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How The Pandemic Hit Trump's Retail Real Estate Empire – Forbes

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By Dan Alexander

On the corner 59th Street and Park Avenue in midtown Manhattan stands a beautiful building named Trump Park Avenue. Once known as the Hotel Delmonico, it features arched windows, marble finishes and penthouses that have sold for upwards of $20 million. Donald Trump still owns a handful of units, including one that Jared Kushner and Ivanka Trump used to call home.

Recently, however, the property has lost some of its luster. The reason: Its storefronts went quiet during the pandemic. The parent company of New York Sports Clubs, which operated a gym in the building, closed its locations in March 2020, then declared bankruptcy six months later. Capital One, which was paying an estimated $1 million a year to lease space next door, left in May 2020, about a year and a half before its lease expired.

Like a lot of real estate owners, the former president has struggled to keep his commercial spaces humming in the Covid era. Heading into the pandemic, Trump had over 30 retail tenants in New York City. About a quarter of them either have left their properties or shut down their operations, according to a Forbes review.

A few blocks from Trump Park Avenue, GNC closed down its Trump Plaza location, for which it paid an estimated $400,000 in annual rent. A spokesperson for the Trump Organization says a new business will be opening soon. Data connected to the loan on the property shows that revenues have already dropped 23% from their pre-pandemic levels, causing profits to tumble 43%.

Starbucks used to have a bustling location inside Trump Tower, complete with a signed photo of Ivanka Trump kissing a coffee cup. The space was roped off on a recent visit, and the store finder on Starbucks’ website no longer shows a location inside the building. A representative for the Trump Organization claims Starbucks is still paying rent, but the outlook doesn’t look good. An employee answering the phones at the Trump International Hotel in Washington, D.C. said the coffee company had closed its location there, too.

EMPTY ENTRANCES

Signs came down and storefronts went still at several Trump properties.


Capital One, Trump Park Avenue


GNC, Trump Plaza


Teresa’s Brick Oven Pizza and Cafe, 1290 Avenue of the Americas

Not far from Trump Tower sits 1290 Avenue of the Americas, a massive skyscraper in which Trump owns a 30% interest alongside publicly traded Vornado Realty Trust. The former president doesn’t handle day-to-day management of that property, but he does collect money from it. So it wasn’t good news for him when it lost three of its retail tenants—Teresa’s Brick Oven Pizza and Cafe, Earl of Sandwich and Barilla Restaurant. It’s tough to run a midtown Manhattan lunch spot when so many workers are staying home.

Trump and Vornado are also partners at 555 California Street in San Francisco, another large office building. A ratings report published in April said the number of people entering the property dropped from roughly 5,000 to 200 during the pandemic. A handful of tenants—including Boys’ Deli, Bay Club and Proper Food—asked for rent relief, according to the report.

There are signs of a comeback. At Trump World Tower, on the east side of Manhattan, the World Bar shut down, but a notice posted to the door in August said that something called “Pure Beef Inc.” was applying for a liquor license. A spokesperson for the Trump Organization says the space has been leased, and construction should start soon. Downtown, an Italian bistro named Nerolab is preparing to open a space in Trump’s 40 Wall Street.

Gucci, the former president’s most important tenant, pays an estimated $24 million a year in rent and reportedly reupped its lease in 2020. Its previous deal wasn’t set to expire until 2026, so the retailer may have gotten a discount by renegotiating early.

Around the corner from the Gucci store sits Trump’s second-most important retail outpost, 6 East 57th Street. Nike rented that space for decades, paying an estimated $16 million annually, before moving out a few years ago and subleasing to Tiffany. The jeweler is expected to vacate in 2022. That might leave the former president looking for a new tenant at a time when retail real estate is still limping back from the pandemic.

IMAGE CREDITS


ILLUSTRATIONS BY LASAGNAFORONE/GETTYIMAGES (MAP); ANILYANIK/GETTYIMAGES (BUILDINGS); FINGERMEDIUM/GETTYIMAGES (DIAMONDS); CALVINDEXTER/GETTYIMAGES (TREES).

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Montreal real estate prices soar 21% amid lower listings, sales in November – Global News

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The Quebec Professional Association of Real Estate Brokers says November home sales and new listings fell in Montreal as prices soared by more than 20 per cent compared with a year ago.

