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$400m worth of property Trump is banned from – realestate.com.au – realestate.com.au

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Former President And GOP Presidential Candidate Donald Trump Speaks To The Media In West Palm Beach, Florida

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.

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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.

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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.

Former President And GOP Presidential Candidate Donald Trump Speaks To The Media In West Palm Beach, Florida

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.

Former President Trump Holds A Campaign Rally In Michigan

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:

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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.

Donald J. Trump

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.

APRIL 11, 2006 : 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.Trum/fam

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.

New York City

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.

LIV Golf Invitational - Bedminster - Day One

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.

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The Realtors' Big Defeat – The New York Times

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A settlement in the real estate industry is a case study of a central flaw in free-market economic theory.

Free-market economic theory suggests that the American real estate market should not have been able to exist as it has for decades.

Americans have long paid unusually high commissions to real estate agents. The typical commission in the U.S. has been almost 6 percent, compared with 4.5 percent in Germany, 2.5 percent in Australia and 1.3 percent in Britain. As a recent headline in The Wall Street Journal put it, “Almost no one pays a 6 percent real-estate commission — except Americans.”

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If housing operated as an efficient economic market should, competition would have solved this problem. Some real estate brokers, recognizing the chance to win business by charging lower commissions, would have done so. Other brokers would have had to reduce their own commissions or lose customers. Eventually, commissions would have settled in a reasonable place, high enough for agents to make a profit but in line with the rest of the world.

That didn’t happen. Instead, an average home sale in the U.S. has cost between $5,000 and $15,000 more than it would have without the inflated commissions. This money has been akin to a tax, collected by real estate agents instead of the government.

The situation finally seems to be ending, though. On Friday, the National Association of Realtors, the industry group that has enforced the rules that led to the 6 percent commission, agreed to change its behavior as part of an agreement to settle several lawsuits.

The settlement is important in its own right. Americans now spend about $100 billion a year on commissions. That number will probably decline by between $20 billion and $50 billion, Steve Brobeck, the former head of the Consumer Federation of America, told my colleague Debra Kamin.

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Allied REIT buys out Westbank on two building projects, the Home of the Week and more top real estate stories – The Globe and Mail

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Home of the Week, 80 John St., Upper Penthouse 1, TorontoJohn Lee/John Lee/Soare Productions

Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

Take The Globe’s business and investing news quiz

Canadians’ wealth is bolstered by stock rally amid housing slump, Statscan says

In the fourth quarter, households saw their net worth rise by $290-billion, or 1.8 per cent, to roughly $16.4-trillion, Statistics Canada said in a report Wednesday. But many homeowners have yet to face the full brunt of higher interest rates until they renew their mortgages, writes Matt Lundy. Others have variable-rate mortgages with fixed payments, which means that as rates have increased, more of their bill is going toward the interest portion rather than paying down the principal. The looming renewals, among other factors, led Canadians to stay cautious about taking on new debt — financial liabilities only rose by 3.4 per cent in 2023.

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Allied REIT takes control of two towers co-developed with Westbank

Allied Properties REIT AP-UN-T is buying out its partner, Westbank Corp., on two office skyscrapers as the Vancouver-based real estate developer faces rising costs and legal claims at projects in Toronto and Seattle, writes Rachelle Younglai and Shane Dingman. The deal, which is expected to close in early April, will significantly cut the amount of debt Westbank owes Allied — giving them an infusion of cash in the process. In November, The Globe and Mail reported that Westbank faced legal claims for $25-million in unpaid work at the Mirvish Village development in Toronto.

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Advertised rents for purpose-built rentals were up 14.4 per cent nationwide in February, compared with the same month in 2023. An apartment rental building in Toronto’s Beach neighbourhood on Mar 11.Fred Lum/The Globe and Mail

Why rent inflation is much higher for rental apartments than for condos

In Canada’s overheated rental market, tenants are increasingly gravitating toward purpose-built rentals, experts say – demand that is driving up rent for these units much faster than for condos, writes Erica Alini. Advertised rents for purpose-built rentals, also called rental apartments, were up 14.4 per cent nationwide in February, compared with last year— rents for condos, on the other hand, grew by just 5 per cent in the same timeframe. A severe supply shortage, affordable prices and the allure of rent control in older buildings is driving up the prices in purpose-built rentals.

Renters have harder time accumulating wealth than homeowners, RBC report says

According to the report, homeowners have seen their net worth grow from nine times household disposable income to 13 times since 2010, while for renters, net wealth grew from three to 3.5 times over the same period. The gap has widened even though renters’ incomes have risen at the same pace as homeowners. Meanwhile, homeowners are also accumulating home equity with their housing payments. The tightening of renters’ incomes will make it even harder to save up for a down payment, economists say.

Home of the week: Festival Tower penthouse with an interior designer touch

  • Home of the Week, 80 John St., Upper Penthouse 1, TorontoJohn Lee/John Lee/Soare Productions

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80 John St., Upper Penthouse 1, Toronto

The 46th-floor penthouse sits right above the TIFF Lightbox theatre, which is home to the Toronto International Film Festival. When you first enter the two-bedroom-plus-den condo, you’re greeted by 11-foot-tall ceilings leading you into the living room. The previous owners had white-lacquered book cases installed on the wall separating the living area from the kitchen — which frames the spacious room — and the primary bedroom has its own hotel-style bathroom attached. The 180-degree view from the penthouse features a panoramic view of the city’s downtown. and stretches across Lake Ontario.

What do you think is the asking price for the property?

a. $2,999,000

b. $3,875,000

c. $4,195,000

d. $4,500,000

c. The asking price is $4,195,000.

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At Real Estate's Biggest Conference, Property Crisis Denial Shifts to Acceptance – Bloomberg

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Welcome to The Brink. I’m Jack Sidders, a reporter usually based in London but this week I’ve been in Cannes where about 20,000 real estate professionals gathered for the annual Mipim conference. We also have news on German giant Bayer, crypto exchange FTX and Swedish debt collector Intrum. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net or DM on X to @JackSidders.

Mipim is supposed to be a time for developers to show off their grand visions for projects of the future, with cities built in miniature hoping to lure pools of capital that will turn them into full scale realities.

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