Real eState
$400m worth of property Trump is banned from – realestate.com.au – realestate.com.au
Donald Trump is banned from $400m of real estate. Picture: Getty
Former US president Donald Trump will tell you he built the New York City skyline and in the process put his name on some of the city’s most iconic buildings.
However the ruling by a Manhattan judge means Trump could lose his grip on the property world he has been synonymous with since the 1970s.
Trump has been temporarily banned as CEO of his own company, putting around $US250m ($A392m) worth of property as a result of his civil fraud case.
According to the New York Post, In the early 1990s, the real estate market was in free fall and several of Trump’s business ventures — including the Trump Taj Mahal in Atlantic City and the Plaza Hotel in New York — had recently gone belly-up, which put the Queens native deeply in debt.
Trump Tower on Fifth Ave in Manhattan is one of the former President’s best known properties. Picture: Getty
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Licensing the Trump name became a way to boost his global profile, and bank account, without taking on the usual risks of a commercial real estate developer.
By attaching his name to a building project, Trump could collect a hefty payday while avoiding any liability.
The responsibility instead would fall to the project’s developer, who in turn received the benefit of being associated with a famous name.
Such licensing deals have resulted in an extensive portfolio of luxury hotels and golf courses around the world that bear Trump’s moniker — and pay him for the privilege to do so.
But by far the most of these deals were in the US, with 14 Trump-branded properties generating revenue from licensing or management deals, according to the Washington Post.
Sorry 45 but you can’t touch this. Picture: Getty
Licensing is a big moneymaker for the Trump Org, netting them some $59 million in revenue between 2015-2016 alone, the outlet wrote. Over the decades, the Trump name has been splashed on everything from wine and steaks to board games and golf courses. But his favourite prize has always been high-end real estate, particularly in Manhattan. Trump famously plastered his name on buildings all over Gotham, in many cases on buildings he didn’t actually own.
A Washington Post analysis of Trump’s properties conducted soon after he took office for his first term in the White House found that although his name adorned 17 properties in Manhattan at the time, he only actually owned five of them.
Donald Trump on the campaign trail. Picture: Getty
Following his ascent to the presidency, Trump’s name appearing on buildings in some cases became politically fraught.
In November 2016, days after defeating Hillary Clinton for the presidency, work crews removed the golden “TRUMP PLACE” lettering from a trio of luxury high-rises on the Upper West Side after a condo board vote.
The next year would see his name scrubbed from the Trump SoHo Hotel, which was rebranded as The Dominick.
By February 2019, Trump’s name had vanished from all six Trump Place condo buildings, according to the Washington Post.
But on Friday, Manhattan Supreme Court Justice Arthur Engoron may have delivered the 2024 GOP frontrunner’s real estate empire its worst news yet.
Trump has been barred from doing business in New York for three years and slapped with more than $355 million in fines following an 11-week trial over state Attorney General Leticia James’ fraud lawsuit against him, his two eldest sons, the Trump Org and others.
With the mogul’s future in New York uncertain, some of the iconic buildings around Manhattan that he either owns or has a financial stake in include:
Protesters outside Trump tower after the Republican’s 2016 General Election win. Picture: Getty
Trump Tower: 721 Fifth Ave
Standing tall at 721 Fifth Ave. in Midtown, Trump Tower is a 58-story skyscraper that has been a fixture in Manhattan since its completion in 1983.
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It serves as the central headquarters of the Trump Organization and boasts a mix of apartments, offices and stores. But perhaps the most famous feature of Trump Tower is former President Trump’s own penthouse, perched high above the city.
The Attorney General’s suit claims that the Trump Organization used deceptive practices to get the highest possible value for the tower. For instance, the organisation based value on the transaction for a building located nearby, which headlines supposedly detailed had set a world record.
That said, the former president and current candidate, along with his associates, claimed the tower’s value had risen by $170 million from the previous year.
The judge denied this argument and ruled that the building was overvalued between $114 to $207 million.
