Desiato: Where does your passion for real estate come from?

O'Neill: We always heard about the great Irish builders, and we grew up with a love for the construction process and buildings in general, particularly buildings in old neighborhoods that time had passed by. Trying to find that jewel. We still get excited when we think of that.

Desiato: You and your brother started out together. Tell us about going out on your own.

O'Neill: In 1992 there was no money out there to borrow. We made the decision to part ways, and Brian chose to get out of the business all together. That was probably the toughest decision I ever made. We've talked about getting together again, but we have different goals and different ways to go about what we do. Brian is like a tech fund and I'm like a hedge fund. While we take risks we're a bit more conservative in what we do.

Desiato: What were some of the hurdles you faced, and what do you consider to be your defining deal?

O'Neill: Getting out of debt. In 1993, every person who had put money in real estate had lost it. Every bank was holding back. In hindsight, people were selling stuff for five cents on the dollar. The fundamentals were so out of whack, but the opportunities were so monumental that they haven't repeated themselves to this day. In terms of my defining deal, I honestly can't look back and say this deal was defining or that deal was the greatest. Every day you get up and go to work, and if you keep raising your expectations, you find a better opportunity.

Desiato: Tell us about the gaming deal. What's the likelihood that it will in fact happen?

O'Neill: First of all, you've all heard of Croce and Trump. Can you imagine trying to get a word in edgewise? In terms of the project, gaming is coming to Philadelphia no matter what we do. In the location we've chosen, the project will grab the western suburbs and all the revenues that would come in from the west. Also, it's an opportunity to leverage that and create tremendous economic benefits for a neighborhood that hasn't had economic opportunity for 50 years. The casino is a $300-million construction project that can bring in $300 million in revenues, and it comes with job training through such sources as the Salvation Army and Temple University. Whether or not it gets approved will be decided, but our focus is to spend time with the community to convince them that there's not a better opportunity, and it will be a travesty if the board doesn't approve it. It's impossible to predict where it will go. It's my job to show that this is one of the greatest things for our city.

Desiato: Your leadership extends far beyond your company. Where do you focus your charitable activities?

O'Neill: Ninety percent of our focus is on schools and education in the inner city. My wife and I are involved in seven or eight different schools and the list grows every day. One of our biggest focuses is not to gentrify a neighborhood but to take that neighborhood, put it back on its feet and see the locals participate in that process. It's one of the most rewarding things we do.

Desiato: How do you describe you management style?

O'Neill: Every day is a Super Bowl. Come in and be the best at what you do, apply the highest standards to it and do it for the highest purpose. If you are inwardly focused you'll peak out. If you're outwardly focused and you're supporting your team and the people you impact, it changes the whole culture to one of giving. It's a higher responsibility.

Desiato: What would you do differently?

O'Neill: When something is not right, make your decision more quickly. When I haven't made them quickly, it has cost us.

Desiato: Finally, what keeps you up at night?

O'Neill: My business rarely keeps me up. We run a successful company, and my kids grew up in a very safe place. What keeps me up at night is the communities we work in and the problems they face. That keeps me up all the time. Why can't we impact these problems in a larger way? We have the opportunity to change that.

Instant Insights /

Michael O'Neill of Preferred Investments

Related Stories

Recommended For You