Siheyuan, Shazhu: I have both parents in this life

Chapter 270 New York Real Estate Turmoil
Wilson arrived quickly, and with his local connections, the acquisition team's work progressed rapidly. But acquiring a company is never easy.

Real estate was relatively simpler. A week later, a report submitted by the newly formed real estate analysis team was placed on He Yuzhu's desk.

The report highlighted one target: the Commodore Hotel, located next to Grand Central Station in New York City, at the intersection of 42nd Street and Park Avenue.

This is an old landmark building covering nearly 20 square meters, which is on the verge of bankruptcy due to years of disrepair and chaotic management. It is like a dusty giant, collapsed in the heart of Manhattan.

The report analyzes its core value: its unparalleled location, enormous potential size, and the New York City government's urgent desire to revitalize the property and create jobs. The report also points out that a young real estate developer named TACO is actively lobbying the city government to acquire the property at a very low price and plans to convert it into a luxury hotel.

"CP?" He Yuzhu was quite familiar with this name. When they were young, it was nothing special, but now that they're older, they seem to love stirring things up.

"What does he plan to do?"

“Boss,” Chen Ming, who was in charge of real estate analysis, reported, “mainly tax-free, forty years.”

He Yuzhu listened while gently tapping his fingers on the table.

So he was trying to get something for nothing? This kid has big ambitions, and even bigger audacity.

"What stage are they talking about now?" He Yuzhu asked.

“There is a lot of resistance and controversy right now,” Wilson said. He is now the chief legal counsel and interim real estate coordinator for the University of Tokyo. “Many lawmakers and civic groups criticize this as a plunder of public funds, giving away tax revenue that should be used for city services to private developers. But TACO’s lobbying campaign is very aggressive, and he is extremely adept at using the media to create momentum. At present, there is no stalemate.”

A glint of light flashed in He Yuzhu's eyes.

If that's the case, it means there's still a chance.

The location and size of the KMDER store perfectly matched his need to establish a foothold in a core North American city.

The renovated high-end hotel will not only bring stable cash flow, but also serve as Dongda Technology's flagship store and social center in North America. Its other uses are self-evident.

“We’ll take this project.” He Yuzhu’s voice was not loud, but it carried an undeniable determination. “Isn’t it supposed to be tax-free for 40 years? We’ll split it in half, and we won’t need any loans or government funding.”

Chen Ming and Wilson were both taken aback. "Boss, you mean...we'll acquire and renovate it entirely? And the condition is a 20-year tax exemption?"

“Yes, if it’s not feasible, then don’t offer tax exemptions.” He Yuzhu nodded. “Tax exemptions are a double-edged sword. They may seem like a good deal, but they tie Dongda University and the municipal government to opposite sides, making them targets of public opinion for the next few decades. What we need is long-term commitment, not short-term speculation. We need to invest real money, buy legitimately, build legitimately, and pay taxes legitimately. That’s the way to establish ourselves.”

“But boss, a full acquisition plus renovation would require an astronomical investment! TACO dared to request tax exemption precisely because they saw that the municipal government lacked the funds for maintenance and wanted to get rid of the burden,” Chen Ming reminded him.

"Money is not a problem." He Yuzhu's tone was calm, yet it revealed a strong sense of confidence.

The billions of dollars he just siphoned off from the financial markets are the source of his confidence.

"Do two things immediately: Wilson, immediately establish a hotel group called 'Grand Hyatt,' and then, under the name of 'Grand Hyatt,' formally express our strong interest in the Komodoro Hotel and our willingness to acquire it in its entirety to the city government. Isn't the government trying to create jobs? We're very good at this."

"Boss, you're brilliant! We definitely need to act fast. Taco has also been in contact with Hyatt before. As for expertise? Boss, aren't we in the finance and technology field?"

"Chen Ming told him what we were doing in Hong Kong."

"Real estate, ports, automobiles, catering, and retail."

"Hiss!" Wilson gasped. He only knew that his boss was rich, but he didn't know that his boss had so many businesses.

"Boss, there's another question, but I'm not sure if I should say it," Chen Ming said.

"Say it directly."

“The New York City government will definitely examine the developer’s qualifications, which our newly established company certainly doesn’t have.”

"That depends on you. With the real estate market so sluggish right now, I don't believe there aren't real estate development companies on the verge of bankruptcy. Take one back, and as for how many people to keep, that depends on their reputation. Of course, we don't want those with a very bad reputation."

"Okay, but that would increase the budget significantly."

"We'll recoup our investment; I'm confident we will."

