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THE AGENDA Letters Dear Spear’s… Readers have their say on prime property in New York and London, and what the superyacht industry is doing to secure its own future Constructive argument SIR – As a chartered architect, I read with interest Suzanne Elliott’s interview with Harry Macklowe, veteran property developer and the creator of One Wall Street (Spear’s 90). Harry’s career journey and talent for reinvention and adaptation are fascinating. THE BRIEFING Property THE MAN WHO SHAPED NEW YORK Property developer Harry Macklowe isn’t done with Manhattan yet, he tells Suzanne Elliott HALFWAY THROUGH ASKING billionaire property developer Harry Macklowe what he thinks of Canary Wharf’s future, he answers his phone. His wife (Patricia Landeau, a French former fashion executive whom he married in 2019), he explains, calling from Paris excited about the imminent arrival of a granddaughter. He warns her he’s ‘extremely busy this morning’ as he promises to call back. One Wall Street is an exemplar of the future for development projects: repurposing existing buildings for new uses, which enables the real estate industry to align with the aspirations of the 2015 Paris Agreement, for those parties to reach net zero by 2050. He may be 86, but Macklowe is not reaching for his pipe and slippers just yet. After six decades in real estate, he remains at the forefront of property development in New York. He began his property career aged 21 as a real estate broker, but he soon became a developer. His empire has, at one time or another, included buildings such as 432 Park Avenue, at 1,396ft the tallest residential tower in the world when it was built; the Steve Jobs-designed glass Apple Cube at the General Motors Building, a building so iconic it attracts more visitors than the Statue of Liberty or Empire State Building; and the sleek glass-and-steel Metropolitan Tower at 57th Street that was the most lavish building in NYC on its completion in 1987. Building empires does not come without risk, and Macklowe’s success has not been as smooth as his glass-fronted skyscrapers. In 2007 he owned the General Motors Building and the Credit Lyonnais building. He then bought seven more New York City skyscrapers in a $6.8 billion deal from the Blackstone Group, financed largely by short-term loans from Deutsche Bank and Fortress Investment Group. But then the global financial crisis hit and forced Macklowe to sell off many of his real estate holdings, including the GM building. Once estimated to be worth £2 billion by Forbes, Macklowe has not been on the 400 list since falling off in 2008. In 2021 and 2022, three years after a highprofile divorce from his first wife Linda, whom he had married in 1959, the pair’s art collection, which included work by Mark Rothko and Jackson Pollock, became the most expensive ever to sell at auction, People say, ‘Oh, you’re so legendary and iconic,’ and I get embarrassed. Wouldn’t you get embarrassed? making $922.2 million. Speaking at the time, Macklowe said he was ‘just so pleased that the paintings have found a new home’. But he appears to meet with disaster as with triumph, and he returned to rule the Manhattan skyline. His latest development, built with the help of Robert AM Stern Architects, is One Wall Street, the metamorphosis of the iconic Ralph Walker art deco building that housed the Bank of New York for decades into landmark prime residences, part of what Macklowe calls a Downtown ‘renaissance’. The pandemic and the pivot to working from home accelerated a trend Macklowe had eyed years before when he bought the building in 2014. One Wall Street was ‘an opportunity to create a mini-city within a city’, says Macklowe in his languid New York drawl. It’s also a chance to capitalise on the migration of businesses away from the financial district as they seek to save money by cutting down on expensive office space. But the process hasn’t been easy. ‘As it turned out, it’s very challenging to convert an office building,’ he says. ‘But it has resulted in a splendid building. We have a very elegant building. I think we’ve done a very, very good job.’ Speaking over Zoom, Macklowe takes Spear’s on a tour, starting on the ground floor, where upscale grocery store Whole Foods, a gym and chic French department 05/01/2024 10:29 05/01/2024 10:29 We must not underestimate the level of skill, knowledge and care required to remodel a decades’ or even centuries-old building to meet new regulations and standards. In these instances, we designers and developers must be even more discerning with our material choice and craftsmanship; we should be constructing buildings which stand for hundreds of years, so that our buildings can be reinvented and adapted over the course of many generations to come. Simone de Gale CEO, Simone de Gale Architects Size matters SIR – As a residential property lawyer I read your article (Briefing, Spear’s 90) highlighting the significance of the 200 square metre limit on the size of new residences in Westminster with interest. I agree that this will undoubtedly further squeeze an already oversubscribed top end of the super-prime London property market. However, notably, equivalent limits on the size of new residences are not (currently) enforced in the neighbouring Royal Borough of Kensington and Chelsea (RBKC). 