Amazing Asset
Want to get the attention of that banker or institutional investor you’re trying to woo? Easy: Buy a professional baseball team. That’s what Sterling Equities did when it bought a portion of the Mets in 1980. Two years ago, the company took full ownership. “It opens lots of doors for us,” says Michael Katz, senior executive vice president. “People are enthralled with it. They enjoy going to games. There’s a lot of entertaining there.”
Sterling’s bankers also see the advantages. “It’s very, very easy to prequalify them as a serious, large player,” says Charles Frischer, senior vice president of Capri Capital in Arlington, Va., one of the company’s lenders. “People know that if you own a major league baseball team in America, you’re a big player.” Since taking over the Mets two years ago, Sterling carried many of its real estate business practices to the baseball business. For instance, the company wants Mets customer service agents to take the same care with fans that its apartment leasing agents do with tenants. “If you call for a ticket and you get a nasty person on the phone, it puts a negative spin on the experience before you even get there,” says Richard Wilpon, a senior executive vice president with Sterling.
Owning the Mets also offers some more measurable advantages as well, as Sterling combines its baseball and investment business to leverage its purchasing power. One example: travel, where Sterling obtains discounted rates for the team and company members. A baseball scout flying to Chicago to scout the Cubs for a three-game series goes under the same travel plan as someone evaluating a 300-unit apartment property in the Windy City.
Sterling Equities at a Glance
- What: Investor and manager of multifamily and commercial real estate
- Leaders: Michael Katz, senior executive vice president and chief financial officer; Richard Wilpon, senior executive vice president; Tom Osterman, executive vice president
- Headquarters: New York
- Markets: National markets including College Park, Md., Birmingham, Ala., and Kansas City, Mo.
- Portfolio: 17,500 apartments in metropolitan areas across the country, including St. Louis, Denver, and New York
- Founded: 1972
- Employees: Approximately 200