The association says sales for the month totalled 4,402, a 17 per cent drop from 5,296 in November 2020.

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New listings amounted to 5,056, down 14 per cent from 5,848 last November.

The median price of a single-family home soared by 21 per cent compared with a year ago to reach $525,000, while condos went up by 18 per cent to hit $374,000 and plexes with two to five units had a 15 per cent spike pushing them to $725,000.

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Apart from condominiums, which saw a slight decline, the association says the median prices were also up from October 2021.

Charles Brant, the association’s director of market analysis, says he noticed a lack of supply and persistently high demand last month that placed pressure on prices and encouraged potential sellers to get into the market.

“The announcement of an earlier-than-expected rise in interest rates no doubt motivated potential sellers to advance their project in order to benefit from the sustained activity and the opportunity to sell at the best price,” he said in a statement.

© 2021 The Canadian Press

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Montreal real estate prices soar 21% amid lower listings in Nov.: brokers group – moosejawtoday.com

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MONTREAL — The Quebec Professional Association of Real Estate Brokers says November home sales and new listings fell in Montreal as prices soared by more than 20 per cent compared with a year ago.

The association says sales for the month totalled 4,402, a 17 per cent drop from 5,296 in November 2020.

New listings amounted to 5,056, down 14 per cent from 5,848 last November.

The median price of a single-family soared by 21 per cent compared with a year ago to reach $525,000, while condos went up by 18 per cent to hit $374,000 and plexes with two to five units had a 15 per cent spike pushing them to $725,000. 

Apart from condominiums, which saw a slight decline, the association says the median prices were also up from October 2021.

Charles Brant, the association’s director of market analysis, says he noticed a lack of supply and persistently high demand last month that placed pressure on prices and encouraged potential sellers to get into the market. 

“The announcement of an earlier-than-expected rise in interest rates no doubt motivated potential sellers to advance their project in order to benefit from the sustained activity and the opportunity to sell at the best price,” he said in a statement.

This report by The Canadian Press was first published Dec. 7, 2021.

The Canadian Press

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Ottawa home prices rose 19% year-over-year in November: real estate board – Globalnews.ca

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Ottawa housing prices continue to climb as 2021 draws to a close. It’s a trend real estate experts expect to continue in 2022.

The Ottawa Real Estate Board said that November’s average sale price for a condo was $432,099, while the typical residential-class home sold for $716,922. Both represented increases of 19 per cent over average sale prices in November 2020.

Though those figures represent significant jumps year-over-year, OREB President Debra Wright says that the month-to-month prices from October to November were relatively steady in the residential market and up seven percent for condos.


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“This is a far better situation than the monthly price escalations we had seen in the first quarter of 2021,” Wright said in a statement. “However, there is no question that supply constraints will continue to place upward pressure on prices until that is remedied.”

RE/MAX said in its 2022 Canadian housing market outlook last week that Ottawa average home price is expected to rise a further five per cent next year. That’s below estimates for other large markets in Ontario, such as Mississauga (14 per cent), Toronto (10 per cent) and Brampton (eight per cent).

In Ottawa as well as those other cities, RE/MAX said home prices could feel pressure as increased immigration levels further constrain supply levels.

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Canadian homebuyers facing weeks of move-in delays tied to supply chain snags

The OREB projects housing inventory in Ottawa is currently at a one-month supply, with the 1,430 units added to the market last month representing a 27 per cent drop from October and a 13 per cent decline from levels in November 2020.

While sales sit at “30 or so units over the five-year listing average, this is simply not sustainable and is taking us further away from the balanced market that will bring much-needed relief to potential buyers,” Wright said.

OREB members meanwhile sold 1,459 properties in November, a drop from the 1,605 seen in the same month last year. Sales figures were unseasonably high during this period in 2020, however, as more homes were sold in the fall because pandemic-driven lockdowns and general economic anxiety pushed demand from the usually busy spring and summer to later in the year.

November 2021’s sales volumes were still above the five-year average of 1,348 total units sold in November.

Realtors with the OREB have also gotten more involved with rentals in the past year, helping nearly 4,500 tenants find new units so far in 2021 compared with 3,120 such deals this time last year.


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Cost of housing biggest crisis outside the pandemic: Singh – Nov 28, 2021

© 2021 Global News, a division of Corus Entertainment Inc.

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