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
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.
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)
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.
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.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
