N Y C E l ec t i o n G u i d e
Spitzer: Real estate & redemption By Hiten Samtani t’s a New York City truism that politics and real estate are cozy bedfellows. But Eliot Spitzer’s bonds are stronger than most. The former governor — who resigned in the wake of a prostitution scandal and this month is going head-tohead with fellow Democrat Scott Stringer for the job of city comptroller — is the scion of a prominent real estate family.
I
In the name of the father
As he attempts to win redemption in politics, The Real Deal examined Spitzer’s ties to the real estate industry, looking at his family’s roughly $1 billion property portfolio, his real estate track record while in public office, and how a potential win would impact key industry issues from development projects to taxes.
Squaring off against Scott
Bernard Spitzer
Eliot’s father, Bernard, amassed a sprawling portfolio of white-glove Manhattan buildings. His company, Spitzer Enterprises, owns residential properties like 985 Fifth Avenue, 800 Fifth Avenue, and the flagship 817-unit Corinthian on East 38th Street.
Scott Stringer
Spitzer’s opponent comes from far more humble beginnings. A Washington Heights native, Stringer graduated from the John Jay College of Criminal Justice and worked as a legislative assistant in the state assembly. Elected Manhattan Borough President in 2006, Stringer has a mixed real estate record. He backed the mega Second Avenue Subway project, but opposed Jamestown Properties’ proposal to expand Chelsea Market. In March, he called for a 10-year limit on Madison Square Garden’s lease. And last month, after the city tweaked its Midtown East rezoning proposal to include upfront funding for transit improvements, Stringer backed that plan.
Legal eagle
At first, Eliot’s career had little to do with real estate. After graduating from Harvard Law School, he made a name for himself in the Manhattan District Attorney’s Office. But while serving as the state’s Attorney General from 1999 to 2006, he often had to recuse himself from reviewing co-op and condo offering plans due to potential conflicts of interest connected to his family’s holdings, the Wall Street Journal reported. While Spitzer did have other brushes with real estate as attorney general, he famously focused on white collar crime in the financial industry.
Eliot Spitzer
Comptroller in command
The city comptroller traditionally acts as the city’s chief financial officer, keeping tabs on government spending, but Spitzer has said that he envisions the office moving beyond that role. If elected, Spitzer would also oversee $140 billion in assets held by the city’s five pension funds. He told Bloomberg News that he would use the funds’ shareholder power to act as a corporate governance and social impact watchdog on Wall Street. And influence on Wall Street could translate into a greater say in the city’s real estate practices, as the two industries are deeply intertwined. The comptroller position “is ripe for greater and more exciting use of the office’s jurisdiction,” Spitzer told the Times.
Eliot takes control
Now that Bernard is 89 and in ill health, the younger Spitzer is reportedly steering the family business. Real estate and media obligations — including stints at CNN and Current TV — have taken up the bulk of Spitzer’s time since he left the governor’s office, a Spitzer campaign spokesperson told TRD. In February, Spitzer spearheaded the family’s $25.5 million acquisition of the retail condo at 350 West Broadway in Soho, and has since been on the lookout for opportunities to buy New York City development sites. Spitzer “clearly has taken over the portfolio,” Eastern Consolidated head Peter Hauspurg told the website Capital New York.
Power to the people
Despite his industry lineage, Spitzer has sometimes taken public positions against development projects while in office. For example, he helped block developer David Bistricer’s 2007 bid to buy the gargantuan Starrett City affordable housing complex in Brooklyn for $1.3 billion. Spitzer told the Times that a sale could lead to an even greater drought in the city’s affordable housing stock. The sale never went through, and in 2009, Starrett City was refinanced, a move that will keep it affordable for the next 30 years.
Valuable holdings
Thanks to Spitzer’s real estate ties, his political downfall barely made a dent in his wallet. He and his wife, Silda Wall Spitzer, raked in $2.56 million from their real estate holdings in 2012, up from $2.24 million in 2011 and $1.4 million in 2006, according to the New York Times, which reviewed their latest tax returns. The bulk of this income comes from 681-689 Madison Avenue, in which Spitzer personally owns a 63 percent stake, the New Yorker reported. Spitzer declined to comment on his earnings.
Luxury living
350 West Broadway 985 Fifth Avenue
62 September 2013 www.TheRealDeal.com
Spitzer officially lives at 985 Fifth Avenue, a luxury rental owned by the family firm. But in recent months, Spitzer has increasingly been staying at 800 Fifth Avenue, another company-owned building where his parents also reside, according to the New York Post. A spokesperson told TRD that he stays often at 800 Fifth Avenue in order to “spend more time with his ailing parents.”
www.TheRealDeal.com March 2012 00