The soft economy has hit even the richest in Southern California, dropping the total net worth of the area’s wealthiest by billions of dollars in the past year.
That’s not surprising as the Southland’s biggest billionaires made their money through real estate and entertainment.
Kerkorian
The wealthiest man in Southern California, activist investor Kirk Kerkorian, saw his fortune shrink 34% to $10.6 billion, according to the Los Angeles Business Journal’s May list of the 50 wealthiest Angelenos.
The 90-year-old Beverly Hills resident is heavily invested in Las Vegas and is a majority owner of MGM Mirage.
With tourism sinking amid high gas prices and a possible looming recession, Kerkorian sold a stake of his hotels to Dubai World after his stock value dropped nearly 50%.
He picked up 100 million shares of struggling Ford Motor Co., giving him a 4.7% stake in the automaker.
But that doesn’t mean Kerkorian is finished with Las Vegas. He is in talks with venture partner Kerzner International Holdings Ltd. to develop 40 acres into a casino and resort at the north end of the Strip.
Kerkorian’s lowered wealth puts him in a virtual tie for the title of Southern California’s richest with Donald Bren of The Irvine Company.
The Orange County Business Journal conservatively estimates Bren’s wealth at $10.5 billion, holding steady from last year despite an overall decline in the real estate market.
With some real estate sources estimating his wealth at $15 billion to $20 billion, Bren could be the wealthiest in Southern California.
With the office market and housing development taking a slide in the past year, the Irvine Co. focused on apartments and the Resort at Pelican Hill, Bren’s crown jewel.
The Irvine Co. paid $1.4 billion for a 90% stake in 16 local complexes owned by Archstone-Smith. It also opened more than 2,500 apartments.
The 504-acre Resort at Pelican Hill received rave reviews at its unveiling of the golf courses, restaurant and pro shop late last year. The rest of the resort,204 bungalows and suites, 128 villas, meeting space and a spa,should open this fall.
Only OCer
The 76-year-old Bren is the only person from OC to rank among the top 20 wealthiest in Southern California. Nearly all of region’s wealthiest live in Los Angeles.
San Diego’s richest person, Charles Brandes, ranks No. 13 in the region at $2.6 billion, according to the San Diego Business Journal’s December list of the wealthiest there.
San Diego Switch
Brandes took the top spot in San Diego from Ernest Rady, who oversaw the sale of Irvine-based Westcorp to Wachovia Corp. for $3.4 billion in 2006.
Brandes started Carmel Valley-based Brandes Investment Partners more than 30 years ago. His company, which has $93 billion under management, has seen some stirrings in a few investments, including Taro Pharmaceuticals Industries Ltd., which is undergoing a hostile takeover bid from Sun Pharmaceuticals Industries Ltd., and Marks & Spencer Group PLC, which has drawn ire from some stockholders over executive changes.
Others among the Southland’s richest made their fortunes in media, homebuilding and entertainment.
The third-richest person in Southern California (and second in L.A.) is Sumner Redstone. The media mogul lost 17% of his wealth in the past year, dropping to $7 billion, according to the Los Angeles Business Journal.
Weak advertising spending and the writers’ strike hit CBS Corp. and Viacom Inc., where he holds stakes.
Rounding out the region’s top five richest is Eli Broad at $6.9 billion and David Geffen at $4.8 billion,both increased their fortunes last year.
Broad, who cofounded AIG SunAmerica Life Assurance Co. and homebuilder Kaufman & Broad, has been making headlines of late for his philanthropic endeavors and his support of downtown L.A.’s now stalled Grand Avenue project.
Geffen, the youngest of the big billionaires at 65, cofounded DreamWorks LLC, which hit gold with the “Shrek” trilogy and this year with “Kung Fu Panda.” He officially retired from the movie business after “Dreamgirls” found big-screen success.
Geffen went head-to-head with real estate tycoon Sam Zell to buy the Los Angeles Times but lost out with a $2 billion bid. He is rumored to be in talks again to buy the troubled newspaper.
Worth $85b
The top 20 richest in Southern California have a combined worth of $85.4 billion, with the last spot on that elite list held by William Barron Hilton, who counts $2.3 billion to his famous name, according to the Los Angeles Business Journal.
In all, there were 53 billionaires in Southern California on the three Business Journal lists, with nine residing in OC.
Weekend Wealthy
If you can’t live here, you still can play here.
Orange County is a second (or even third or fourth) home for many rich folks. They come here for the weather, beaches, shopping and dining. A few have their primary residences in Nevada (where taxes are lower) and keep waterfront homes here.
Our wealthiest package wouldn’t be complete without a little name dropping of some notable people with homes here, mostly for leisure, or those who come for extended stays at the county’s nicest hotels.
– Warren Buffett
– Arte Moreno
– Roy Disney
– Russell Goldsmith, chief executive, City National Bank
– Mitchell Chait, entertainment entrepreneur
– Pierre Omidyar, founder, chairman, eBay Inc.
– David Merage, cofounder, Chef America Inc.
– Alan Simon, chairman, Omaha Steaks International Inc.
– Steven F. Udvar-Hazy, chief executive, International Lease Finance Corp.
– Lodwrick Cook, former Atlantic Richfield Co. chairman
– Jack Kemp, former U.S. representative, Housing and Urban Development secretary
– Steven Mihaylo, founder, Inter-Tel Inc.
– Joel Laub, chief executive, Astoria Homes LLC
– Jerry Herbst, owner, chairman, president, Terrible Herbst Inc.
– Gary Primm, former chairman, chief executive, Primadonna Resorts Inc.
– Charles Mathewson, chairman emeritus, International Game Technology
– Ken Sullivan, cofounder, principal, Centra Properties LLC
– Paxson Offield, president, Santa Catalina Island Co.
– Benson Ford Jr., great-grandson of Henry Ford
– Jim Easton, chairman, chief executive, Easton Sports Inc.
– Scott Blum, founder, Buy.com, ThinkTank LLC
– Steve Johnson, funding partner, chief executive, Sage Hill Partners;
cofounder, Johnson-Grace Co.