Real estate tycoon Donald Trump poised in Trump Tower atrium. (Photo by Ted Thai/The LIFE Picture Collection/Getty Images)
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Also vulnerable is that triplex penthouse. The suit alleges the longtime home was worth less than claimed. James and Engoron allege that Trump and his associates exaggerated the size of the unit — bringing it from roughly 11,000 square feet to 30,000. In Trump Organization financial statements, the home’s value jumped by 400 per cent, from $80 million in 2011 to $327 million in 2015.
Trump’s defence defended this by arguing that “the calculation of square footage is a subjective process that could lead to differing results or opinion based on the method employed to conduct calculation.”
Outside Manhattan Supreme Court on Monday, Trump himself took the opportunity to lash out at James and Engoron, calling the latter “unfair, unhinged, and vicious in his pursuit of me.”
Trump Park Avenue: 502 Park Ave
At 502 Fifth Ave., Trump Park Avenue was transformed into a residential building from a hotel in 2004 after Trump’s purchase in the early 2000s.
Trump bought the property for $115 million. Costas Kondylis & Partners, architects for many of Trump’s condo developments and numerous others throughout Manhattan, created 120 luxury homes, ranging in size from one to seven bedrooms. Reportedly, the renovator’s total cost was $100 million.
Donald Trump Jr. and his sister Ivanka Trump pose for a photo on the penthouse terrace of the Trump Park Avenue building in New York 11/04/06.
The building houses 12 rent-stabilised rental units, which the suit alleges were valued by the organisation as if they had rented for market prices. The Trump Organization offered a value for them of nearly $50 million, while the suit says the value cited by a third-party appraiser was much less — $750,000.
4-6 E. 57th St
Many may recognise this address as the former Niketown location.
In 2019, Trump and his companies that rent the buildings valued the property’s interest at $445 million, according to the New York Times. The lawsuit alleges that sum was inflated by mismatching income and expense periods. That inflation is at least $37 million. The lawsuit claims this is the result of the organisation of using higher forward-looking income figures combined with lower backward-facing expense figures.
40 Wall St
In the Financial District, this 71-story commercial skyscraper, completed in 1930, was designated as a city landmark in 1998.
Trump building – 40 Wall Street New York City.
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The Trump Organisation’s 2015 appraisal of the property it leased was $735.4 million — though the lender-ordered appraisal was $540 million, according to the suit. The valuation included a $1.4 million lease with the upscale food market Dean & DeLuca for the building’s ground level, even though it hadn’t been signed. (Ultimately, and separately, that market location never came to fruition.)
Meanwhile, financial statements also understated building expenses. The Times noted that the Trump Organization reported management fees and expenses of $100,000 each year for 2012, 2013 and 2014 — though fees were closer to $1 million annually.
1290 Ave. of the Americas
Trump owns a 30 per cent share in this Midtown building, per the suit, located on a prime stretch of the avenue next to Radio City Music Hall and Rockefeller Center, but the rules of the partnership limit Trump’s own ability to sell his stake.
Still, in valuing that stake, the organisation is accused of calculating 30 per cent of the tower’s value minus its debt. Trump is also accused of using a “cap rate,” a valuation measure in real estate to compare investments, to inflate the building’s worth.
Trump National Golf Club Hudson Valley, Hopewell Junction
In the lawsuit, details regarding this upstate golf course, near Poughkeepsie, have to do with inflating the cost of memberships to boost property value. In 2011 and 2012, there was a listed initiation fee of $10,000. In 2011, the organisation pegged a value at 93 per cent of 161 unsold memberships at a $15,000 minimum. The next year, the organisation valued 78 per cent of 254 unsold memberships between $15,000 and $30,000.
Seven Springs, Westchester County
A Trump Organization subsidiary bought a 212-acre spread in the northern suburbs in 1995 that ran across three towns. More than 10 years later, son Eric Trump had planned to construct residences on 24 luxury lots on the grounds. In 2014, a hired appraiser pegged the value of the lots at some $30 million. That same year, per the suit, the company had a $23 million valuation for each lot in just one of those three towns, Bedford. Financial statements reported the values if those 24 luxe homes had been constructed, whereas in reality there was a legal challenge from the Nature Conservancy seeking restrictions on what could rise there.
