David Invest

Billionaires’ Playground: How Fifth Avenue Became America’s Wealthiest Street

• David (Viacheslav) Davidenko

Share episode

Can a single street encapsulate the ambitions and transformations of an entire city? Take a captivating journey with us down New York City's Fifth Avenue, a path that has evolved from humble beginnings into a global icon of luxury and ambition. Discover the visionaries like Henry J. Brevoort who set the stage for an elite migration, and explore the Gilded Age opulence of the Vanderbilts, Astors, and Carnegies. We delve into how Fifth Avenue's real estate became a chessboard for social maneuvering, with figures like Alva Vanderbilt strategically ascending society's ranks.

From the grandeur of brownstone mansions to the allure of modern penthouses, we examine how Fifth Avenue reflects shifting definitions of luxury and exclusivity. Uncover how the street transformed into a world-renowned shopping haven, yet remains deeply rooted in its prestigious past. As we close, we pose a thought-provoking question about its future: Will Fifth Avenue continue to redefine luxury, or remain a testament to its illustrious history? Listen in and share your predictions as the story of this iconic avenue continues to unfold.

📰 Read more about this topic in our latest article: https://sunrisecapitalgroup.com/billionaires-playground-how-fifth-avenue-became-americas-wealthiest-street/

🔗 Check out our website for more information and valuable resources: https://linkin.bio/davidinvest

📸 Follow us on Instagram for updates and behind-the-scenes content: https://www.instagram.com/davidinvestai/

🎥 Subscribe to my YouTube channel for more investment content: https://www.youtube.com/@DavidInvestAI

🔗 Network with me on LinkedIn for professional connections and advice: https://www.linkedin.com/in/vdavidenko/

📧 Subscribe to our newsletter for exclusive investment tips and insights: https://sunrisecapitalgroup.com/subscribe/

📚 Check out my course on Udemy - https://www.udemy.com/course/passive-real-estate-investing/

Disclaimer: The content provided on this channel is intended for educational and informational purposes only and does not constitute investment, financial, or tax advice. We strongly recommend that you consult with qualified professionals before making any financial decisions. Past performance of investments is not indicative of future results. The information presented here is not a solicitation or offer to buy or sell any securities or investments. Our firm m...

Speaker 1:

Hey, everyone ready for a deep dive into a New York City legend?

Speaker 2:

Ooh, I'm excited.

Speaker 1:

Today we're walking down Fifth Avenue.

Speaker 2:

Famous Fifth Avenue.

Speaker 1:

Yeah, but we're not just taking a stroll.

Speaker 2:

No.

Speaker 1:

We're time traveling through its history.

Speaker 2:

I like the sound of that.

Speaker 1:

We found this super insightful article from Sunrise Capital Group.

Speaker 2:

They know a thing or two about real estate. Right, they do and they have this fascinating take on how Fifth Avenue went from a humble dirt road A dirt road, I know crazy right to the street of dreams, wow.

Speaker 1:

So from dirt to diamonds, literally. So buckle up, because this deep dive is about way more than just buildings.

Speaker 2:

OK, I'm intrigued.

Speaker 1:

It's about ambition, society and how luxury changes over time.

Speaker 2:

Well, fifth Avenue is a perfect example of that.

Speaker 1:

For sure.

Speaker 2:

What's really captivating about Fifth Avenue is how it mirrors New York City's evolution.

Speaker 1:

It's like a microcosm of the city.

Speaker 2:

Exactly, it started as Middle Road, just a simple dirt path.

Speaker 1:

Hard to imagine, now right.

Speaker 2:

And, believe it or not, each plot was divided into five-acre parcels.

Speaker 1:

Five acres, that's huge.

Speaker 2:

Huge right. It was all to fund the city's growth.

Speaker 1:

Wow, that's a far cry from the millionaire's mile we know today.

Speaker 2:

Yeah, talk about a transformation.

Speaker 1:

It's wild to imagine those five-acre plots now with skyscrapers and all the fancy stores.