47 At the age of 86, Harry Macklowe has just completed a $2 billion project to convert the Art Deco skyscraper One Wall Street into 556 apartments, including a $75 million penthouse store Printemps make up part of this ‘mini-city’. A 23-metre indoor pool on the 38th floor and open-air terraces on several floors offer 270° views over New York’s harbour – a view Macklowe compares with Hong Kong. There are also co-working spaces, a club lounge and bar, and what Macklowe calls an ‘extraordinarily beautiful’ restaurant. The $2 billion project is now complete and 25 per cent of the properties sold – the majority, Macklowe says, to a domestic market. The 556 apartments range in price from a 677 sq ft studio for $1.1 million to the 13,500 sq ft multi-storey penthouse for $75 million that offers spectacular views over Long Island, the Statue of Liberty and New Jersey. The financial district, sometimes styled as ‘FiDi’, is still at the cusp of changing from a business area to a residential one. Of course, no quantity of luxury retail offerings or high-end restaurants will make it a real ‘neighbourhood’ if not enough people actually live there. Macklowe says the area has its own ‘drumbeat of excitement’ as he admits the rebirth of this section of Manhattan needs people to move in and buy the apartments, which in a sluggish market is a ‘challenge’, but one he relishes. Despite his enthusiasm for One Wall Street, it is 432 Park Avenue that remains his standout achievement. ‘It stands alone,’ he says. And it certainly does. The penthouse, with awe inspiring views across Central Park and Manhattan, is up for sale for $130 million. Designed by architect Rafael Viñoly, 432 is a so-called ‘supertall’. Completed in 2015, the spindly skyscraper was not without its critics. Some described it as the ‘middle finger’ because of its dominating presence over the skyline. For Macklowe, the building’s looming presence is a huge part of why it’s so special. ‘The building stands by itself,’ he says. ‘If you see a picture of the skyline, it’s there. I’m so proud of it. I guess it’s a lifetime achievement. It’s funny: buildings are inanimate, 432 is not it. It’s filled with life. It’s filled with excitement. It has a wonderful restaurant. It has a wonderful swimming pool. Nobody uses the swimming pool…’ Not everyone shares his enthusiasm. New York Magazine critic Justin Davidson called it a ‘genuine clunker’. There have been allegations of structural issues, with leaks, lift problems and unnerving creaks and groans. All buildings sway in the wind, and a building this tall and skinny (it has an aspect ratio of 15:1) moves more than most. The movement has been enough to stop the lifts, as the New York Times reported in 2021. Macklowe is used to criticism and unmoved by it. He was once described as 05/01/2024 10:29 05/01/2024 10:29 It therefore feels inevitable that developers will be turning to RBKC for the next wave of super-prime developments. They will need to be quick, though, as RBKC is in the process of replacing its 2019 local plan and it is highly likely that the new plan will limit the size of new residences. THE ISSUES Superyachts SU RFACE TENSION As $300 million, carbon-belching superyachts are doused with paint by environmental protesters, some The reality is that any short-term wave of new developments in RBKC will not alleviate the scarcity of trophy properties, particularly alongside the increasing numbers of UHNWs looking to London to invest in property. The fortuitous future owners of the residences coming through in the final schemes are likely to feel very confident of a positive return on their investments in years to come. Laura Conduit Partner, Farrer & Co IK CLC MC owners and manufacturers are admitting it’s time to confront the elephant in the marina Words PETER WILSON When billionaire John Caudwell criticised Rishi Sunak for weakening his net zero policies last autumn, some of the prime minister’s defenders chose a telling way to lash back at Caudwell. ‘Which one spouts more hot air?’ asked the Guido Fawkes political blog. ‘The 73-metre yacht, or the man who owns it?’ ‘I get this all the time,’ Caudwell tells Spear’s with a note of exasperation in his voice. Yes, his superyacht Titania ‘is absolutely dreadful for the envi- ronment… as are aircraft and people’s package tours going on holiday and travelling all around the world’. But weaponising a yacht to try to under- mine its owner’s calls for climate action is a distraction, Caudwell insists, from the huge overhaul of energy systems and agriculture that he believes is needed to deliver real progress on carbon emissions. ‘The really important point is that if you got rid of all the aircraft and all the yachts and even all the shipping… it would make hardly a scrap of dif- ference to the environment in the long term, because what’s needed is way more radical than that.’ Indeed, the International Maritime Organization calculates that all forms of shipping produce about three per cent of global greenhouse gas emissions, with yachting responsible for 1/500th of those shipping emis- sions, or 0.006 per cent of the total. The priority, Caudwell says, should be a broad switch to renewable uperyachts_v3MR.indd 106 uperyachts_v3MR.indd 106 Floating ideas SIR – Peter Wilson’s story on the challenges facing superyacht owners in a more sustainability-conscious 05/01/2024 16:20 05/01/2024 16:20 age (‘Surface tension’, Spear’s 90) was most interesting. Superyacht owners and yards are increasingly aware of the environmental challenges of superyacht use and ownership and are investing in innovative solutions to make their vessels more sustainable, such as hybrid propulsion, solar panels, hydrogen fuel cells, waste management systems and eco-friendly materials. They can contribute to the conservation and protection of marine life by supporting scientific research and philanthropic initiatives. Superyachts can play a major role in oceanic research, conservation and education though the use of laboratories, drones and submersibles, collecting essential data and improving knowledge. Moreover, the regulatory landscape is changing. For example, new, cleaner fuels are being developed 75 and the International Maritime Organization has imposed new and lower peryachts_v3MR.indd 107 peryachts_v3MR.indd 107 limits for nitrogen oxide (NOx) emissions for new engines on ships operating within special areas. 05/01/2024 16:20 05/01/2024 16:20 Sustainability is the new buzzword at superyacht conferences. Quentin Bargate Founder & CEO, Bargate Murray To submit a letter for publication in Spear’s, email milly.rochow@ spearswms.com. All correspondence will be considered for publication unless otherwise stated.
page 13
YOU KNOW YOUR CLIENT’S FINANCIAL GOALS. WE KNOW HOW PHILANTHROPY CAN HELP YOU REACH THEM. Visit www.CAFonline.org/advisers to see how we can work together.

