Twin towers

The Twin Towers were white elephants that their owner, the Port Authority of New York and New Jersey, had wanted to demolish for years but couldn’t because the buildings were contaminated with asbestos that would have cost millions to remove.

Among other things, the buildings were not equipped for WiFi and the occupancy rate was below 50%. Why on earth would anyone want to rent out these outdated junk properties?

Why actually?

In January 2001, Silverstein made a $3.2 billion offer to lease-purchase the World Trade Center complex. Silverstein’s negotiated offer was completed on July 24, 2001, less than two months before 9/11. The Port Authority agreed to lease the Twin Towers to Larry Silverstein, and he agreed to pay the equivalent of $3.2 billion over the next 99 years. This was the first time in the complex’s 31-year history that management was changed.

The lease covered One, Two, Four and Five World Trade Centers and approximately 425,000 square feet of retail space. Silverstein put up just $14 million of his own money to secure the deal. The agreement gave Silverstein, as tenant, the right and obligation to rebuild the buildings in the event of destruction.

The insurance policies for the World Trade Center buildings WTC 1, 2, 4 and 5 had a total face amount of $3.55 billion and the insurance policy he took out included protection against terrorist attacks.