Visionary or Villain?
SunPost Catches up with Thomas Kramer
Born in 1957 in Germany, Thomas Kramer grew up as the son of a Frankfurt stockbroker and early on demonstrated unusual acumen in the world of business and finance. By age 17, he had already made a million Deutschemarks by trading over his school’s pay phone and by his mid-20s, Kramer had developed into a powerhouse stock and commodities trader in New York City. In October of 1987, he famously predicted the market’s decline and by selling S&P futures short, Kramer raked in $100 million in a single day. The German press instantly dubbed him the “Wunderkind” of the global financial markets. His bold and colorful lifestyle made him interesting to European media even as a relatively young man.
Kramer’s shift towards real estate development was inspired by what he calls a “Eureka moment” as he flew over South Pointe with Eddie Trump, founder of William’s Island. Kramer instantly realized the rundown area’s enormous profit potential by noting important similarities between South Pointe and Manhattan’s own Battery Park Plaza. Kramer had watched Battery Park blossom from a landfill into a mini-metropolis from his trading office on the 102nd floor of the World Trade Center and he wanted to do the same with South Pointe. He envisioned transforming the underdeveloped property at South Pointe into a world-renowned destination for jet setters and the international elite just like San Trope, Portofino, and Monaco.
What followed was a piece of Miami Beach history. With the support of the Miami Beach City Commission, Kramer developed Portofino in South Pointe and intended to develop more. Only the legal restrictions created as a result of the “Save Miami Beach” movement and referendum put the brakes on additional Kramer developments in the immediate vicinity of Portofino. Controversy was further stirred when it was discovered that Kramer had made campaign donations to numerous politicians, including those who had approved his projects.
Still, Portofino is credited by many as the impetus for the renaissance of South Pointe and as one of the signature developments/issues in South Beach history.
For several years, Kramer was a regular presence in South Florida and Miami Beach in particular. He had numerous real and rumored business relationships around South Beach and was a steady presence in social and philanthropic circles. He became a lightning rod of controversy for alleged offensive statements and behavior, which was only exacerbated by the ensuing debate about Portofino.
Eventually, despite whatever role Portofino played in the South Pointe renaissance, it heralded in the twilight of Kramer’s major South Beach presence.
At present, Kramer is involved in a number of diverse multimedia projects and is also actively working on the development of his own reality television show. His luxurious 29,000 sq. ft. estate situated on Miami’s star-studded Star Island is available for long or short-term rentals and for video or photography productions (www.5-star-island.com). Kramer is also an active partner in two of Miami’s trendiest restaurants, Quattro and La Piaggia and he is currently teaming up with Market America’s founders J.R. and Loren Ridinger to expand MA’s consumer-base to Europe. Kramer also maintains his website (thomaskramer.com) and his blog (http://world-of.tk).
Visionary, villain, or a touch of both, there is no question that Thomas Kramer is one of the most legendary and relevant figures in the history of Miami Beach. SunPost caught up with Kramer to talk past, present and future.
MWS: We don’t read a lot about your childhood and youth. What was you childhood like, your family life, etc?
TK: I had a very happy and active childhood. I was born in Frankfurt when Germany was recovering from the debt and destruction of World War II. My father was one of the godfathers of the new German Federal Republic and also the youngest founding member of the German stock exchange. He was a legend in his time and later founded his own market maker company. During my childhood, my family was fortunate to travel together throughout Europe and my father filmed all of these vacations with his 8mm camera.
MWS: What initially brought you to the U.S.?
TK: During my time in Germany, I became fed up with the inefficiency of the German bureaucracy, stiff market regulations, anti-entrepreneurial sprit, high taxes and the German “envy mentality.” In contrast, America is an entrepreneurial haven, a land of endless opportunities, and a place where wealth and success are celebrated and not shunned.
MWS: What was the real impetus for your interest in business, finance and then real estate?
TK: Even as a child, I was very ambitious and had a natural business instinct. At age 13, I published my own monthly newspaper and soon after I began absorbing lessons about stock trading from my father. By age 17 I made my first million Deutsch Marks by trading stocks and options over the payphone at my boarding school. I became so excited by the possibilities of the stock market that I moved to New York where I became a powerhouse stock, currency, and commodity trader on Wall Street. I famously and publicly predicted the big market crash in October ’87 and raked in $100 million in a day by selling S&P futures short.
My shift towards real estate came after this when I was in the market for a luxury high-rise penthouse in New York. I had a disagreement with Donald Trump about the layouts of high-end condo buildings because no developer was willing to build the specifics of what I considered essential for modern luxury living (i.e. a large kitchen, spacious closets, big bathrooms and showers). Because of that, I decided to venture into luxury real estate development on my own and began to search for the perfect location.
