He was forced to resign after being caught frequenting a Washington prostitute. We haven't seen much of former New York Governor Eliot Spitzer for about a year. But now, he's back in Washington society with some big real estate investments.
Eliot Spitzer, the former New York governor, who resigned in disgrace a year ago after he was caught patronizing a prostitute in a famous Washington hotel, has now returned to D.C. But this time he has reinvented himself to be an investor in the commercial real-estate market. Turns out Spitzer has a father who owns a DC-based real-estate company, making it possible for the disgraced former Governor to buy a strategic office building just blocks from the White House. The building is costing the Spitzer family $180 million.
But that's probably considered a small price for the family to pay to put Eliot Spitzer back in public life again. In a recent interview Spitzer declined to discuss the scandal that led to his resignation. But he did tell the
Wall Street Journal about his feelings about his gubernatorial career.
"Obviously it brought great joy for a great period of time."
The purchase of such a large building does not come at a good time for commercial real estate. Prices are falling and debt is high. The Spitzers bought the building from a distressed seller who had defaulted on part of its debt. But they're not getting a bargain-basement price. But Mr. Spitzer says his family is looking to hold onto the property for years.
"We aren't trying to time the global market."
The building the Spitzers are buying is just one block from the Mayflower Hotel, the spot of Mr. Spitzer's tryst, which led to his undoing. Asked if he has mixed feelings about that aspect of the sale, Spitzer said,
"No. We are buying a great building. That's why we are buying it."
Mr. Spitzer says he is being guided in his positive outlook for real estate despite today's troubles by his father's 60 years in the business. The elder Mr. Spitzer built some of the largest and most expensive apartment buildings in Manhattan, including the 56-story Corinthian and several luxury buildings on Fifth Avenue.
There is no indication yet if the younger Spitzer will be in training to take over his father's business.
