago.
18, tie. Herb Simon, 86: $ 3.1 billion in the mall giant that bears the family name rose 24% last year after falling 26% in the past 12 months. A year ago it ranks between 986 and 836.
18, tie. Jerry Speyer, 80: $ 3.1 billion of landmark office towers fell 23% last year and was flat over the past 12 months. It ranks 986 against 451 a year ago.
Jonathan Lansner is a columnist for the Southern California News Group. He can be reached at [email protected]