Gerald Guterman
Encyclopedia
Gerald Guterman is an international real estate
developer and investor. He is one of the largest co-op
and condominium converters in the United States. He also served as a Commissioner of the United States Romania Action Commission under the sponsorship of the United States Center for Strategic and International Studies, as well as Chairman of its banking and financing committees. Guterman served as personal financial advisor to the Minister of Privatization, Government of Romania
. He is currently the Chairman and CEO of Guterman Partners, LLC.
. The Brooklyn born son of a beverage wholesaler, Guterman amassed a fortune on scores of condominium and co-ops
conversions in New York City
.
Beginning in the 1980s, he became one of the largest property managers in the United States
, with over 60,000 apartments in over 250 communities nationwide and over 16,000 rental apartments converted to condominium ownership.
As chairman of the publicly owned Hanover Companies, Guterman led a trend of selling occupied apartments to investors who would hold them until their tenants vacated. When the units were vacated, the investors could then sell them at a substantial profit.Hanover's holdings also included, among other things, the Stanhope and Adams hotels, a controlling interest in Roosevelt Island and what was at the time, the only magnetic monorail system in the United States.
along with a crew of over 1,000, for his 13yr old son's Bar Mitzvah party. Although the QE2 had been chartered for cruises by corporations, the Guterman family party was a first of its kind, said a spokesman for the Cunard line. The guests were mostly relatives, friends and neighbors of Gutermans who live in Bedford, N.Y., in Westchester County, or friends of the children from camp or school. In attendance were numerous politicians and real estate figures including New York City Council, President Andrew J. Stein, Comptroller Harrison J. Goldin. The ship set sail at 6p.m. though helicopters continued to touch down on the sports deck to drop off late-comers, including Ivan F. Boesky, the stock and investment speculator. When asked about the cruise in a recent interview for his upcoming biography, Guterman remarks that he maintains mixed feelings about the event. "On the one hand, it was a fantastic and extraordinary celebration for my family. As a father, I was proud of my children and wanted to give them the things I never had growing up as a poor kid in Brooklyn. On the other hand, when you wind up on the front page Leisure Section of New York Times, you leave yourself open for backlash, especially in those rare times of financial struggle."
" stock market crash of 1987, Guterman placed his Stanhope Hotel
(purchased in 1985 for $19,600,000) into Chapter 11 and immediately sold the hotel to Tobishima (a property company from Japan) for over $76,000,000.
Further setbacks were created by a divorce decree that forced Guterman to sell his renowned art collection, considered at the time to be the most valuable such selection of Old Master paintings ever auctioned in New York. While the sale of Guterman's paintings brought "the highest total ever for an Old Master sale in America" and set 11 artist's records for price, to some it was disappointing.
and Comptroller Harrison J. Goldin also brought repeated scrutiny from the New York newsmedia. A new law was past in 1988 that limited private campaign contributions and drew scrutiny to both Donald Trump, and Gerald Guterman. While their contributions were discussed at the hearings, the new law did not prohibit their practices that drew so much attention:
(FDIC). The Patriot deal drew criticism from congress in a report that called the RTC model for disposing of savings and loan properties in bulk "wasteful" and "uncompetitive." Further, the report criticized the RTC for negotiating with Guterman while he was under investigation, though it was also noted that Guterman had been falsely accused and that all charges had been dismissed.
, Adelphi University
, New York City Opera
, Dallas Opera
, Young Men's Philanthropic League, Rippowam Cisqua School, and Harvey School. He also served as a Commissioner of the United States Romania Action Commission under the sponsorship of the United States Center for Strategic and International Studies, as well as Chairman of its banking and financing committees. Guterman served as personal financial advisor to the Minister of Privatization, Government of Romania
.
Gerald Guterman is a founder of Albert Einstein College of Medicine. He was awarded "Humanitarian of the Year" by the Juvenile Diabetes Foundation. Guterman is a Founding Benefactor of Research Lab, Study of Tumor Cell Biology and Research Lab, Study of Immunodeficiency Disease at the National Asthma Center He is also a member Society of University Founders, Miami University..