Speaker 2:

Oh, yeah, for sure. But even back then there were hints of grandeur. Oh, yeah, the 1811 Commission that officially named it Fifth Avenue.

Speaker 1:

They must have big plans.

Speaker 2:

Oh, they definitely Did that name change signal to shift.

Speaker 1:

So they were thinking ahead.

Speaker 2:

See, most of New York was crammed downtown though. It was all happening downtown, but this real estate trailblazer named Henry J Brevoort.

Speaker 1:

Okay, I've heard that name.

Speaker 2:

He decided to do something radical.

Speaker 1:

What did he do In?

Speaker 2:

1834, he built this grand Greek revival mansion on his family's old farmland uptown.

Speaker 1:

Uptown like way uptown.

Speaker 2:

Back then it was basically the countryside.

Speaker 1:

Wow, that was a bold move.

Speaker 2:

Let's talk about a visionary.

Speaker 1:

So Brevoort was the one who kickstarted the whole northward migration of New York's elite.

Speaker 2:

I'd say he was a catalyst. Absolutely, and soon after those federal-style row houses started giving way to those iconic brownstones.

Speaker 1:

In the 1850s right.

Speaker 2:

Exactly it's a visual reminder of how the neighborhood was becoming wealthier and tastes were changing. Yeah, the brownstones definitely have a different vibe, oh yeah, much more upscale, and that's when things got really interesting, especially during the Gilded Age.

Speaker 1:

Oh, the Gilded Age.

Speaker 2:

Fifth Avenue became almost synonymous with those extravagant mansions.

Speaker 1:

And those legendary families like the Vanderbilts, astors and Carnegies.

Speaker 2:

Oh yeah, they were the who's who of New York society.

Speaker 1:

So their homes weren't just homes, right? They were statements.

Speaker 2:

Precisely think. European castles, palatial estates designed to showcase their fortunes and social standing.

Speaker 1:

It was like a competition to see who could build the most extravagant mansion.

Speaker 2:

It wasn't just about living comfortably. It was about competing for a place in society's upper echelon.

Speaker 1:

Like a real-life Game of Thrones.

Speaker 2:

Right, and this is where the story gets juicy. William K Vanderbilt's wife Alva used their chateau-like mansion on 52nd Street to climb the social ladder.

Speaker 1:

Oh, this is the story about Mrs Astorite.

Speaker 2:

You got it.

Speaker 1:

Remind me who was she again.

Speaker 2:

Mrs Astor was the social queen of New York.

Speaker 1:

Like the ultimate influencer.

Speaker 2:

Exactly Her approval meant you had arrived.

Speaker 1:

Everyone wanted to be in her good graces.

Speaker 2:

Oh yeah, and Alva knew this, so she did something pretty clever.

Speaker 1:

What did she do?

Speaker 2:

She excluded Mrs Astor from a grand ball she hosted. Oh that's cold. It was a calculated move. It forced Mrs Astor to extend an invitation to Alva.

Speaker 1:

So she wouldn't suffer social ruin.

Speaker 2:

Exactly. It's a perfect illustration of how real estate became a weapon in the battle for social dominance.

Speaker 1:

Wow. So Alva Vanderbilt used her mansion as a power move.

Speaker 2:

You could say that it was some strategic real estate planning.

Speaker 1:

For sure.

Speaker 2:

But beyond the social maneuvering, these mansions were just colossal. Oh, there were massive multiple art galleries, underground railways, just to deliver coal rooms dedicated solely to gowns.

Speaker 1:

It's almost unimaginable today.

Speaker 2:

Right, they took opulence to a whole new level.

Speaker 1:

It's like something out of a movie.

Speaker 2:

It really reflects the mindset of the Gilded Age Bigger, bolder and more extravagant was always better.

Speaker 1:

Speaking of extravagance, we can't forget Marjorie Merriweather post the post-serial heiress.

Speaker 2:

Oh yes.

