Buying And Owning Landmarks (Empire State Building, Green Bay Packers)

By: ispeculatornew
Date posted: 12.06.2011 (5:00 am) | Write a Comment  (0 Comments)

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Have you ever been to New York?  To say that the city is unique and exceptional would be making a gross understatement. It’s an amazing place to be, a city that I am amazed at every single time, I have so many great memories, would probably be in a different place in my life without it. Since the tragic events of 9/11, the Twin Towers are history and New York is mostly symbolized by both the Statue of Liberty and the Empire State Building. Who could argue for one over the other? I personally associate the Empire State Building to everything that fascinates me about the city.

Owning A Piece Of The Empire State Building?

News came out that the current owners, Malkin Holdings LLC are on a path that could very well lead them to a REIT IPO. Why? Getting access to additional capital is of course a major reason and it would certainly be a great feeling to be a partial owner the next time I walk by or go up the Empire State Building.

Owning A Piece Of A Pro Sports Team

Only one pro team in North America is publicly owned and that is the Super Bowl Champions (and still undefeated) Green Bay Packers. I’ve been public about the fact that my team is NOT the Packers but even I think the idea of partially owning a sports theme incredibly appealing.  The Packers are planning to spend $130 million to renovate and improve their current stadium and will be selling shares today at Packers.com. You could be joining the already existing 112,205 shareholders.

Why Are You Buying?

I think it’s important to start off by asking yourself why you are making this purchase. Is it because you are trying to make a valuable investment that will pay you passive income and increase over time or is it simply because you want to be able to call yourself an “owner”?

Both Reasons Could Be Perfectly Valid

I personally could very well imagine myself buying something like that just for the fun of it. Believe me, if a share of the Colts was made for sale, I would be first in line even if the investment might not be the soundest one around.

You Might Be Overpaying

The unfortunate part of such purchases is that you might end up paying more than you would otherwise pay because of the sentimental value that pushes many to buy with little regards to pricing. Take the Green Bay Packers shares. By buying one, you will spend $250 and gain a share that’s value does not fluctuate, that does not pay any dividends, etc. It’s unclear if the future IPO of a REIT that would include the Empire State Building would be a much better deal (probably would), but if you are doing this from an investment perspective only, it might be smart to look around and find comparable offerings to see how much you are paying for the “privilege” of calling yourself a shareholder the next time you visit the historical landmark.

Have you or do you intend to buy one of these two historical assets?

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