Young Peter Minuit closed on perhaps the most savvy real estate deal ever recorded. For the equivalent of $24, Peter purchased land whose value has, over time, appreciated by 17 billion percent! (yes… billion!) This real estate transaction begs the question: Who was Peter Minuit? What was his land deal, and how did it create an entity called Novi Belgica? Let us take a look….
Peter Minuit (1580-1638) was a Dutch speaker from Tournai, Wallonia. As 17th-century nations vied for domination of lucrative trade routes around the globe, Peter joined the Dutch West Indies Company (Geoctroojeede Westindische Compagnie). As a chartered trading company, it was designed to compete with foreign companies operating in Asia, Africa, Europe, and North America. Peter was the organizational merchant for the North American export of furs (primarily beaver pelts), silver, sugar, tobacco, salt, coffee, clothing dyes, and timber. In 1626 Peter became the chief director of the Dutch North American possession called The New Netherlands, or what cartographers called Novi Belgica.
Novi Belgica, located on the northeast coast of what would become the United States, embraced much of what is now New Jersey, eastern New York, Pennsylvania, and Delaware. The Dutch, realizing huge profits from beaver pelts (Beaver hats were the rage in Europe!), encouraged emigres to the area. Novi Belgica began to attract “handfuls of hale (read: healthy and strong) young Walloons”—Dutch speaking exiles from Wallonia. As director, Peter Minuit was able to establish some trading transactions with the local indigenous population—-the Canarse tribe. He successfully traded beer, brandy, and trinkets for ownership for the island at the mouth of the Hudson River, which today we call Manhattan— a borough in New York City. He named his new port New Amsterdam and declared Dutch the official lingua franca. For the next fifty years it would become a major hub for trade between North America, the Caribbean, and Europe.
The city with a burgeoning population of 1,500 would also serve as a military installation, which helped safeguard the Dutch settlers’ investments, possessions, and farms. In 1664 however, English frigates sailed into New Amsterdam harbor and demanded a Dutch surrender. This act effected the bloodless capture and shifted power to the English. The city was renamed New York. But Peter Minuit’s efforts forever imprinted Flemish names on many American cities and towns within Novi Belgica. Examples include Rotterdam and New York (named after the location where Dutch immigrants last touched European soil.) Renssalaer, N.Y. (named after Kiliaen Renssalaer, a diamond and pearl merchant from Amsterdam and one of the founders of the Dutch West Indies Company), Yonkers ( from the Dutch: Jonkeer (gentlemen) and heer ( lord), Fishkill (form the Dutch (vise (fish) and Kil (stream)….also, Guilderland, Ghent, Harlem, Bedford-Stuyvesant, and many more…
In 2023, New York City— once known as New Amsterdam— retained its crown as the world’s priciest real estate. (Note: London took second, followed by Hong Kong ,Geneva and Paris.). The city is renowned for its dynamic nightlife, arts, culture, architecture, museums, dining, and sports. The port of New York, blessed with its deep-water harbor and access to Europe, is among the world’s busiest. New York is home to the world’s largest stock exchange (think: Wall Street) and plays a leading role the global economy.
The city has been a major player on the world stage since its days as part of Novi Belgica. It is unlikely that Peter Minuit could imagine the future magnitude of his “real estate deal.” Experts will often claim the three most important things about real estate value are: “location, location, and location.” It is a timeless and invaluable rule. It is not clear if Peter Minuit, a 16th-century Walloon, understood or believed in this principal but his Novi Belgica transaction certainly makes the case!
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