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 03.01.2006 Paul Beitler on Using Challenges to Build a Bright Future |
Paul Beitler on Using Challenges to Build a Bright Future
Prominent Chicago office developer, J. Paul Beitler, President, The Beitler Company, has had great success over 25 years in the business, suffered major setbacks, and has come back to build an extremely flourishing business. In June, Beitler discussed his career with Michael Desiato, Editor-in-Chief, and Real Estate Media at the RealShare Conference in Chicago. Afterwards, I interviewed Mr. Beitler about his career. This article presents Beitler’s conversations with Mr. Desiato and myself.
Beitler’s Early Years
“I grew up in Detroit. At 12, my father abandoned our family. We were very poor so I worked in a flower shop. The education helped me later in business, because Japanese designers work with form, function and color in same way as architects do.
I worked my way through Michigan State University as a cook in a kitchen.
Then, I served in the army in the Vietnam War receiving seven medals including the Bronze Star. After Vietnam, I worked for FTD. Later, I worked for a Chicago company that leased airlines.
With my talents, education and desire to make money, I got my Broker’s license and began working for a small real estate company. I later joined Arthur Rubloff & Company. I was one of the Company’s highest income producers for four years.”
Starts Miglin-Beitler Powerhouse
“I asked Lee Miglin, at Rubloff & Company if I could work with him to become a developer. Lee kept putting me off saying, ‘When you find me the right property, the right tenants, etc, I’ll do it.’
“Lee refused to say yes even after I found the O’Hare property and ITW Sperry Univac offered to take almost the entire building if we developed it. So when he left his office one night, I covered every inch of his office walls with freezer paper and kept repeating the phrase in red ink, “Buy the O’Hare land now.” For the next week, nobody said anything. Finally, Lee says, ‘you’re a persistent young man. Let’s buy the property.’ So we started our partnership.”
Tragedy Hits
“Lee and I were building the world’s tallest building at Dearborn and Madison when Saddam Hussein started the first war in the Middle East. We had financing lined up with the Equity Bank of Japan. Afterwards, the deal collapsed even though we had sunk $25 million in the land.”
“In 1997, in one year, I lost everything. My mother died. I lost thirty pounds from a bout with kidney stones, and Miglin, my partner of 20 years, was brutally murdered by Andrew Cunanan who later killed Versace. Despite our 22 year age difference, Lee had become my friend and like a father to me. After his death, the company was torn apart as friends turned against me to fight for control.
On 9/11, 2001, I was being inducted in the Chicago Association of REALTORS® (CAR) Hall of Fame so I could not attend a meeting that was to take place in New York. We thought that we had lined up anchor tenants in Mayer, Brown, Rowe & Maw as well as Deloitte & Touche for an office tower to replace Equity Office Properties Trust’s 2 N. Riverside Plaza, as did Equity Office Properties Trust’s boss, Sam Zell. All the parties had flown to NY for a meeting on the project. The terrorist attacks permanently halted the deal.”
Chicago’s Future
“Chicago’s skyline is shrinking because no one will provide financing for tall buildings. Chicago cannot live on condominiums, retail, etc. Tall buildings are generators of revenue that make a city work.
Donald Trump has really been a win-win situation for Chicago. With Trump’s proposed skyscraper for the Chicago Sun-Times site, his TV show, The Apprentice and by selecting a young man from Chicago, Trump has showcased Chicago as a great place for young people.
Chicago’s future is bright. The City has created a lifestyle place for people that will attract many companies back to Chicago and help new companies grow.”
Beitler on Success
“Real estate is the best profession. You have the freedom, creativity, and the opportunity to make great money without the kind of investment that’s necessary in other fields.
After 1997, most people would have been bent in half. I contemplated how I could go on. I went to the water and wrote my feelings in the sand, and then the tide came in a washed away the writing. Instantly that became my metaphor for creating a new beginning. You have to have the vision, flexibility and the courage to hang in there to capitalize on the business.” |
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