Bren Falls in Forbes Ranking of the Rich : Wealth: He plummets from 19th last year to 35th on a list that reflects the declining fortunes of many of the nation’s elite.
Orange County’s Donald is poorer, but the Donald appears headed for the poorhouse.
Donald L. Bren, the Newport Beach real estate developer, joined many of the nation’s wealthiest last year in seeing a portion of his fortune slip away. According to Forbes magazine, Bren’s net worth now is estimated at $1.6 billion--$250 million less than in 1989.
But that’s nothing compared to the record of Donald Trump, the flashy real estate mogul and deal maker. Trump last year had a net worth $1.7 billion; this year he has less than $260 million--probably much less.
Trump, whose name had become synonymous with the high-flying, money-mad 1980s, earlier this year hit a cash crunch and had difficulty meeting debt payments. Now, Forbes says, Trump’s fortune is within “hailing distance of zero.”
But the two Donalds were not the only ones with financial problems over the past year. Many of the nation’s richest saw their fortunes decline as the nation nursed a hangover from its decade-long financial binge.
“In 1990, the rich have been getting poorer,” the Oct. 22 issue of Forbes notes.
Trump’s neighbor on Atlantic City’s casino row, Merv Griffin, disappeared from Forbes’ annual list of the 400 wealthiest Americans as his Resorts International went bankrupt. Other notable losers include media moguls Rupert Murdoch and Ted Turner.
Michael Milken, the junk-bond king turned convicted felon, remained on the list, with Forbes estimating his net worth at $700 million. Milken weathered the payment of a record $600-million fine earlier this year.
“This year, the entire Forbes 400 list seemed to stop going up and, on balance, started going down,” the magazine states.
The publication blamed much of the slide on the slumping stock market and drooping real estate prices. Fifty-three moguls on the list saw their incomes drop between $100 million and $880 million. The minimum net worth required was $15 million less than last year’s $275 million.
The richest person in the nation, according to Forbes, continues to be Metromedia founder John Kluge. A rags-to-riches German, he has made an estimated $400 million over the year, adding to a fortune now estimated at $5.6 billion.
Besides Bren, three other Orange County residents made the list. William Lyon ($350 million), Richard J. O’Neill ($300 million) and George L. Argyros ($290 million), all of whom made their fortunes in real estate, made their usual appearances on the list without any significant changes.
Bren, chairman of the Irvine Co., plummeted to 35th place on the list, down from 19th place last year, when Forbes put his fortune at $1.85 billion. The magazine does not allude to a specific cause for Bren’s slide in its annual listing.
But the amount of Bren’s loss roughly approximates the award that a court recently ordered the Irvine Co., which is controlled by Bren, to pay Joan Irvine Smith for her 11% stake in the company. The court ordered the company to pay her $149 million plus interest, an amount expected to total about $250 million.
Forbes also notes that the Irvine Co.’s development is being constrained by “strong environmental forces.” Last week, the company compromised on a proposed 2,000-acre development near Laguna Beach after environmentalists complained.
Bren is described by Forbes as a 58-year-old, twice-divorced, one-time “Hollywood rich kid.” He borrowed $10,000 to finance the construction of his first house. His home-building business took off, and he eventually bought the Irvine Ranch with four other investors in 1977. He subsequently bought off the others and was left with $1 billion worth of Orange County’s most picturesque and desired property.
A Bren spokeswoman said that the billionaire has a policy of never commenting on his rank on the Forbes list since he has never been consulted and is unfamiliar with the magazine’s methodology.
Even though the payment for her Irvine Co. stock alone would be almost enough to boost Smith, the granddaughter of the Irvine Ranch’s founder, onto the Forbes list, she was left off. She was on the list several years ago before the criteria to be included skyrocketed.
While Smith was conspicuous by her absence, Forbes lists Freedom Newspapers publisher Harry Howard Hoiles as still residing in Santa Ana. Hoiles, worth an estimated $375 million, now resides in Arizona.
The list also includes some notables who have extensive ties to Orange County even though they don’t live here. Gene Autry, best known locally as the owner of the California Angels, is listed at $300 million. Autry made his fortune buying and selling radio and television stations and listed by Forbes as living in Los Angeles.
There are also a smattering of Disney family members: Walt Disney’s widow, Lillian, has an estimated $315 million; Roy E. Disney has $575 million; and Sharon Disney Lund has $275 million.
Times wire services contributed to this report.
ORANGE COUNTY’S RICH Four Orange County residents made the list of the nation’s wealthiest individuals, according to the annual compilation by Forbes magazine. All four were also on last year’s list. Donald L. Bren Residence: Newport Beach Net worth: $1.6 billion 1990 rank: 35 1989 rank: 19 Summary: A slump in the real estate market, increasing political pressure against new development on Irvine Ranch-owned land and the court award likely to amount to more than $250 million to heiress Joan Irvine Smith all appeared to have contributed to Bren’s fall in his ranking on the Forbes list. Still, the magazine notes, Bren owns one-sixth of Orange County and has presided over the building of some of the poshest estates, condominiums and office towers in Southern California. William Lyon Residence: Coto de Caza Net worth: $350 million 1990 rank: 288 1989 rank: 283 Summary: Lyon, a retired Air Force general, made his fortune building low-cost homes for first-time buyers. He has dabbled in other business ventures as well, such as buying financially ailing AirCal in 1981 and selling it at a profit in 1986. It was merged into American Airlines. Lyon, an avid car collector, is active in Orange County social circles and remains a major home builder. Richard J. O’Neill Residence: San Juan Capistrano Net worth: $300 million 1990 rank: 350 1989 rank: 354 Summary: O’Neill shares a hefty inheritance with his sister, Alice O’Neill Avery of Los Angeles. He parlayed that into millions more through Southern California real estate development. He co-developed the massive Mission Viejo tract in the 1960s with Donald Bren and is currently building the 5,000-acre Rancho Santa Margarita planned community in South County. O’Neill has ranches in Mexico, California and Nevada. He is active in Democratic politics, and Forbes says he is known for his “disheveled appearance.” George Leon Argyros Residence: Newport Beach Net worth: $290 million 1990 rank: 370 1989 rank: 386 Summary: Argyros built a real estate empire after deciding it was a way to wealth. “If you work hard, it’s one of the frontiers that are left,” Forbes reports. He bought and sold baseball’s Seattle Mariners, netting $50 million despite the team’s losing record. He owns 5,200 apartment units. THE WEALTHIEST CALIFORNIANS
Individual Business Fortune (in millions) John T. Walton Inheritance, retail $2,500 Marvin H. Davis Oil 1,650 Donald L. Bren Real estate 1,600 David Packard Computers 1,400 Stephen D. Bechtel Jr. Engineering 1,400 David H. Murdock Investments 1,350 Gordon P. Getty Inheritance, oil 1,300 Kirk Kerkorian Investments 1,250 Margaret Cargill Inheritance, food 1,100 Joan Beverly Kroc Inheritance, fast food 920 Cargill MacMillan Jr. Inheritance, food 730 Michael R. Milken Financier 700 William R. Hewlett Computers 665 Andrew J. Perenchio Television 665 Helen K. Copley Publishing 630 Meshulam Riklis Finance 620 Alexander G. Spanos Real estate 600 Frederick W. Field Inheritance, media 600 Roy E. Disney Entertainment 575 George R. Roberts Leveraged buyouts 550
Source: Forbes
