Jane Dotson
American billionaire businessman Larry Silverstein is known for his involvement with the World Trade Center, having signed a 99-year lease on the complex in June 2001, two months before the 9/11 attacks. The lease was sold to Silverstein for $3.2 billion, and he took out an insurance plan that covered terrorism. After the attacks, Silverstein received $4.55 billion from his insurance company, having argued that the two plane crashes constituted two separate attacks.
| Characteristics | Values |
|---|---|
| Name of the leaseholder | Larry Silverstein |
| Date of acquiring the lease | June 2001 or July 2001 |
| Duration of the lease | 99 years |
| Insurance policy | Terrorism Insurance |
| Insurance payout | $4.55 billion or $4.6 billion |
| Net worth | $1 billion |
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What You'll Learn
Larry Silverstein's WTC lease
Larry Silverstein, an American billionaire businessman, signed a 99-year lease on the World Trade Center complex in June or July 2001, just two months before the 9/11 terrorist attacks. The WTC lease was sold to Silverstein for $3.2 billion, and he was still paying millions per month in rent for the site after the towers fell.
Silverstein was the president and CEO of Silverstein Properties, a consortium of investors and lenders that included GMAC Commercial Mortgage, Westfield America Inc., and real estate investor Lloyd Goldman. All these entities had a say in the insurance coverage for the properties.
Silverstein took out an insurance plan that covered terrorism, and after 9/11, he took the insurance company to court, arguing that he should receive double the payout because there were two separate attacks. He won the case and was awarded $4.55 billion, though he had initially sought $7.1 billion based on the insurance policy's maximum coverage of $3.55 billion per event.
Silverstein also faced challenges in the rebuilding process, including disputes with other parties such as the Port Authority. In an agreement reached in April 2006, Silverstein retained the rights to build three office towers, while One World Trade Center and Tower Five would be owned by the Port Authority.
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WTC's terrorism insurance
Larry Silverstein, an American billionaire businessman, signed a 99-year lease on the World Trade Center complex in June or late July 2001, two months before the 9/11 attacks. Silverstein Properties acquired the twin towers, buildings 4 and 5, and the basement levels outside the leased buildings. Silverstein led a consortium of investors and lenders, including GMAC Commercial Mortgage, Westfield America Inc., and real estate investor Lloyd Goldman, who all had a say in the insurance coverage of the properties.
Silverstein took out an insurance plan that covered terrorism, which was not uncommon in commercial insurance policies at the time. After the 9/11 attacks, Silverstein and his insurers became embroiled in a dispute over whether the attacks constituted one event or two under the terms of the insurance policy, which provided a maximum of $3.55 billion in coverage per event. Silverstein argued that there were two separate attacks and, therefore, claimed he should be paid double the amount. He won the case and was awarded $4.55 billion, although this was less than the $4.6 billion he had sought.
While some have accused Silverstein of profiting from the attacks and even committing insurance fraud, it is important to note that he was not the sole decision-maker regarding insurance coverage, and that terrorism insurance was not uncommon in commercial policies at the time. Additionally, Silverstein had previously experienced the 1993 bombing of the World Trade Center, which may have influenced his decision to ensure his new lease included terrorism insurance.
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Silverstein's insurance claim
Larry Silverstein, an American billionaire businessman, signed a 99-year lease on the World Trade Center complex in June 2001, two months before the 9/11 attacks. He acquired the WTC for 3.2 billion USD in late July 2001. Silverstein also led a consortium of investors and lenders, including GMAC Commercial Mortgage and Westfield America Inc., who had a say in the insurance coverage.
Silverstein took out an insurance plan that covered terrorism, and after 9/11, he argued that the attacks constituted two separate events, entitling him to double the payout. He won the case and received $4.55 billion from the insurers, though he had sought a higher amount. The protracted dispute with insurers and the legal proceedings centred on whether the attacks were one or two events, as the insurance policy had a maximum coverage of $3.55 billion per event.
While some have questioned the timing of Silverstein's insurance plan, it is important to note that commercial insurance policies sold in the U.S. before 9/11 typically covered terrorist incidents as the risk was considered low. Additionally, the previous 1993 bombing at the World Trade Center likely influenced Silverstein's decision to ensure coverage for terrorism.
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WTC insurance payout
Larry Silverstein, an American billionaire businessman, acquired the World Trade Center (WTC) for $3.2 billion in late July 2001. He signed a 99-year lease on the WTC complex in June 2001, two months before the 9/11 attacks.
Silverstein took out an insurance plan that covered terrorism. After 9/11, he went to court, claiming he should be paid double because there were two separate attacks. The insurance payout was $4.55 billion, which was reached in 2007. This was not the end of the legal battles, as Silverstein sued the insurers again in 2008, winning $1.2 billion in 2010 from American Airlines and United. The final lawsuit was settled in 2018 against Silverstein.
It is important to note that Silverstein was not the sole leaseholder of the WTC. He led a consortium of investors and lenders, including GMAC Commercial Mortgage, Westfield America Inc., and real estate investor Lloyd Goldman. All these entities had a say in the insurance coverage and had claims on the insurance payouts.
The insurance payout was used to rebuild the WTC complex, including the "Freedom Tower" (the new 1 WTC). Silverstein retained the rights to build three office towers: 150 Greenwich Street, 175 Greenwich Street, and 200 Greenwich Street.
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Silverstein's net worth
Larry Silverstein is an American billionaire businessman with an estimated net worth of US$1 billion as of December 2024, according to Forbes. Silverstein was born in Brooklyn and started his career in real estate with his father, establishing Silverstein Properties.
Silverstein is most well-known for his involvement with the World Trade Center, where he signed a 99-year lease for the World Trade Center complex in June 2001, two months before the September 11 attacks. He acquired the WTC for $3.2 billion in late July 2001 and later won $4.55 billion in insurance payments to cover his losses from 9/11. Silverstein also ran into multiple disputes with other parties during the rebuilding effort, including with the Port Authority.
Aside from the World Trade Center, Silverstein has numerous other buildings in New York City, including 1177 Avenue of the Americas, 529 Fifth Avenue, and 570 Seventh Avenue. He also developed one of New York's tallest residential towers at 30 Park Place, where he owns a $34 million penthouse overlooking the World Trade Center complex. Silverstein was also involved in the development of the Ronald Reagan Building in Washington, D.C., and the Silver Towers, which opened in 2009.
It is important to note that Silverstein was not the sole leaseholder of the World Trade Center, as he led a consortium of investors and lenders, including GMAC Commercial Mortgage and Westfield America Inc. Despite the controversies surrounding his insurance claims, Silverstein has continued to expand his real estate holdings and maintain a significant net worth.
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Frequently asked questions
Yes. Larry Silverstein signed a 99-year lease on the Twin Towers in June or late July 2001, two months before the 9/11 attacks. He also signed an insurance policy that covered terrorism.
Larry Silverstein had specifically sought "terrorist insurance" because he remembered the 1993 World Trade Center bombing.
Larry Silverstein initially sought $3.55 billion in insurance coverage, but after a protracted dispute with his insurers, he received $4.55 billion in 2007. Other sources state that the insurance payout was $4.6 billion.
Larry Silverstein bought the Twin Towers before the 9/11 attacks.
No, Larry Silverstein's wife insisted that he attend a medical appointment on the morning of the attacks, inadvertently saving his life.