Speaker 1:

Her five-story 54-room mansion on 92nd.

Speaker 2:

Street. It was like something out of a fairy tale, right Totally Louis VI furniture, tapestries from Beauvais, enough Severus porcelain to rival a museum.

Speaker 1:

It's mind-blowing to think about that level of wealth on display.

Speaker 2:

It really is, but even fairy tales have their ending.

Speaker 1:

Didn't the allure of those massive mansions start to fade eventually?

Speaker 2:

You're right. By the 1920s, cracks began to show in this opulent facade. What happened? Well wait. Soaring property taxes, the practicality of apartment living and the changing social scene after World War I. Times were changing Exactly. Even Marjorie Merriweather Post felt the shift to her mansion was eventually demolished. Oh no, but she struck a fascinating deal.

Speaker 1:

Okay, tell me.

Speaker 2:

A triplex penthouse in the new building erected in its place.

Speaker 1:

Wait, a penthouse With 17 bathrooms and a private entrance.

Speaker 2:

Yep, that's right.

Speaker 1:

This sounds like the birth of a new era of luxury on Fifth Avenue.

Speaker 2:

You got it. This marked a turning point.

Speaker 1:

So the era of sprawling mansions might have faded, but the desire for exclusivity and luxury simply found a new expression.

Speaker 2:

Exactly the penthouse.

Speaker 1:

This signaled that Fifth Avenue was changing, but its reputation as the ultimate address remained intact.

Speaker 2:

Exactly Fifth Avenue was adapting but not losing its prestige.

Speaker 1:

So Fifth Avenue's story is one of constant reinvention.

Speaker 2:

That's a great way to put it from dirt road to mansions and then from mansions to penthouses.

Speaker 1:

I'm hooked. What happened to those mansions that didn't become swanky apartments?

Speaker 2:

Well, many of them were transformed into museums.

Speaker 1:

Museums.

Speaker 2:

Yeah, offering us a glimpse into that bygone era.

Speaker 1:

So they were repurposed.

Speaker 2:

Exactly. For example, the Andrew Carnegie Mansion now houses the Cooper Hewitt Smithsonian Design Museum.

Speaker 1:

That's amazing. It's like preserving history while adding a new layer to Fifth Avenue's cultural landscape.

Speaker 2:

Exactly. It's a perfect blend of old and new.

Speaker 1:

And a great transition. Let's take a closer look at some of these architectural transformations and how they've helped shape Fifth Avenue's identity today.

Speaker 2:

Let's do it. It's really amazing how those grand mansions went from symbols of private wealth to public spaces for art, education and cultural exchange.

Speaker 1:

It really shows how Fifth Avenue constantly reinvents itself.

Speaker 2:

Right.

Speaker 1:

But OK, before we get too far ahead, yeah, let's rewind a bit. Ok, what fueled that architectural frenzy during the Gilded Age? Why were those families so obsessed with building these over-the-top mansions?

Speaker 2:

Well picture this. America's booming industry is exploding and suddenly there's this new class of super wealthy industrialists and financiers.

Speaker 1:

The robber barons.

Speaker 2:

Yeah, and Fifth Avenue became their stage to showcase their fortunes, their tastes, their social ambitions.

Speaker 1:

So it was a bit like a real-life game of Monopoly, with Fifth Avenue being the most coveted property.

Speaker 2:

Exactly Owning a mansion on Fifth Avenue meant you'd made it. You were part of the elite.

Speaker 1:

Like a badge of honor.

Speaker 2:

Totally, and they weren't shy about borrowing ideas from European aristocracy.

Speaker 1:

Oh yeah, those French chateaus and Italian Renaissance palaces.

Speaker 2:

Exactly. It wasn't just about aesthetics. It was about aligning themselves with a legacy of power and prestige.

Speaker 1:

Interesting, though even back then not everyone was impressed by this architectural display.

Speaker 2:

Really.

Speaker 1:

Yeah, the article mentions Edith Wharton, the novelist.