Wilson and Chen Ming exchanged a glance, both seeing the shock and excitement in each other's eyes.

Chen Ming, who had recently come from Hong Kong, wanted to make a name for himself in North America, and so did Wilson, who had just joined the company.

“Understood, boss!” Wilson replied immediately, his lawyer-like meticulousness getting him into the zone quickly. “I’ll immediately begin registering the ‘Grand Hyatt Hotel Group’ and simultaneously initiate the screening and acquisition negotiations of qualified, near-bankrupt but reputable real estate development companies. Manager Chen, we need a detailed list of acquisition targets and a preliminary assessment, the sooner the better.”

“It’s already underway!” Chen Ming immediately replied. “The New York real estate market is in dire straits right now, and there are plenty of targets. I will prioritize companies with experience in developing large-scale commercial or hotel projects, complete qualifications, but poor management. As for reputation, I will conduct background checks through industry associations and past project partners to ensure there are no major blemishes.”

He Yuzhu nodded: "Very good. The acquisition should be quick, but without leaving any hidden dangers. After the acquisition is completed, retain the core technology and project management team, and properly handle the remaining redundant staff in accordance with the law. Wilson, you are responsible for the compliance of the entire acquisition process."

"Yes, boss."

“Furthermore,” He Yuzhu turned to Chen Ming, “the acquisition is only the first step. After taking over the Komodoro Hotel, we don’t want a simple renovation. I want it to become a new landmark in New York, a comprehensive landmark building that integrates a super five-star hotel, top-notch restaurants, high-end shopping, and entertainment. The height… at least five hundred meters.”

"Five hundred meters?" Chen Ming gasped.

This is something that challenges the skyline in the world.

“Yes, 500 meters.” He Yuzhu’s tone was calm, yet carried an undeniable authority. “The design must be grand and forward-thinking, representing the strength and ambition of ‘Grand Hyatt.’ We’ll hire the world’s top architectural design firm; money is not an issue. The core of the design is: a top-tier luxury experience, unparalleled city views, and… comprehensive facilities capable of accommodating large-scale business events and high-end social gatherings. It will be our most shining calling card in North America. I want to see the design once it’s ready.”

“I understand, boss!” Chen Ming’s eyes lit up with fighting spirit. “I will immediately contact top firms like I.M. Pei, SOM, and KPF to launch a concept design bidding process. At the same time, I will assemble a dedicated planning team to refine the functional layout and operating model. I will send the finalized plan to you as soon as possible.”

“Hmm.” He Yuzhu’s gaze swept over the two of them. “After the project starts, all external socializing, government relations coordination, and media communication will be handled by the professional management team. Wilson, as the chief legal counsel and company representative, you will be responsible for accompanying and supervising them to ensure that they act in accordance with our strategic intentions while avoiding any legal and political risks. Remember, we do things discreetly, but build the building with great fanfare.”

“Understood, boss. I will find an experienced professional manager with deep connections in both the political and business circles of New York to serve as the CEO of ‘Grand Hyatt’.” Wilson quickly understood He Yuzhu’s intention—the boss himself would remain behind the scenes.

“Very good.” He Yuzhu stood up. “Time is of the essence, and TACO will not sit idly by. I want to see the acquisition of ‘Junyue’ completed, the preliminary plan for the Komodoro project completed, and our stance at the negotiating table with the municipal government as soon as possible. That’s all, let’s get to work.”

Once the order was given, the entire team sprang into action like a sophisticated machine.

Wilson's movements were incredibly fast.

With the group's strong financial foundation and the authority granted by He Yuzhu, he quickly identified three qualified real estate companies.

Finally, they selected a company called Cornerstone Construction.

This company has a history of over thirty years and has participated in the construction of numerous large-scale commercial projects in New York. It possesses all the necessary qualifications and has an experienced technical team, particularly skilled in complex structures and high-rise buildings. However, in recent years, due to investment mistakes and mismanagement, it has fallen into a severe financial crisis, teetering on the brink of bankruptcy. Employee morale is low, although the technical capabilities of its core team are still considered acceptable within the industry.

Wilson personally led a team representing Grand Hyatt Hotels Corporation to launch swift acquisition negotiations with Cornerstone Construction. The negotiations went exceptionally smoothly, and a week later, Cornerstone Construction was officially merged into the newly established Grand Hyatt Hotels Corporation, becoming its wholly-owned subsidiary and changing its name to Grand Hyatt Construction.

At the same time, Chen Ming's team also made initial contact with several top architectural design firms.

Pei's firm declined due to scheduling conflicts, but SOM (Skidmore, Owings & Merrill) and KPF (Kohn Pedersen Fox Associates) both expressed strong interest.

