Jeff Sutton (real estate developer)

Jeff Sutton (born 1960) is a billionaire New York real estate developer and the founder of Wharton Properties.

Jeff Sutton
Born1960 (age 5960)
NationalityAmerican
EducationUniversity of Pennsylvania
OccupationReal estate developer
Known forFounder of Wharton Properties
Net worthUS$4.1 billion (November 2019) [1]
Children5

Early life

Jeff Sutton was born to a Sephardi Syrian Jewish family,[2][3] in Gravesend, Brooklyn, the son of an importer of retail goods.[4] In 1981,[4] he graduated with a B.A./B.S. from the University of Pennsylvania.[1]

Career

Wanting to get into New York real estate and lacking the funding to compete with the old established real estate families (e.g. Dursts, Roses, Fishers, Rudins, Tishmans, and the Lefraks), Sutton took a different tack: he would first find a potential tenant, determine where they wanted a store, and then seek to buy out the lease from the tenant at the location. In some cases, he would buy out the landlord using the signed lease as support to secure financing in order to buy the property.[4][5] In the early 1990s, his strategy worked with Payless Shoes in upper Manhattan, Brooklyn, the Bronx, and Queens. In the late 1990s, he applied the same approach with CVS Pharmacy in lower Manhattan partnering with New York City's largest landlord, SL Green Realty.[4] Sutton emphasizes securing triple-A national retail chains as tenants.[6]

Transactions

Significant properties include:[4]

As of 2013, Wharton Properties owns 120 properties throughout New York City.[6][7]

Sutton's unique tactic of buying buildings from landlords and then gouging the new tenants with grossly inflated rental rates has lead to the mallification of New York City, turning what were once thriving local neighborhoods filled with independent businesses into shopping centers filled with chain stores. He often works in partnership with Joe Sitt's Thor Equities with the two selling buildings between each other and profiting off the differences.[8]

Personal life

Sutton is married and has five children.[1] In June 2013, he purchased a residential property on the Jersey Shore for $22.6 million.[9]

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References

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