Uncommon Knowledge
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Jeff Sutton, a prominent New York City real estate entrepreneur, has sold 717 Fifth Avenue to luxury brand Gucci for $963 million, a deal that’s caught the eye of former president and real estate mogul Donald Trump.
Trump, whose own real estate holdings include the Trump Tower less than six blocks away, applauded the transaction on Truth Social, congratulating Sutton on the near $1 billion deal. Sutton’s landmark sale of 717 Fifth Avenue adds to his streak of high-profile New York real estate deals, including the recent $835 million combined sales of properties to Prada.
Sutton, known for his real estate acumen and a net worth of $2.7 billion, according to Forbes, is the founder and president of Wharton Properties, a New York-based commercial real estate company. His portfolio, boasting over 120 prime New York City properties, has been shaped alongside Eliot Tawil, a known associate who has financially supported Trump. Tawil contributed $2,800 to Trump’s 2020 campaign on two occasions, according to campaign finance tracker Open Secrets.
As Sutton celebrates his recent near-billion-dollar real estate triumph, the former president’s nearby Trump Tower and adjacent businesses face scrutiny amidst ongoing legal scrutiny. The outcome of Trump’s defamation case brought by former Elle writer E Jean Carroll, for which he’s already been found liable, looms, potentially shaking his real estate realm after New York Attorney General Letitia James’s probe established his liability in fraudulent activities.
Carroll is seeking $10 million in damages for defamation from Trump. In 2023, a jury found Trump sexually abused Carroll in the mid-1990s at a New York City department store and defamed her over it.
James’ case, which has been a focal point while Trump aims to secure the GOP nomination for the 2024 presidential election, revolves around allegations of fraudulent practices in asset valuations by Trump, his sons Donald Jr. and Eric, and their business entity, The Trump Organization. The case hinges on accusations of systematic overstatement of assets to secure favorable loans and insurance terms, described as a scheme to inflate Trump’s net worth.
AG James has proposed a substantial financial penalty of $370 million against Trump and associates, Newsweek previously reported, significantly higher than the initial $250 million sought, as well as banning the former president from dealing in the real estate industry.
Trump’s defense has strongly denied the allegations, asserting no real-world impact or material misstatements in the financial statements in question. They argue that the case is a political maneuver targeting Trump’s presidential campaign.
Newsweek has reached out to the Trump campaign via email for comment.
With closing arguments concluded, anticipation mounts over the final ruling by Judge Arthur Engoron, expected by the end of January. The decision will determine the financial repercussions for Trump and could also significantly impact his future business endeavors.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
The Canadian Press. All rights reserved.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
The Canadian Press. All rights reserved.
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