MWS: What about the southern tip of Miami Beach appealed to you years ago?
TK: The southern tip of Miami Beach was actually chosen by the founding fathers as the original city center in 1915 because of its incredible strategic location. It is conveniently located next to America’s biggest harbor and 3rd largest airport and sits in close proximity to the Port of Miami and Downtown. It boasts water views on 3 sides, a fantastic unpolluted environment, and 340 days of sunshine a year.
MWS: Describe the moment you saw the southern tip of Miami Beach and realized its potential?
TK: It was an exhilarating, life-changing Eureka moment. On New Year’s ’91 I was flying in a helicopter over the southern tip of Miami Beach with Eddie Trump (creator of Williams’ Island) when I had a vision. I instantly realized the enormous development potential of this area because of its similarities with Manhattan’s Battery Park Plaza.
During the 80’s I watched this area blossom from a landfill into a metropolis from my office on the 102nd floor of the World Trade Center and in that moment I planned to develop Miami Beach in the same way.
MWS: Why do you think the development of Portofino became so controversial and did it surprise you that it did become such a point of contention?
TK: No, the controversy didn’t surprise me. For the first time in the history of the United States, we were planning to build an upscale condo tower in the middle of a dilapidated slum. There was controversy because there were some people that didn’t feel it would be successful and others that resented the project entirely.
MWS: To what do you most ascribe the resistance to your early South Beach development projects — did you feel it was personal?
TK: It was a combination of several factors. There was initial resentment from older residents because of my style and personality, but other residents would have resisted any successful development as it would have driven them out of their neighborhood by raising property taxes and rent prices. The older generation hated the vision, but the younger generation loved it.
MWS: Do you think that some of the reporting on how you conducted yourself around Miami Beach and on some of the comments attributed to you, was overblown or exaggerated?
TK: Absolutely. Most of the comments were overblown, exaggerated, or simply made up. My opposition had a specific agenda and they fought me tooth and nail.
MWS: Do you feel that there were things you could have done differently that might have garnered you less criticism in media and from some aspects of the Miami Beach community?
TK: Yes.
MWS: Who do you feel were some of your strongest supporters in the community?
TK: My strongest supporters were the youth, the new residents who moved into my new building, the visionaries, and the politicians with foresight.
MWS: Did the “Save Miami Beach” referendum and subsequent regulations have any effect on your plans for your properties in South Pointe?
TK: Of course. The referendum curbed my development efforts to their bare minimum. The referendums and regulations ruined the big picture and left only 10 percent of my original vision. Because of this, the overall potential for my projects was never realized. In the end, the opposition shot themselves in the foot.
MWS: After Portofino, what are some of the projects or initiative you have involved yourself in in South Florida?
TK: In addition to Portofino (the tallest building in Miami Beach), I am credited with the development of other luxury condos like the Apogee, the Yacht Club, the Murano, the Murano Grande, and the Icon to name a few. I also bought 16 of the 20 lots on neighboring Star Island and transformed it from a trash dump into an exclusive gated community with the multimillion-dollar homes of celebrities like Gloria Estefan, P. Diddy, Rosie O’Donnell, Phillip Frost, and Naomi Campbell’s billionaire boyfriend, Vladimir Doronin.
My next challenge is to incorporate and synergize the potentials of marketing, entertainment, and Internet gaming in order to transform 3D virtual malls into the shopping of the future.
I am also marketing an exclusive TK product line by utilizing my extensive social media network and TV exposure.
MWS: Do you still have RE holdings or investments in Miami Beach?
TK: Only my private home on Star Island. (www.5-star-island.com)
MWS: What do you think you have learned from your experiences in Miami Beach?
TK: That it’s very difficult to deal with a hostile population.
MWS: How do you view yourself and your role in the evolution of South Beach?
TK: As a revolutionary. I turned South Beach from a degenerated slum into an international world-class residential and tourist destination. Miami Beach didn’t just get a facelift– it was reborn.
MWS: How much time do you currently spend in Miami Beach, and what do you think of the many changed in the city since you arrived?
TK: At the moment, I’m spending a lot of time in Miami Beach because with the changes I helped bring about, it is now a place worth staying in permanently.
Before, Miami Beach was only a short-term vacation destination. Now it is home to some of the most exclusive condominium buildings ever built in the United States’ and is synonymous with luxury living and sophistication.
MWS: What would you most like longtime beach residents to know about Thomas Kramer?
TK: That I always deliver what I promise.
Category: COVER
