|July 2005: THE RICH
PEOPLE IN REAL ESTATE
NINE CALIFORNIA REAL ESTATE BILLIONAIRES
|39 QUARTERS OF REAL ESTATE APPRECIATION|
|California has its fair share of Real Estate millionaires – and
that would include pretty much everyone who owns property with land in
Santa Monica. But when it comes to billionaires – those who’ve built their
fortune developing tremendous amounts of property, California has nine. As
you would expect they are mavericks that conquered the Wild, Wild West.
The illustrious list includes:
1. DONALD BREN
The richest man in American real estate is 72-year-old Newport Beach Resident Donald Bren. This self-made millionaire with a net worth of $4.3 billion can best be described as “America's richest landlord,” as well as one of real estate’s great philanthropists. He is 6th wealthiest real estate billionaire and the 122nd richest man in the world.
Bren is chairman of The Irvine Company, a privately held real estate investment company best known for the balanced, sustainable, quality communities it has created on the 93,000-acre Irvine Ranch in Orange County. Finished plots sell for more than $1 million an acre. Also 400 office buildings, 35 shopping centers, 80
|For the eighth consecutive
quarter, the Pacific states led the nation in annual house-price
appreciation, growing at 19.2 percent from the first quarter of 2004
through the first quarter of 2005, according to Freddie Mac’s
Mortgage Home Price Index. Nationally, home values increased 11.8 percent on an annual basis, from the first quarter of 2004 through the first quarter of 2005.
California saw 23.44 percent price appreciation during that period. In Santa Monica in 2005, 134 single family
|REDONDO BEACH DRIVE THRU
420 N PACIFIC COAST HIGHWAY,
REDONDO BEACH, CA 90277
|DONALD BREN - THE RICHEST MAN IN
REAL ESTATE ALSO GIVES BACK
|The richest man
in American real estate is 72-year-old Newport Beach Resident Donald Bren.
This self-made millionaire with a net worth of $4.3 billion has been
described by Forbes as “America's richest landlord.” He is also one of
real estate’s great philanthropists.
Bren is chairman of The Irvine Company, a privately held real estate investment company best known for the balanced, sustainable, quality communities it has created on The Irvine Ranch in Orange County.
The son of a movie producer, a former Marine, and a Bachelor of Arts and Sciences from the University of Washington - Bren began his real estate career in 1958 with a $10,000 loan to build his first house. This exponentially grew into a home-building company, which he sold to International Paper for $34 million in 1970. Bren bought into the Irvine Ranch in 1977 with Al Taubman, Herb Allen, and Max Fisher for $337 million. As the Irvine Company, they developed and planned communities that cover 200 square miles of Orange County. He quietly purchased stock in the company, becoming the majority shareholder in1983; sole shareholder 1996. He expanded upon this empire by taking the apartment portion public as REIT and buying it back at a 21% premium.
Its 93,000 acres stretch from the Pacific Ocean 22 miles inland to the Cleveland National Forest. Finished plots on the 93,000-acre tract for more than $1 million an acre. Also included in the vast complex are 400 office buildings, 35 shopping centers, 80 apartment complexes and two luxury hotels. “My dream is that The Irvine Ranch will be known and celebrated as much for what is not
|BIG COMMERCIAL PROPERTIES|
|Great Playa Vista Mixed Use Property - $3.9m|
|AAA Location Mixed use Building in Downtown Santa Monica - $6.9m|
|SMALLER COMMERCIAL PROPERTIES|
|Redondo Beach Commercial - $1.15m|
|Great Room Retail in West L.A. + sign income $2.1m|
|Venice Canals Adjacent - $1.325m|
REVEALS 2005'S RICHEST REAL ESTATE INVESTORS
It’s money time. Every year, Forbes – the magazine of CEOs and millionaires - announces their list of the richest individual businessmen and women in the world.
According to the Forbes 2005 list of the “The World’s Richest People,” 46 out of the 691 billionaires (7 percent) made their money in the real estate industry, and not one real estate tycoon is in the top 30.
The list also includes an additional 18 billionaires (3 percent) made their fortune in diversified industries and investments that included significant holdings in real estate. Last year there, were only 587 billionaires in the world, 37 of whom made their money in real estate.
More details on these property titans: 17 of the 46 real estate billionaires (37 percent) inherited and then grew their fortunes, 29 of them (63 percent) are self-made billionaires. almost half (47 percent) of the real estate billionaires live in the United States, with eight living in California (17 percent), four in New York (9 percent), and three in Illinois (7 percent).
As you wheel down the list, keep in mind that no real estate mogul came close to equaling the finance of Mr. Microsoft, Bill Gates, who is No. 1 on the list for the 11th straight year with $46.5 billion, or the $44 billion of investor Warren Buffett (#2)…but the numbers are indeed impressive.
46 Billionaires Who Made Their Fortunes in Real Estate:
1. Raymond, Thomas, and Walter Kwok (#31, $10.9 billion), Hong Kong
2. Lee Shau Kee (#38, $9.3 billion), Hong Kong
|Mount Rushmore - Proof that one man's vision
can make a difference
|INTERESTING REAL ESTATE STATISTICS FOR YOU|
California Association of Realtors regularly publishes some very
interesting statistics. Allow us to share some with you...
* Statewide, the 10 cities and communities with the greatest median home price increases in 2004 compared with the same period a year ago were: Adelanto, 72.6 percent; Hesperia, 63.2 percent; Inglewood, 55.9 percent; Port Hueneme, 52.7 percent; Hercules, 49.3 percent; West Sacramento, 49.1 percent; Bellflower, 48.9 percent; San Bernardino, 48 percent;