Chen Ming conveyed He Yuzhu's core requirements to them: landmark height (500 meters+), top-tier luxury, multifunctional, and avant-garde design. Both firms promised to submit preliminary concept proposals as soon as possible.

Wilson, in his capacity as chief legal counsel for the Grand Hyatt Hotels Corporation, formally submitted a letter of intent to the New York City Department of Planning and Development.

The letter, worded with precision and confidence, expressed Grand Hyatt Group's "strong interest" in the Komodoro Hotel project and its firm determination to "fully acquire, completely renovate, and create a new New York landmark." The letter specifically emphasized that Grand Hyatt Group is backed by strong international capital, with all funding self-raised and no government loan guarantees required, and pledged to create far more jobs than the original hotel (initially estimated to create over 2000 direct jobs, with many more indirectly created).

Regarding the tax exemption policy, Grand Hyatt proposed a relatively "moderate" and more acceptable solution to the public: apply for a 20-year property tax exemption, instead of the 40-year full exemption proposed by TACO.

This letter of intent was like a bombshell, causing a huge uproar within the New York City government and the real estate industry.

Mayor's Office.

"Grand Hyatt Hotels Corporation? A full acquisition? Self-funded? 20-year tax exemption?" The mayor's assistant held the letter of intent, his face filled with disbelief. "What's the background of this 'Grand Hyatt'? Investigate! Find out immediately!"

“I checked, it’s a newly registered company. The parent company is registered in the Cayman Islands, with a very strong background and financial strength… supposedly very substantial. They just acquired 'Cornerstone Construction' outright,” the planning bureau chief reported, his tone tinged with excitement. “Mayor, this is fantastic news! TACO’s proposal is too controversial and almost impossible to pass in council. Now we have a stronger, more reasonable alternative (20 years of tax exemption vs. 40 years of full exemption), which can immediately solve the problems of employment and the city’s image! We can use 'Grand Hyatt' to put pressure on TACO, or… switch directly to 'Grand Hyatt'!”

The mayor pondered, tapping his fingers on the table.

The lobbying power of the TACO family should not be underestimated, but the Grand Hyatt proposal is indeed more politically correct and easier to explain to the public; he needs to weigh the options.

At the same time, the news spread like wildfire to the TACO family.

"What the FK?" Young TACO slammed the New York Times he was holding onto the expensive mahogany desk. The front page headline read, "Mysterious Capital 'Grand Hyatt' Makes a Strong Intervention, Who Will Win the Komodoro Hotel?"

His face was contorted with rage. "Grand Hyatt Hotels Corporation? What kind of trash came from? Daring to steal the meat from my TACO's mouth?!"

His senior assistant reported nervously, "Boss, we found out. This company has a very mysterious background, and its parent company is an offshore company. They just acquired 'Cornerstone Construction' very quickly. Their proposal to the city government is... a full acquisition and renovation, applying for a 20-year property tax exemption."

"A 20-year tax break?" Taco scoffed, a sinister glint in his eyes. "What are you pretending to be so high and mighty for! You're just trying to take advantage! You're just a little less greedy than me! Investigate! Find out who's behind them! Also, contact the mayor's office immediately; I want to speak with the mayor in person! Furthermore, arrange an appointment with the person in charge of that 'Grand Hyatt'! I want to see which fool dares to try and steal food from my Taco family in New York!"

A few days later, Richard Watson, a white man in his fifties and the new CEO of Grand Hyatt Hotels Corporation, accompanied by Wilson, waited for his young competitor in Grand Hyatt's new offices.

After the receptionist announced the news, the door was opened.

TACO walked in with a businesslike smile, followed by an assistant carrying a briefcase and with a serious expression.

“Mr. Watson, it’s a pleasure to meet you!” TACO’s voice was loud and clear as he extended his hand, his gaze sweeping over Wilson beside him.

“Mr. Taco, I’ve heard so much about you. Please have a seat!” Watson stood up, gave a firm but brief handshake, and displayed composure and poise, befitting a seasoned manager.

After saying that, he gestured to the sofa in the reception area.

"This is Mr. Wilson, our group's chief legal counsel."

“This is my chief advisor, Roy.”

"I heard you've got some new ideas for that old Komodoro? Interesting." After they sat down and exchanged a few pleasantries, TACO cut straight to the point.

“Yes, our boss is very interested in the hotel,” Watson replied.

