Trump Tower in New York City has become one of the least desirable luxury properties in Manhattan, it was revealed Tuesday, with several units selling at more than a 20 per cent loss after adjusting for inflation.
Only 0.23 per cent of homes in Manhattan over the past two years have sold at a loss, Bloomberg reported.
‘No one wants in that building,’ Michael Sklar, who sold his parent’s condo in Trump Tower, said. ‘The name on the building became a problem.’
Sklar’s parents had a one bed, one and a half bath 57th floor unit, which was sold for $1.83 million in October. The family originally purchased the condo for $1.4 million in 2004 – $1.84 million in 2019 prices, adjusted for inflation.
Sklar’s parents also put about $400,000 into remodeling the property.
A two-bed, two-and-a-half bathroom on the 37th floor and with Central Park views went from being listed for $7.75 million in February 2017, to selling in December 2018 for $4.4 million
A 40th floor one-bedroom, one and a half-bathroom was sold for $1.79 million in October 2017, having been bought for $1.875 million in 2009 – a real-terms loss of $450,000
The former residents also found it became more difficult to live in the building after Trump won the election in 2016.
Sklar said his mother used to take cabs to the front entrance of Trump Tower from the airport, but after the election security forced cab drivers to drop her off a few hundred feet away from the front door.
According to property records, at least 13 condos in Trump Tower were sold since the 2016 election. Eight of nine transactions showed an inflation-adjusted loss for the seller.
One condo currently on sale – a two-bed, two-and-a-half bathroom on the 32nd floor is currently listed for $2.84 million. It was purchased in 2006 for $2.3 million, which means a loss of $60,000 when adjusted for inflation.
But the owners started listing it at $4 million and have since steadily seen the listing price fall.
Another condo, a two-bed, two-and-a-half bathroom on the 37th floor and with Central Park views went from being listed for $7.75 million in February 2017, to selling in December 2018 for $4.4 million.
And a 40th floor one-bedroom, one and a half-bathroom was sold for $1.79 million in October 2017, having been bought for $1.875 million in 2009 – a real-terms loss of $450,000. Its owners had listed it for $4 million in March 2016 and slashed the price repeatedly.
Trump Tower is a 36-year-old building that has not been substantially updated in years, and the occupancy rate has plunged over the last seven years.
It went from 99 per cent filled to 83 per cent, which is a vacancy rate that’s around twice the average in Manhattan.
Only 57 homes in Manhattan over the past two years have sold at a loss out of the 24,871 third-party sales, however, that statistic has not been adjusted for inflation.
The Trump name has become a turnoff for liberals in New York City where, as of 2018, there were 5.8 million registered Democratic voters compared to the 2.6 million Republican registered voters, according to the state’s Board of Elections data.
A New York real estate agent said his clients have repeatedly told him not to show them units in Trump buildings.
Several other Trump-branded businesses have been suffering since he took office. The number of rounds of golf played at his public course in New York are down and many buildings have taken down the Trump name.
Some corners of the business, however, have thrived, including Trump’s Washington D.C. hotel.
The commercial part of Trump Tower has also been struggling to find tenants for the 42,000 square feet of vacant office space.
Units are selling at more than a 20 per cent loss, and one former resident said, ‘No one wants in that building. The name on the building became a problem’
Losses: Michael Sklar’s parents had a one bed, one and a half bath 57th floor unit, which was sold for $1.83 million in October. The family originally purchased the condo for $1.4 million in 2004 – $1.84 million in 2019 prices, adjusted for inflation, meaning they lost $1,000 in real terms, and the $400,000 they had invested in upgrading it
Tenants say it became more difficult to live there after Trump won the election, especially with the increased security. Some say cabs could no longer approach the main entrance and instead had to drop them off a few hundred feet away
‘If I were looking for office space, that would be a building I’d want to avoid,’ Edward Son, a former market analyst for CoStar Group Inc., said.
Trump built his namesake tower in 1983 just two blocks from Central Park in an area known as the Plaza District, and the building includes a 60-foot waterfall and pink Italian marble.
Although areas in the Plaza District with views of Central Park usually sell for $100 per square foot, Trump Tower advertised five vacancies in January where the price ranged from $72 to $85 per square foot.
Trump ran his 2016 presidential campaign from the NYC tower, but has only visited 13 times since his inauguration in January 2017.
Another reason many feel Trump Tower has become undesirable have been the changes in security since the president’s election. The building has become a fortress, complete with concrete barriers, and the two main entrances have been partially blocked off.