Trump owns several golf clubs including in Westchester and Hudson Valley. Picture: Getty
Trump National Golf Club Westchester, Briarcliff Manor
As for this golf course, the suit charges that the organisation inflated its value by including hopeful income it would earn from new members. A valuation in 2011 reportedly relied on an assumption that 67 new members would each pay $200,000 in entry fees. In reality, many didn’t pay a cent.
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Part of this article originally appeared in the New York Post and are republished here with permission.
Real eState
Former HGTV star from Los Gatos sentenced in $10M real estate fraud case – CBS San Francisco
LOS GATOS – A Los Gatos man who starred in a real estate reality show was sentenced to jail and ordered to pay back nearly $10 million to his victims after being convicted of real estate fraud, prosecutors said Tuesday.
According to Santa Clara County District Attorney Jeff Rosen’s office, 58-year-old Charles “Todd” Hill received a four-year sentence. Hill starred in the HGTV show “Flip It to Win It“, which featured teams buying dilapidated homes and fixing them, before selling them for a profit.
The show aired in 2014.
Prosecutors said Hill was convicted in Sep. 2023 after admitting to grand theft with aggravated white-collar enhancements for committing real estate and financial fraud against 11 victims. Hill was indicted in 2019 following an investigation by the DA’s office.
“Some see the huge amount of money in Silicon Valley real estate as a business opportunity,” Rosen said in a statement. “Others, unfortunately, see it as a criminal opportunity – and we will hold those people strictly accountable.”
According to the DA’s office, Hill engaged in “multiple fraud schemes”, with some scams dating back before the HGTV show.
Prosecutors said in one instance, he diverted construction money for his personal use. In another, Hill created a Ponzi scheme by taking money intended to buy homes from an investor and spending it on a lavish lifestyle instead. He hid the theft by creating false balance sheets and used fraudulent information to obtain loans, according to prosecutors.
In a third case, prosecutors said an investor who provided $250,000 to remodel a home toured the property, only finding it to be a “burnt down shell” with no work performed.
Hill had used the money on a rented apartment in San Francisco along with spending on hotels, vacations and luxury cars, prosecutors said.
In addition to jail time, Hill was ordered to pay back $9,402,678.43 in restitution and serve 10 years probation. Hill has been remanded into custody, the DA’s office announced.
Since Zdrill is well versed in all aspects of the real estate industry, you’ll have answers to questions before you even think to ask them – like, “How does mortgage loan insurance work?” or “How much will I need for closing costs?”
“Closing costs typically range from 1.5 to four per cent of the home’s purchase price and include things like legal and administrative fees, your home inspection, appraisal fees and more. So, you need to budget for this. Its my job to make sure you’re asking all of the right questions and I’m giving you the information you need to make informed decisions.”
As a licensed realtor with RE/MAX P.A. Realty, Zdrill has the option to show any property on the Multiple Listing Service (MLS) database. He prides himself on understanding the market and current trends including property prices and the community.
“Prince Albert continues to have a lot of things happening with the construction of the new hospital, swimming pool and rinks. When I got into real estate over a year ago, I believed Prince Albert was a community on the verge of a boom and we’re starting to see that come to fruition.”
Selling or buying a home involves a multitude of moving parts, from negotiations to closing procedures and Zdrill is committed to helping his clients navigate the complexities with confidence.
Contact Glenn Zdrill through the RE/MAX P.A. Realty office at 2370 – Second Ave. W or give him a call at 306-961-5767.
*Please note, this article is not intended to solicit any properties already listed for sale.
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**This content was created by paNOW’s commercial content division.
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The extraordinary measures Ontario’s new homes regulator is taking to deal with a Toronto builder with a history of sanctions highlight the challenge posed by unlicensed builders.
On March 19, the Home Construction Regulatory Authority (HCRA) froze the assets of Albion Building Consultant Inc. Court documents said that an investigation found evidence that the company took money for as many as 53 separate homes in Toronto it did not have the proper licences to build or sell.
