In focusing on operations, Simon scored impressive gains in productivity. But Simon knew that for the company to regain its momentum, it needed new sources of capital. The company's focus has broadened and moved upscale. When the company went public, it had only 12 malls in the top 20 markets in the country. Fla. It is in his acquisitions that Simon's Wall Street training is most evident.
Real estate is an industry used to cozy inside deals between friends and partners.
The David Simon who mixes it up under the backboards, however, isn't shy about muscling around in this arena. CPI, the largest privately owned retail mall company in the country, didn't take Simon Group all that seriously, according to Simon Group's Sterrett. They didn't think we were a good fit with their assets. And they had two other serious bidders. Right up until the close of business on the last day of bidding, Simon Group was an also-ran.