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THE AGENDA Letters

Dear Spear’s…

Readers have their say on prime property in New York and London, and what the superyacht industry is doing to secure its own future

Constructive argument SIR – As a chartered architect, I read with interest Suzanne Elliott’s interview with Harry Macklowe, veteran property developer and the creator of One Wall Street (Spear’s 90). Harry’s career journey and talent for reinvention and adaptation are fascinating.

THE BRIEFING Property

THE MAN WHO SHAPED NEW YORK

Property developer Harry Macklowe isn’t done with Manhattan yet,

he tells Suzanne Elliott

HALFWAY THROUGH ASKING billionaire property developer Harry Macklowe what he thinks of Canary Wharf’s future, he answers his phone. His wife (Patricia Landeau, a French former fashion executive whom he married in 2019), he explains, calling from Paris excited about the imminent arrival of a granddaughter. He warns her he’s ‘extremely busy this morning’ as he promises to call back.

One Wall Street is an exemplar of the future for development projects: repurposing existing buildings for new uses, which enables the real estate industry to align with the aspirations of the 2015 Paris Agreement, for those parties to reach net zero by 2050.

He may be 86, but Macklowe is not reaching for his pipe and slippers just yet. After six decades in real estate, he remains at the forefront of property development in New York.

He began his property career aged 21 as a real estate broker, but he soon became a developer. His empire has, at one time or another, included buildings such as 432 Park Avenue, at 1,396ft the tallest residential tower in the world when it was built; the Steve Jobs-designed glass Apple Cube at the General Motors Building, a building so iconic it attracts more visitors than the Statue of Liberty or Empire State Building; and the sleek glass-and-steel Metropolitan Tower at 57th Street that was the most lavish building in NYC on its completion in 1987.

Building empires does not come without risk, and Macklowe’s success has not been as smooth as his glass-fronted skyscrapers. In 2007 he owned the General Motors

Building and the Credit Lyonnais building. He then bought seven more New York City skyscrapers in a $6.8 billion deal from the Blackstone Group, financed largely by short-term loans from Deutsche Bank and Fortress Investment Group. But then the global financial crisis hit and forced Macklowe to sell off many of his real estate holdings, including the GM building.

