A Family That Plays Hardball

In the District, city tax officials in the 1980s mistakenly assessed one of Lerner's properties at $4.75 a square foot instead of $475. Lerner paid the lower bill. But when the city caught its mistake and filed a tax lien for the correct payment, Lerner sued, saying the lien amounted to slander and libel. In the end, Lerner and a partner agreed to a $675,000 tax payment, $160,000 less than the District sought, according to news reports at the time.

At Tysons, the Lerners battled two years ago with an office tenant over who was to pay for the tenant's parking, which was unclear in the lease. The sum involved was a fraction of the $6 million lease, and the tenant's broker, Thomas Birnbach, said it was the kind of dispute that could normally be resolved with personal negotiations. But the Lerners pressed until the tenant relented, having spent $40,000 in legal fees.

"Rather than work it out with the tenant, [the Lerners] stuck to their guns," said Birnbach, a principal of Cresa Partners. He declined to identify the tenant, which is still in the building. Fairfax officials said they have on several occasions felt duped by the Lerners and their lawyers. Lilla Richards of McLean, a county supervisor in the 1990s, is still upset about what she sees as the Lerners' success in invoking the fine print of zoning agreements to delay building a much-needed bridge over Route 123 in Tysons.

"What [Lerner] does is get the [lawyers] to write the document in a way that most gentlemen would understand in one way," she said. "But after the document is signed and everyone is happy and goes away, then they find out, 'Oh my God, there is a loophole in here we didn't see.' " The Lerners say they are simply abiding by the letter of agreements. "I guess we're just going to have to get used to the fine-print rap," Tanenbaum said. "A lot of times, you'll find that when people have different expectations, the argument of refuge is, 'They're insisting on details.' We're just going to have to be okay with that."

The Lerners note that the family has earned a stellar standing with banks and dozens of partners.

"We have partnerships where we shake hands, or on the telephone, [for] tens of millions of dollars, where we just agree, and all the paperwork and everything comes later," said Edward L. Cohen, 60, Lerner's other son-in-law and another company principal.

Albert "Sonny" Abramson, founder and partner of the Tower Cos., praises the Lerners' business style. He and the Lerners built Landover Mall, White Flint Mall and Washington Square, among other buildings.

"He's very frank and honest from the very beginning; he tells you where he stands and what kind of deal he'll make. Once he's made a commitment, you know exactly where you stand," Abramson wrote in response to questions. "On the other hand, he expects the other person to live up to his commitment."

Others say the Lerners' insistence on the letter of the contract is welcome because people know what to expect, and everyone is held to the same high standards. That explains why the company's buildings are well maintained and command a premium price, some brokers say.

"Everything they do is first class, and that comes at a price," said Michael Zacharia, a senior vice president at CB Richard Ellis, a commercial real estate services firm. "Everyone understands when you do a deal with Lerner, all the cards are on the table. They run it cleanly and efficiently, and they follow the lease documents to the letter."

Trendsetters at Tysons?

As the Washington region has expanded steadily over the past three decades, the Lerners have served as pioneers. One by one, the family's shopping centers and office complexes have tracked and advanced the outward growth. It was that history that D.C. officials saw as valuable experience the family could bring to the renewal in Southeast, the city's next development frontier.

But Lerner plays down his role as a visionary, citing Tysons as one example.