Joseph Chetrit | |
|---|---|
| Born | Morocco |
| Nationality | American |
| Children | Jonathan Chetrit Daniel Chetrit Sam Chetrit Mikey Chetrit |
Joseph Chetrit is an Americanreal estate investor anddeveloper and founder of the Chetrit Group, which privately owns more than 20 million square feet of real estate.
Chetrit was born to Simon and Alice Chetrit, a Jewish family in Morocco.[1][2] He has three brothers: Meyer, Jacob and Juda Chetrit.[3] The Chetrit family made their initial fortune in textiles[1] and shipping.[4] In 1996, his father and his brother David were arrested and jailed in Morocco for smuggling and were cited as an example of injustice by theU.S. State Department in their annual human rights report. They were pardoned and released in 1998.[4]
Chetrit arrived in the United States initially tasked with furthering the family's textile business working as an importer/exporter. After pleading guilty to one felony count of violating customs laws in 1990 (and being sentenced to three years’ probation), he turned to real estate assembling a portfolio of outer-borough residential properties which he sold for $70 million in the early 1990s.[1] In 1994, he entered into his first commercial real estate transaction, purchasing an office building on West 44th Street for $13 million.[1] In 2002, he partnered with Brooklyn-basedSimon Dushinsky's Rabsky Group to develop a portfolio of properties he purchased out of bankruptcy inWilliamsburg, Brooklyn.[5] In 2004, Chetrit was the lead investor in a group that purchased the 110-storySears Tower in Chicago for $840 million with partnersJoseph Moinian, and Israel Gluck, eventually changing the name to the Willis Tower in 2009.[1][6]
Other purchases include Park West Village on theUpper West Side, theInternational Toy Center onMadison Square Park, 500 and 512 Seventh Ave. in theGarment District, and the Caledonian Hospital complex inSunset Park, Brooklyn.[7] In 2009, Chetrit purchased a portion of the real estate portfolio of prolific Brooklyn real estate developerIsaac Hager who declared bankruptcy.[8]
In 2011, after a disagreement, the Chetrit brothers divided the family business into two entities with Joseph and Meyer operating under theChetrit Group; and Jacob and Juda under theChetrit Organization.[3][9] Also in 2011, partnering withDavid Bistricer, he purchased theChelsea Hotel for $80 million;[10][11] they sold their interest in 2013.[12][13]
In 2013, he and his partner David Bistricer, purchased550 Madison Avenue in New York City for $1.1 billion with plans to convert the building into condominiums.[14][15] In 2016, they halted the project due to fears of an over-supply of luxury housing; instead selling the building for $1.4B+ to TheOlayan Group of Saudi Arabia.[16] Additional projects include the renovation of5 Beekman Street withCharles Dayan,[17][18] and the $290 million 2005 purchase along with partners Charles Dayan and Yair Levy of the 800,000 sq ft (74,000 m2) 620 Sixth Avenue and its 2011 sale toRXR Realty, LLC for $500 million.[19]
As an investor who made his primary wealth from buying low in a downturn and selling high later, Chetrit's strategy has been market timing rather than development. He typically selects structures with flexible zoning (which broadens the pool of future purchasers) in areas seeing a downturn and thanks to his minimal use of debt, he has the ability to wait the market out. At times this approach creates conflict with local businesses who want immediate change.[20]
Chetrit and his wife Nancy have four children. Chetrit speaks four languages: Arabic, Hebrew, French, and English. Chetrit practicesOrthodox Judaism, and lives in New York City.[1]