EP44 The Liar's Ball

Vicky Ward’s “The Liar’s Ball” gives us a lens into the famous 2003 sale of the GM Building, one of the most valuable real estate buildings in American history. We’ll see how numerous real estate titans, from William Zeckendorf to Sam Zell, all played a role in this asset’s history - while we’ll particularly focus on the decisions made by the protagonist, Harry Macklowe. Macklowe’s journey to owning the GM Building teaches us vital lessons about excessive leverage and unlimited ambition, as he sought to build a legacy in the elite New York real estate world. I highly recommend this book to all investors, especially those in the real estate space, so let’s jump right into the story of the GM Building! ---- The Liar's Ball: The Extraordinary Saga of How One Building Broke the World's Toughest Tycoons - Vicky Ward Pairs well with our recent Zeckendorf episode! ---- Please share with a friend or rate 5 stars if you enjoyed this episode! | Find me on Twitter @ReadnRepeatPod ---- Show Notes: 2:55 - Harry Macklowe: Fueled by debt and driven by ego 5:29 - Zeckendorf begins the Upper East Side revitalization 11:34 - Cecilia Benattar leads the storied GM Building development 16:52 - GM buys the building themselves 19:30 - It ends up in the hands of Donald Trump 21:36 - Trump loses the building 24:13 - Your reputation follows you - Zell rejects partnering with Trump 25:43 - Eastdil puts it on the market for $1.2 billion! 28:01 - Demanding a non-refundable $50 million deposit 32:29 - Harry Macklowe signs an unmarked contract to win the deal 34:39 - The Famous Apple cube 40:47 - You can't turn off ambition (Macklowe's never enough mentality) 45:35 - Ultimate risk-on through maximum leverage & personal guarantees 47:47 - The vultures will simply wait you out to feed on your carcass 50:22 - Macklowe's fire sale to avoid bankruptcy 53:58 - He makes his comeback with 432 Park Avenue 56:59 - What gets you to the top may lead to your downfall...