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
developer and investor. He is one of the largest co-op
Housing cooperative
A housing cooperative is a legal entity—usually a corporation—that owns real estate, consisting of one or more residential buildings. Each shareholder in the legal entity is granted the right to occupy one housing unit, sometimes subject to an occupancy agreement, which is similar to a lease. ...
and condominium converters in the United States. He also served as a Commissioner of the United States Romania Action Commission under the sponsorship of the United States Center for Strategic and International Studies, as well as Chairman of its banking and financing committees. Guterman served as personal financial advisor to the Minister of Privatization, Government of Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
. He is currently the Chairman and CEO of Guterman Partners, LLC.
Overview
Guterman began a career in real estate at the age of 18 as a night porter for Fred Trump, father of famed developer Donald TrumpDonald Trump
Donald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
. The Brooklyn born son of a beverage wholesaler, Guterman amassed a fortune on scores of condominium and co-ops
Housing cooperative
A housing cooperative is a legal entity—usually a corporation—that owns real estate, consisting of one or more residential buildings. Each shareholder in the legal entity is granted the right to occupy one housing unit, sometimes subject to an occupancy agreement, which is similar to a lease. ...
conversions in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
.
Beginning in the 1980s, he became one of the largest property managers in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, with over 60,000 apartments in over 250 communities nationwide and over 16,000 rental apartments converted to condominium ownership.
As chairman of the publicly owned Hanover Companies, Guterman led a trend of selling occupied apartments to investors who would hold them until their tenants vacated. When the units were vacated, the investors could then sell them at a substantial profit.Hanover's holdings also included, among other things, the Stanhope and Adams hotels, a controlling interest in Roosevelt Island and what was at the time, the only magnetic monorail system in the United States.
A Bar Mitzvah Aboard the QE2
In September 1986, Guterman drew media attention when he chartered the famed ocean liner RMS Queen Elizabeth 2RMS Queen Elizabeth 2
Queen Elizabeth 2, often referred to simply as the QE2, is an ocean liner that was operated by Cunard from 1969 to 2008. Following her retirement from cruising, she is now owned by Istithmar...
along with a crew of over 1,000, for his 13yr old son's Bar Mitzvah party. Although the QE2 had been chartered for cruises by corporations, the Guterman family party was a first of its kind, said a spokesman for the Cunard line. The guests were mostly relatives, friends and neighbors of Gutermans who live in Bedford, N.Y., in Westchester County, or friends of the children from camp or school. In attendance were numerous politicians and real estate figures including New York City Council, President Andrew J. Stein, Comptroller Harrison J. Goldin. The ship set sail at 6p.m. though helicopters continued to touch down on the sports deck to drop off late-comers, including Ivan F. Boesky, the stock and investment speculator. When asked about the cruise in a recent interview for his upcoming biography, Guterman remarks that he maintains mixed feelings about the event. "On the one hand, it was a fantastic and extraordinary celebration for my family. As a father, I was proud of my children and wanted to give them the things I never had growing up as a poor kid in Brooklyn. On the other hand, when you wind up on the front page Leisure Section of New York Times, you leave yourself open for backlash, especially in those rare times of financial struggle."
The Guterman Collection
Beginning in the 1970s, Gerald Guterman acquired a collection of 17th-century, Dutch and Flemish Old Master paintings. The collection was referred to by experts as one of the very best in America. The paintings were housed in a 3000 sq ft (278.7 m²) gallery (created in the image of Manhattan’s famous Frick Gallery) in a wing of Guterman's Bedford Estate. Artists in Guterman's collection included Rembrandt, Renoir, Barent Fabritius, Solomon van Ruysdael, Frans Hals, Hendrick Avercamp, Jan Lievens, Govaert Flinck, and Jan van Goyen, to name a few.1988 Tax Law Reversal
In 1988, a new tax law eliminated the tax shelter aspect of the Co-Op Conversion model, making them less desirable and resulting in heavy financial setbacks for Guterman and his Companies. Having already taken financial losses in the "Black MondayBlack Monday
Black Monday is a term used to refer to certain events which occur on a Monday. It has been used in the following cases:* Black Monday, Dublin, 1209 – when a group of 500 recently arrived settlers from Bristol were massacred by warriors of the Gaelic O'Byrne clan...
" stock market crash of 1987, Guterman placed his Stanhope Hotel
Stanhope Hotel
995 Fifth Avenue is a 16-story co-op condominium building at 995 Fifth Avenue and East 81st Street in New York City, across Fifth Avenue from Central Park and the Metropolitan Museum of Art. It was constructed in 1926 as The Stanhope Apartment Hotel and designed by Rosario Candela...