Once estimated to be worth £2 billion by Forbes, Macklowe has not been on the 400 list since falling off in 2008.

In 2021 and 2022, three years after a highprofile divorce from his first wife Linda, whom he had married in 1959, the pair’s art collection, which included work by Mark Rothko and Jackson Pollock, became the most expensive ever to sell at auction,

People say, ‘Oh, you’re so legendary and iconic,’ and I get embarrassed. Wouldn’t you get embarrassed?

making $922.2 million. Speaking at the time, Macklowe said he was ‘just so pleased that the paintings have found a new home’.

But he appears to meet with disaster as with triumph, and he returned to rule the Manhattan skyline. His latest development, built with the help of Robert AM Stern Architects, is One Wall Street, the metamorphosis of the iconic Ralph Walker art deco building that housed the Bank of New York for decades into landmark prime residences, part of what Macklowe calls a Downtown ‘renaissance’.

The pandemic and the pivot to working from home accelerated a trend Macklowe had eyed years before when he bought the building in 2014. One Wall Street was ‘an opportunity to create a mini-city within a city’, says Macklowe in his languid New York drawl. It’s also a chance to capitalise on the migration of businesses away from the financial district as they seek to save money by cutting down on expensive office space. But the process hasn’t been easy.

‘As it turned out, it’s very challenging to convert an office building,’ he says. ‘But it has resulted in a splendid building. We have a very elegant building. I think we’ve done a very, very good job.’

Speaking over Zoom, Macklowe takes Spear’s on a tour, starting on the ground floor, where upscale grocery store Whole Foods, a gym and chic French department

05/01/2024 10:29 05/01/2024 10:29

We must not underestimate the level of skill, knowledge and care required to remodel a decades’ or even centuries-old building to meet new regulations and standards. In these instances, we designers and developers must be even more discerning with our material choice and craftsmanship; we should be constructing buildings which stand for hundreds of years, so that our buildings can be reinvented and adapted over the course of many generations to come. Simone de Gale CEO, Simone de Gale Architects

Size matters SIR – As a residential property lawyer I read your article (Briefing, Spear’s 90) highlighting the significance of the 200 square metre limit on the size of new residences in Westminster with interest. I agree that this will undoubtedly further squeeze an already oversubscribed top end of the super-prime London property market. However, notably, equivalent limits on the size of new residences are not (currently) enforced in the neighbouring Royal Borough of Kensington and Chelsea (RBKC).

47

At the age of 86, Harry Macklowe has just completed a $2 billion project to convert the

Art Deco skyscraper One Wall Street into 556 apartments, including a $75 million penthouse store Printemps make up part of this ‘mini-city’. A 23-metre indoor pool on the 38th floor and open-air terraces on several floors offer 270° views over New York’s harbour – a view Macklowe compares with Hong Kong. There are also co-working spaces, a club lounge and bar, and what Macklowe calls an ‘extraordinarily beautiful’ restaurant.

The $2 billion project is now complete and 25 per cent of the properties sold – the majority, Macklowe says, to a domestic market. The 556 apartments range in price from a 677 sq ft studio for $1.1 million to the 13,500 sq ft multi-storey penthouse for $75 million that offers spectacular views over Long Island, the Statue of Liberty and New Jersey.

The financial district, sometimes styled as ‘FiDi’, is still at the cusp of changing from a business area to a residential one. Of course, no quantity of luxury retail offerings or high-end restaurants will make it a real ‘neighbourhood’ if not enough people actually live there. Macklowe says the area has its own ‘drumbeat of excitement’ as he admits the rebirth of this section of Manhattan needs people to move in and buy the apartments, which in a sluggish market is a ‘challenge’, but one he relishes.

Despite his enthusiasm for One Wall Street, it is 432 Park Avenue that remains his standout achievement. ‘It stands alone,’ he says. And it certainly does. The penthouse, with awe inspiring views across Central Park and Manhattan, is up for sale for $130 million. Designed by architect Rafael Viñoly, 432 is a so-called ‘supertall’. Completed in 2015, the spindly skyscraper was not without its critics. Some described it as the ‘middle finger’ because of its dominating presence over the skyline. For Macklowe, the building’s looming presence is a huge part of why it’s so special.