Speaker 2:

Yeah, I know her work.

Speaker 1:

She called the proliferation of brownstones a chocolate-colored coating over the city's ugliest buildings.

Speaker 2:

Wow, she didn't hold back.

Speaker 1:

She was known for her sharp wit and social commentary, so it's fascinating to get her take on Fifth Avenue's evolution.

Speaker 2:

Even amidst the grandeur, there were critics.

Speaker 1:

Makes sense.

Speaker 2:

Wharton might have found the brownstones repetitive, but they actually represent a crucial shift.

Speaker 1:

How so.

Speaker 2:

Remember these homes were a step up for the growing upper middle class.

Speaker 1:

A symbol of their own aspirations.

Speaker 2:

Exactly. It's like a ripple effect of the wealth and ambition that was shaping Fifth Avenue.

Speaker 1:

And today those brownstones are considered classic New York.

Speaker 2:

I know right.

Speaker 1:

It goes to show how perceptions of style and status can change so drastically over time.

Speaker 2:

That's so true.

Speaker 1:

But what about the Vanderbilts?

Speaker 2:

What about them?

Speaker 1:

It sounds like they took this competition to a whole new level with Vanderbilt Alley.

Speaker 2:

Oh yeah, Vanderbilt Alley, that stretch of Fifth Avenue where several Vanderbilt family members built their mansions.

Speaker 1:

It was like their own private empire.

Speaker 2:

Right. It became the epicenter of Gilded Age one-upmanship. Remember Alva Vanderbilt and her social power play against Mrs Astor.

Speaker 1:

Oh yeah, that all went down in Vanderbilt, alley.

Speaker 2:

Exactly, it was like an episode of a historical reality show.

Speaker 1:

Seriously, these families were using architecture as a tool to climb the social ladder.

Speaker 2:

They knew the address on Fifth Avenue was more than just a location. It was a symbol of their power and influence.

Speaker 1:

It was all about status.

Speaker 2:

It was a very calculated display of wealth and social ambition.

Speaker 1:

And some went above and beyond.

Speaker 2:

Oh for sure, Take William A Clark, the copper magnate he built this outrageous mansion on 77th Street.

Speaker 1:

What was?

Speaker 2:

so special about it. It took over a decade to complete four art galleries, a Turkish bath and get this an underground railway for coal delivery.

Speaker 1:

An underground railway for coal. That's next level.

Speaker 2:

Right. It definitely highlights the go big or go home attitude of the Gilded Age.

Speaker 1:

But here's the irony by the time Clark's mansion was finished, the era of these colossal estates was already on the decline.

Speaker 2:

Yeah, it's like a peak moment, almost a turning point.

Speaker 1:

So what triggered the shift from those extravagant mansions to the more practical yet still luxurious apartment living?

Speaker 2:

Well, as we enter the 20th century, the world is changing, and so are people's priorities.

Speaker 1:

Things were becoming more modern.

Speaker 2:

Exactly those enormous mansions, as impressive as they were, were becoming a burden to maintain.

Speaker 1:

Yeah, I can imagine.

Speaker 2:

Sky-high property taxes, the sheer cost of staffing and the shift towards a more modern lifestyle all played a part.

Speaker 1:

It sounds like even the super rich were realizing that maybe those 50-room palaces weren't all they were cracked up to be.

Speaker 2:

Right, and that's where the appeal of apartment living comes. Apartments offered modern conveniences, greater privacy and, let's face it, a more manageable lifestyle.

Speaker 1:

Yeah, it makes sense.

Speaker 2:

It was a natural progression for a society that was embracing new ideas and new ways of living.

Speaker 1:

And, like we talked about earlier, marjorie Merriweather Post's decision to trade her 54-room mansion for that amazing triplex penthouse was a perfect symbol of this shift.

Speaker 2:

Absolutely. She wasn't alone. Many of those families who once resided in those grain mansions opted for luxury apartments and penthouses.

Speaker 1:

So the trend caught on.

