The timing couldn’t be worse for Donald Trump as he faces the prospect of having to sell property to cover a massive verdict against him.
The former president said in a court filing Wednesday he may soon need “to raise capital under exigent circumstances” to push ahead with an appeal of New York state’s $454 million civil fraud verdict against him. A brutal market for many commercial property owners means he faces significant losses in his real estate empire if he unloads assets.
The billionaire has few options. He must pay the full judgment by March 25 or arrange a bond for at least 110% of the amount in order to put the fine on hold while he appeals. To get an appeal bond, Trump will need to hand over cash, sell properties or use them as collateral, tying up most if not all of his liquid assets for months or longer.
Unless Trump can convince the appeals court to put the verdict on hold during his entire appeal, he could find himself in a financial squeeze.
If he’s forced to sell, “there would be no way to recover any property sold following a successful appeal and no means to recover the resulting financial losses,” Trump attorney Alina Habba said in the filing. Meanwhile, New York Attorney General Letitia James has made clear that she’s prepared to seize Trump’s assets if he doesn’t pay the verdict or post an appeals bond on time.
Brutal Market
Making matters worse is a brutal market for many commercial real estate owners. Property values plunged as borrowing costs rose, and the remote work trend that started during the pandemic continues to cut into demand for office space. Prices slumped 22% in the year through January, according to real estate analytics firm Green Street.
Habba didn’t immediately respond to a request for comment.
Many sellers have been forced to accept drastically lower prices. The Aon Center, a Los Angeles office tower, recently sold for $147.8 million, about 45% less than its previous purchase price in 2014. A Los Angeles office building located near Century City and Beverly Hills sold for about 52% less than its price five years ago.
The Trump Organization owns or invests in multiple office towers from New York to San Francisco. One of its key Manhattan properties, 40 Wall St., was purchased by Trump in what his business hails as “one of the great real estate deals of all time” back in 1995. In 2015, it was valued at $540 million, according to commercial mortgage-backed securities data. That has since fallen to $270 million, the Bloomberg Billionaires Index estimates.
Trump’s filing with the appeals court was the first time he’s hinted publicly that he may not have enough liquid assets to cover the verdict in the fraud case, where a judge ruled Feb. 16 that the former president had misled banks for years in violation of New York law. Trump also owes $83.3 million to writer E. Jean Carroll, who won a defamation suit against him last month, making matters even worse for the presidential candidate.
In testimony last year, Trump claimed to have more than $400 million in cash. While that’s a hefty sum, it wouldn’t be enough to cover the bonds he’d need to post with the court while appealing the back-to-back verdicts.
Trump SPAC Shares
Meanwhile, Trump’s finances could get a boost from his Trump Media & Technology Group — which operates the Truth Social platform he posts on daily. In 2021, it agreed to merge with a special purpose acquisition company called Digital World Acquisition to become a publicly traded company.
A frenetic rally in a stock tied to Trump Media & Technology Group has minted a nearly $4 billion windfall for Trump. But that won’t help him for now. The profit is only on paper and he’ll have to wait months to monetize it. If the stock stays up, he could use it replenish his coffers down the road.
Meanwhile on Wednesday, the co-founders of Trump’s media company accused the former president of trying to water down the value of their shares. The lawsuit, filed in Delaware, could delay the merger deal even more, depriving him of billions as a fresh source of cash to pay down his verdicts.
Trump has proposed posting a smaller $100 million bond while he appeals the New York fraud verdict, arguing that the judgment against him was “more than adequately secured” without posting a full bond to appeal. Trump said his “vast ownership interests in New York real estate” was sufficient to ensure he’ll pay the fine if his appeal failed. After all, he argued, “trophy properties” like 40 Wall Street cannot be “removed from the jurisdiction in secret.”
In the appeals court filing, Trump’s attorney said other properties could be used for collateral, including Trump Tower and Trump Park Avenue in Manhattan, his Seven Springs estate outside New York City, and Trump National Golf Club.
‘Insufficient’ Assets
James balked at Trump’s offer for a smaller bond, arguing in a letter to the appeals court that risked leaving the state empty handed if Trump’s appeal failed.
Trump and the other defendants in the case, including his two grown sons, “all but concede that Mr. Trump has insufficient liquid assets to satisfy the judgment,” James said in the letter. “A prevailing plaintiff is entitled to have her award secured, and defendants have never demonstrated that Mr. Trump’s liquid assets could satisfy the full amount of the judgment.”
James has made clear that she’s prepared to seize Trump’s assets if he doesn’t pay the verdict or post an appeals bond on time, mentioning 40 Wall Street explicitly as a potential target in a recent interview with ABC News. Habba, Trump’s attorney, criticized those remarks in her letter to the court, accusing James of “shamelessly” threatening to seize Trump’s assets “if she is not paid quickly enough.”
Despite Trump’s warnings about his financial condition, an appeals court judge in Manhattan denied his emergency request Wednesday for a temporary halt to enforcement of the verdict in the fraud case, at least for now.
But the former president will get another shot at arguing for a delay that would last throughout his legal challenge to the civil fraud judgment. James will file a response to that request by March 11, with any response by Trump due March 18. A full appeals court panel could rule any time after that.
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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.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