‘The building stands by itself,’ he says. ‘If you see a picture of the skyline, it’s there. I’m so proud of it. I guess it’s a lifetime achievement. It’s funny: buildings are inanimate, 432 is not it. It’s filled with life. It’s filled with excitement. It has a wonderful restaurant. It has a wonderful swimming pool. Nobody uses the swimming pool…’

Not everyone shares his enthusiasm. New York Magazine critic Justin Davidson called it a ‘genuine clunker’. There have been allegations of structural issues, with leaks, lift problems and unnerving creaks and groans. All buildings sway in the wind, and a building this tall and skinny (it has an aspect ratio of 15:1) moves more than most. The movement has been enough to stop the lifts, as the New York Times reported in 2021.

Macklowe is used to criticism and unmoved by it. He was once described as

05/01/2024 10:29 05/01/2024 10:29

It therefore feels inevitable that developers will be turning to RBKC for the next wave of super-prime developments. They will need to be quick, though, as RBKC

is in the process of replacing its 2019 local plan and it is highly likely that the new plan will limit the size of new residences.

THE ISSUES Superyachts

SU RFACE TENSION As $300 million, carbon-belching superyachts are doused with paint by environmental protesters, some

The reality is that any short-term wave of new developments in RBKC will not alleviate the scarcity of trophy properties, particularly alongside the increasing numbers of UHNWs looking to London to invest in property. The fortuitous future owners of the residences coming through in the final schemes are likely to feel very confident of a positive return on their investments in years to come. Laura Conduit Partner, Farrer & Co

IK

CLC

MC

owners and manufacturers are admitting it’s time to confront the elephant in the marina

Words PETER WILSON

When billionaire John Caudwell criticised Rishi Sunak for weakening his net zero policies last autumn, some of the prime minister’s defenders chose a telling way to lash back at Caudwell. ‘Which one spouts more hot air?’ asked the Guido Fawkes political blog. ‘The 73-metre yacht, or the man who owns it?’

‘I get this all the time,’ Caudwell tells Spear’s with a note of exasperation in his voice. Yes, his superyacht Titania ‘is absolutely dreadful for the envi-

ronment… as are aircraft and people’s package tours going on holiday and travelling all around the world’. But weaponising a yacht to try to under-

mine its owner’s calls for climate action is a distraction, Caudwell insists,

from the huge overhaul of energy systems and agriculture that he believes is needed to deliver real progress on carbon emissions.

‘The really important point is that if you got rid of all the aircraft and all the yachts and even all the shipping… it would make hardly a scrap of dif-

ference to the environment in the long term, because what’s needed is way more radical than that.’

Indeed, the International Maritime Organization calculates that all forms of shipping produce about three per cent of global greenhouse gas emissions, with yachting responsible for 1/500th of those shipping emis-

sions, or 0.006 per cent of the total.

The priority, Caudwell says, should be a broad switch to renewable uperyachts_v3MR.indd 106 uperyachts_v3MR.indd 106

Floating ideas SIR – Peter Wilson’s story on the challenges facing superyacht owners in a more sustainability-conscious

05/01/2024 16:20 05/01/2024 16:20

age (‘Surface tension’, Spear’s 90) was most interesting.

Superyacht owners and yards are increasingly aware of the environmental challenges of superyacht use and ownership and are investing in innovative solutions to make their vessels more sustainable, such as hybrid propulsion, solar panels, hydrogen fuel cells, waste management systems and eco-friendly materials.

They can contribute to the conservation and protection of marine life by supporting scientific research and philanthropic initiatives. Superyachts can play a major role in oceanic research, conservation and education though the use of laboratories, drones and submersibles, collecting essential data and improving knowledge.

Moreover, the regulatory landscape is changing. For example, new, cleaner fuels are being developed

75

and the International Maritime Organization has imposed new and lower peryachts_v3MR.indd 107 peryachts_v3MR.indd 107

limits for nitrogen oxide (NOx) emissions for new engines on ships operating within special areas.

05/01/2024 16:20 05/01/2024 16:20

Sustainability is the new buzzword at superyacht conferences. Quentin Bargate Founder & CEO, Bargate Murray

To submit a letter for publication in Spear’s, email milly.rochow@ spearswms.com. All correspondence will be considered for publication unless otherwise stated.

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