“Mr. Watson, let me get straight to the point. I’ve put a lot of effort and resources into promoting that Komodoro site. You know, revitalizing it requires more than just money; it requires vision, courage, and… a deep understanding of the rules of the game in this city.” TACO paused, waiting for Watson’s reaction.

Watson maintained a professional smile and nodded slightly, indicating that he was listening.

TACO continued, “I’ve studied your proposal. A full acquisition? That’s impressive! But renovating a building of that size would require astronomical sums of money. A 20-year tax cut? That’s a good idea, but those old men in the city council are not easy to deal with. They care more about votes and public opinion. And public opinion…” He shrugged, “is often in the hands of those who know how to make their voices heard.”

He leaned back on the sofa, adopting a more relaxed posture, and continued, "Richard (he deliberately used his name to create a sense of closeness), you can relay my words to your boss: we don't actually need to be rivals. New York is big enough to accommodate more than one winner. My team has irreplaceable advantages in project operations, government communication, and media campaigning. And you, you have strong financial backing. Why not consider cooperation? We can form a joint venture; my experience combined with your capital can make Komodor a true legend! Profit sharing, risk sharing, a win-win situation. What do you think?"

Watson listened quietly, his smile unchanged, and slowly said, "Thank you for Mr. TACO's frankness and suggestions. The Grand Hyatt Group's assessment of the Komodoro project is based on its long-term strategic value. We believe that with our own financial strength, the professional development and construction team that will soon be integrated (he was referring to the acquired 'Cornerstone Construction'), and our determination to create a top-tier landmark, we can complete this project independently and bring it to its due height. Cooperation... is not currently within our plans."

TACO's smile froze for a second, a shadow of gloom flashing in the depths of his eyes, but the smile quickly returned to his face.

“Completed independently…” he repeated, a hint of barely perceptible sarcasm in his voice, “Very confident, Mr. Watson. But Manhattan real estate development, especially redevelopment projects of the scale of Cormodoro, is never a simple game of capital. It involves complex legal mazes, union relations, community opinions, and…” he deliberately lowered his voice, “a tacit understanding with the true power holders in this city. These intangible assets sometimes carry more weight than the numbers in a bank account.”

He leaned forward, his gaze becoming extremely imposing, the feigned friendliness completely vanishing: "My father, Mr. Fred Taco, has cultivated deep roots in the New York real estate industry for decades, building a vast network of connections from Queens to Brooklyn. From city councilors to state government officials, many have benefited from the Taco family's investments and construction. We know how to get projects approved smoothly, how to minimize dissent."

Watson glanced at Wilson and found Wilson sitting upright, as if watching a play.

So he gestured for Taco to continue.

TACO didn't mince words either, continuing, "And a newcomer, with an unstable foundation, even with ample funds, might encounter unexpected...resistance at some point. For example, what if the Historic Preservation Society suddenly raises objections to the renovation plan that are so stringent as to be unenforceable? Or what if the labor union organizes a massive protest, accusing you of disrespecting local workers? Or what if certain key planning permits are 'prudently' delayed in the approval process? Time is the biggest cost, Mr. Watson. Delays can ruin even the best project."

These words were now a threat, and Watson's smile vanished.

Wilson gave Watson a look, and Watson began, “Thank you, Mr. Taco, for sharing your experience. Grand Hyatt Group respects New York's rules and laws. We believe that a truly high-quality project that benefits the city, creates numerous jobs, and revitalizes a landmark will ultimately gain recognition and support through its own value and professional operation. We will also hire the most professional consulting team to properly handle all the potential issues you mentioned. As for the foundation,” he nodded slightly, “we are building it, and we are confident in building a solid foundation. Grand Hyatt is determined to win the Komodoro project and will proceed independently.”

TACO stared at Watson for a full five seconds, seemingly assessing whether the other was bluffing or had something to rely on.

Unfortunately, he was disappointed, because what he saw was unwavering faith.

"Determined to win? Very well, I admire ambitious opponents. Mr. Watson, it seems we can only compete on this stage. The spotlight in New York is bright; I hope the Grand Hyatt Group can withstand its heat. Goodbye!"

TACO stood up, did not shake hands again, but simply nodded slightly, and strode out of the office with his assistant Roy.

After the door closed, Wilson let out a long sigh of relief and looked at Watson: "His last sentence... was he threatening to use the media?"

Watson nodded and said, "Yes, he's good at that. But the boss said, 'Keep a low profile when doing things, but build a high profile when doing things.' The media is a double-edged sword; he can use it, and so can we. Now, it's time to report Mr. Taco's 'sincere intention to cooperate' and 'friendly reminder' to the boss."

"Okay, let's go see the boss together now."

(End of this chapter)