Speaker 2:

Yeah, and this marked a new chapter for Fifth Avenue, where the definition of luxury evolved. It wasn't about how many rooms you had, but about the exclusivity, the amenities and the unparalleled views from those penthouses high above the city.

Speaker 1:

So Fifth Avenue adapted, but it never lost its prestige. It's fascinating how it managed to retain its status as the ultimate address even as the world around it changed dramatically.

Speaker 2:

That's the beauty of Fifth Avenue it's constantly evolving, reflecting the aspirations and desires of each generation.

Speaker 1:

Always staying ahead of the curve.

Speaker 2:

Exactly. And as we move into the 20th and 21st centuries, a new element comes into play high-end retail.

Speaker 1:

Ah yes, Fifth Avenue becomes synonymous with luxury shopping retail.

Speaker 2:

Ah yes, Fifth Avenue becomes synonymous with luxury shopping, From those iconic window displays to the flagship stores of global brands. It's like a shopping paradise for those who can afford it.

Speaker 1:

So it's no longer just about where you live. It's about what you can buy and where you can be seen. Fifth Avenue becomes a global destination for luxury shopping, attracting tourists and high-end shoppers from all over the world.

Speaker 2:

Exactly it becomes a stage for conspicuous consumption.

Speaker 1:

So those billion-dollar penthouses we mentioned earlier are probably neighbors with stores like Tiffany Co, saks Fifth Avenue and all those designer boutiques.

Speaker 2:

Oh yeah, they're all right there together.

Speaker 1:

It's like the modern-day version of Keeping Up with the Joneses, except now it's about who has the latest handbag or the most expensive shoes.

Speaker 2:

You've hit the nail on the head. The stage has changed, the players have changed, but the underlying themes of ambition, status and the ever evolving definition of luxury remain constant.

Speaker 1:

This has been an incredible journey so far, and I'm starting to understand why Fifth Avenue holds such a powerful place in our collective imagination.

Speaker 2:

It's a truly unique street.

Speaker 1:

But before we get too caught up in the glitz and glamour of modern-day Fifth Avenue, let's circle back to those repurposed mansions. They represent a tangible link to the past right.

Speaker 2:

Absolutely. They offer a glimpse into a bygone era and their presence adds a layer of depth and complexity to the modern Fifth Avenue experience.

Speaker 1:

It's like a bridge between the past and the present.

Speaker 2:

Exactly. Let's explore some of these architectural gems and discover how they continue to shape the character of this iconic street.

Speaker 1:

It's pretty amazing to think that those mansions you know once the exclusive domain of the ultra wealthy, are now open for anyone to experience. I know it's incredible. It's like getting a behind the scenes look at a bygone era, Totally so where should we start our tour of these architectural time capsules?

Speaker 2:

We already talked about the Andrew Carnegie Mansion, now the Cooper Hewitt Smithsonian Design Museum.

Speaker 1:

Right.

Speaker 2:

It's a fitting transformation, considering Carnegie's legacy and the design significance of these mansions.

Speaker 1:

Yeah, for sure considering.

Speaker 2:

Carnegie's legacy and the design significance of these mansions. Yeah for sure. Imagine strolling through those grand rooms, surrounded by history and exquisite craftsmanship.

Speaker 1:

I can practically picture those ornate ceilings and sweeping staircases.

Speaker 2:

Oh, absolutely.

Speaker 1:

It must be incredible to walk in the footsteps of those Gilded Age titans.

Speaker 2:

It really is.

Speaker 1:

Are there any other mansions that have been repurposed in such a dramatic way?

Speaker 2:

Oh, tons of us, the Otto H Kahn House this stunning French Renaissance revival mansion is now the convent of the Sacred Heart, a prestigious girls' school.

Speaker 1:

Wow, can you imagine attending classes in a former Vanderbilt mansion?

Speaker 2:

Talk about an inspiring learning environment.

Speaker 1:

Seriously, that's every history buff's dream.

