Page 60 - How To Get Rich

were mostly in apparel—and they were in way over their heads. They
poured tens of millions of dollars into the building but were getting
nowhere. They had problems with tenants, contractors, suppliers,
architects, even the owners of the land, a prominent family from Germany,

the Hinnebergs. Eventually, Kinson wanted out, and they called me.
It was now 1995 and the market still wasn’t so good. Kinson had every
reason to want to get out, and they wanted to do it quickly and quietly. So
the negotiations began, with me offering them $1 million in addition to
assuming and negotiating their liens. I also made the deal subject to a
restructured ground lease with the Hinneberg family.
They accepted my terms without question.

Why? Because they wanted out—and fast. They knew it and I knew it,
and because I knew it, the negotiation was easy.
There was another crucial aspect to this deal, which proves the
importance of knowing what the other side wants: All of the prior
leaseholders had dealt with the agent of the Hinneberg family. The agent
insisted on increasing the rent and raised other financial obstacles that he

said the owner insisted upon. I had to see for myself what the Hinnebergs
wanted—was it money, or something else? If you want the truth, go to the
source and skip the translation by the intermediary.
I flew to Germany with Bernie Diamond, my general counsel, for a
face-to-face meeting with the owner, who seemed impressed by the fact
that I would travel across the Atlantic to see him. I learned that what he
really wanted was peace of mind in connection with his ownership of the

land, but all he was getting was aggravation and litigation. I told him I
would agree to turn the present disaster into a first-class office building if
he would forgo all rent during the renovation period and revise the lease to
permit rental to quality subtenants and bank financing for part of the
building improvements. He agreed—and it was the first of many instances

that confirmed my belief that Walter, Christian, and Walter Hinneberg Jr.
are among the finest people with whom I’ve ever done business.
Very soon after acquiring 40 Wall Street, the markets turned for the
better, and the downtown area experienced a renaissance in terms of both
commercial and residential properties and developments.
I make a great deal of money from 40 Wall Street. Aside from owning
the most beautiful building in lower Manhattan, I have the added
attraction of owning a particularly lucrative one, all because I watched the