(purchased in 1985 for $19,600,000) into Chapter 11 and immediately sold the hotel to Tobishima (a property company from Japan) for over $76,000,000.
Further setbacks were created by a divorce decree that forced Guterman to sell his renowned art collection, considered at the time to be the most valuable such selection of Old Master paintings ever auctioned in New York. While the sale of Guterman's paintings brought "the highest total ever for an Old Master sale in America" and set 11 artist's records for price, to some it was disappointing.
Describing the buying as very selective, John L. Marion, Sotheby's chairman, said: On the one hand, it is the highest total ever for an Old Master sale in America and there were 11 artist's records set. On the other hand, you could observe the fact that there was little or no bidding from dealers. I think this means these were not the kind of pictures they buy for stock.
Criticism
Guterman's active support of some New York politicians, such as Ed KochEd Koch
Edward Irving "Ed" Koch is an American lawyer, politician, and political commentator. He served in the United States House of Representatives from 1969 to 1977 and three terms as mayor of New York City from 1978 to 1989...
and Comptroller Harrison J. Goldin also brought repeated scrutiny from the New York newsmedia. A new law was past in 1988 that limited private campaign contributions and drew scrutiny to both Donald Trump, and Gerald Guterman. While their contributions were discussed at the hearings, the new law did not prohibit their practices that drew so much attention:
For example, the developer Donald TrumpDonald TrumpDonald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
told the commission that in 1985 he spread tens of thousands of dollars in contributions to City Council President Andrew J. Stein among 18 subsidiary companies to skirt the state's limits of $50,000 for individual and $5,000 for corporate contributions. Another developer, Gerald Guterman, contributed $100,000 in one month to Mr. Goldin by parceling the gifts among 21 companies.
Through The Nineties
In the early 1990s, Guterman rebounded from his financial troubles and founded Patriot American Investors. Guterman negotiated and directed the largest direct purchase of office buildings and hotels in the history of the Resolution Trust Corporation and its successor, the Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC). The Patriot deal drew criticism from congress in a report that called the RTC model for disposing of savings and loan properties in bulk "wasteful" and "uncompetitive." Further, the report criticized the RTC for negotiating with Guterman while he was under investigation, though it was also noted that Guterman had been falsely accused and that all charges had been dismissed.
Trusteeships & Charitable Participation
Gerald Guterman served as a trustee of The Metropolitan Museum of ArtMetropolitan Museum of Art
The Metropolitan Museum of Art is a renowned art museum in New York City. Its permanent collection contains more than two million works, divided into nineteen curatorial departments. The main building, located on the eastern edge of Central Park along Manhattan's Museum Mile, is one of the...
, Adelphi University
Adelphi University
Adelphi University is a private, nonsectarian university located in Garden City, in Nassau County, New York, United States. It is the oldest institution of higher education on Long Island. For the sixth year, Adelphi University has been named a “Best Buy” in higher education by the Fiske Guide to...
, New York City Opera
New York City Opera
The New York City Opera is an American opera company located in New York City.The company, called "the people's opera" by New York Mayor Fiorello La Guardia, was founded in 1943 with the aim of making opera financially accessible to a wide audience, producing an innovative choice of repertory, and...
, Dallas Opera
Dallas Opera
The Dallas Opera is an opera company located in Dallas, Texas . The company was founded in 1957 as the Dallas Civic Opera by Laurence Kelly and Nicolà Rescigno, both of whom had been active with the Lyric Opera of Chicago, the first as administrator, the second as artistic director.-The company's...
, Young Men's Philanthropic League, Rippowam Cisqua School, and Harvey School. He also served as a Commissioner of the United States Romania Action Commission under the sponsorship of the United States Center for Strategic and International Studies, as well as Chairman of its banking and financing committees. Guterman served as personal financial advisor to the Minister of Privatization, Government of Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
.
Gerald Guterman is a founder of Albert Einstein College of Medicine. He was awarded "Humanitarian of the Year" by the Juvenile Diabetes Foundation. Guterman is a Founding Benefactor of Research Lab, Study of Tumor Cell Biology and Research Lab, Study of Immunodeficiency Disease at the National Asthma Center He is also a member Society of University Founders, Miami University..