Speaker 2:

Right.

Speaker 1:

It's like those walls are whispering stories of grand balls and lavish parties from a bygone era.

Speaker 2:

Oh, I bet those students get a unique perspective on history just by being in that building.

Speaker 1:

For sure.

Speaker 2:

And then there's the Payne, whitney Mansion.

Speaker 1:

Okay, another one.

Speaker 2:

It's another architectural gem that's been given a new lease on life.

Speaker 1:

So what is it now?

Speaker 2:

It now houses the cultural services of the French embassy, serving as a venue for diplomacy and cultural exchange.

Speaker 1:

Wow, that's a cool use of the space.

Speaker 2:

Right. It's a testament to how these buildings can transcend their original purpose and become symbols of international cooperation and understanding.

Speaker 1:

It's incredible how these mansions have woven themselves into the fabric of Fifth Avenue. They really have Adapting to new roles while still carrying the echoes of their extravagant past.

Speaker 2:

I love that.

Speaker 1:

They're like living, breathing reminders that history isn't something static.

Speaker 2:

No.

Speaker 1:

It's constantly evolving and shaping the world around us.

Speaker 2:

Couldn't have said it better myself.

Speaker 1:

Right.

Speaker 2:

They embody the dynamic spirit of Fifth Avenue, a street that seamlessly blends its historical grandeur with its modern day identity as a global hub for commerce and culture.

Speaker 1:

Totally. And speaking of modern day, we can't forget about the shopping.

Speaker 2:

Oh yeah.

Speaker 1:

Fifth Avenue is still a retail powerhouse, particularly when it comes to luxury brands. For sure. It's impossible to talk about Fifth Avenue without mentioning those iconic names.

Speaker 2:

Yeah, no right.

Speaker 1:

Like Tiffany Co Saks Fifth Avenue and Bergdorf Goodman, their flagship stores are practically landmarks.

Speaker 2:

Oh, they are.

Speaker 1:

It's like the ultimate shopping destination for those who appreciate the finer things in life.

Speaker 2:

You got it. Those glittering storefronts and extravagant window displays are practically synonymous with Fifth Avenue.

Speaker 1:

I know it's a shopper's paradise, a testament to the allure of luxury and the enduring power of iconic brands.

Speaker 2:

Absolutely.

Speaker 1:

So in a way, Fifth Avenue has come full circle.

Speaker 2:

How so.

Speaker 1:

It started as a street where the elite showcased their wealth through their homes, and now it's a place where luxury is on display for everyone.

Speaker 2:

Ah, I see what you're saying.

Speaker 1:

Whether you're window shopping or dropping thousands on a designer handbag.

Speaker 2:

Yeah, that's a great point. The players might have changed, the expressions of wealth might have evolved, but the underlying theme of ambition, aspiration and the pursuit of luxury remains a constant thread throughout Fifth Avenue's history.

Speaker 1:

This deep dive into Fifth Avenue has been a fascinating journey. We've uncovered stories of ambition, social climbing, architectural extravagance and the ever-changing face of luxury.

Speaker 2:

It's been quite a ride.

Speaker 1:

But, most importantly, we've seen how a simple dirt road transformed into a global icon, a street that embodies the dynamic spirit of New York City itself.

Speaker 2:

Perfectly said.

Speaker 1:

So, as we wrap up our exploration, we want to leave you with a question to ponder. Okay, what do you think the future holds for Fifth Avenue? Will it continue to adapt and redefine luxury, or will it cling to its historical roots?

Speaker 2:

Good question.

Speaker 1:

We'd love to hear your thoughts, share your predictions, insights or anything that sparked your curiosity during our deep dive.

Speaker 2:

Definitely, let us know.

Speaker 1:

Because, ultimately, the story of Fifth Avenue is still being written. It's true, and who knows what fascinating chapters lie ahead. Thanks for joining us on this incredible journey.

People on this episode

Head Shot

David (Viacheslav) Davidenko

Host