The number of homes allegedly illegally built by Albion is several times larger than previously believed, which the HCRA said prompted it to invoke rarely used powers.
The freezing of assets was not punitive, but “to hold any purchaser funds in trust … to prohibit [Albion] from transferring any assets [and] to preserve the deposits for the benefit of homebuyers,” said Wendy Moir, the HCRA’s chief executive officer and registrar.
Ontario’s new home regulations are split between two delegated authorities, HCRA and Tarion. HCRA, which was launched in 2021, licenses builders and polices their conduct. Tarion approves the number of homes a builder can enroll in its home warranty program, an insurance pool that protects new home deposits and serves as a backstop for builder defect complaints.
If homes are built or sold without licences, they cannot be enrolled in the Tarion program, limiting the buyers’ recourse in the event of defaults by the builder.
“The HCRA is taking appropriate action to protect the public and send a clear message to the industry that those who act unlawfully or unethically will be held accountable,” said Ms. Moir.
The principals of Albion – Zamal Hossain and his wife Farida Haque – have already been convicted four times for regulatory offences related to 16 homes built without licences between 2016 and 2022. But in a search warrant application the HCRA filed on Feb. 20 with the Ontario Court of Justice, the agency outlines dozens of other new-build homes Albion is alleged to have sold or constructed. Those allegations have yet to be proven in court.
The warrant is only the second one the relatively new agency has served. It allowed investigators to comb through Albion’s office at 3028 Danforth Ave. in Toronto for any records of contracts and agreements with buyers about the homes, contracts with trades and subtrades, contact information for the new home purchasers and any correspondence between Albion and purchasers about the new homes.
“We got a lot of information from them – a van full of documents,” said Ms. Moir. “We have hundreds of documents to go through,” she said. “This is one of our largest investigations.”
Albion’s business has been to tear down a single detached home, split the lot and then construct two new homes on the old site. The HCRA warrant suggests the majority of the 53 suspected unlicensed homes are lot-splits located mainly in Scarborough. It’s unclear as yet how many homes the company actually completed.
In the past, Tarion extended a licence to build homes to Mr. Hossain and Albion, but limited the number of new homes he was allowed to enroll into its insurance program.
The evidence HCRA submitted for the search warrant suggests that the actual number of unlicensed homes built by Albion was several times higher than Mr. Hossain admitted.
Mr. Hossain didn’t respond to requests for comment for this story, but in 2023 he offered this comment to The Globe on his previous convictions: “Yes I broke the law. I did the house without the Tarion [new home warranty]. … I didn’t murder anybody.”
According to Ms. Moir, there’s no clear tally of how many unlicensed builders there are in the province. She notes that it is not illegal to build your own home without a licence. But if you hire a contractor to do it, they must be licensed.
“We’ve seen an 80-per-cent increase in illegal building complaints since last year,” she said. “I don’t think it’s more illegal building, we think it’s more awareness.”
Neil Rodgers, Interim CEO of the Ontario Home Builders Association, said the Albion case puts a spotlight on the need for regulatory fixes to tackle illegal vending where an unlicensed builder takes deposits to build homes they aren’t entitled to sell or build.
“There has to be a pro-active regulatory regime,” said Mr. Rodgers. “There needs to be a system put in place that allows for what I’m going to call early warning tracking, whereby purchasers or their agents or their solicitors could register their agreements of purchase and sale with HCRA or Tarion. If there’s a pattern that’s emerging it gives the regulator an opportunity to intervene much faster.”
Mr. Rodgers likens this requirement on buyers to share details of their agreement of purchase and sale’s with HCRA or another agency as similar to mailing a warranty card for an electronic appliance, and says he’s calling on the province for consultations on changes to the requirements.
Karen Somerville of the consumer lobby group Canadians for Properly Built Homes (CPBH) doesn’t agree the burden should be on consumers to identify unlicensed builders, and points to a different screening where there’s already been pilot programs in the past: construction permitting.
“CPBH proposes that the municipality has the responsibility to notify HCRA given the information available in the building permit application,” Ms. Somerville said. “This would result in government organizations working together using information they already have to identify unlicensed builders.”
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