Donald Trump, is the richest individual ever to hold the position of the President of the United States. His wealth is no surprise as prior to his political career, he was renowned for his acumen in real estate investment.
Having lost the last election at the polls, he promised to contest in the 2024 elections. While there’s a declining prospect of a Trump presidency, in this piece, we will look at his career in real estate.
Over the years, he has bought and sold properties, from single-room apartments to casinos and skyscrapers. A number of these investments were excellent, while others didn’t turn out so well. Below we have discussed a few notable deals.
Grand Hyatt Hotel
Donald Trump’s purchase of the Commodore Hotel in 1976 was among his early real estate wins. He partnered with the Hyatt Organization and purchased the $1.5 million debt-ridden business for $10 million. The investment was a risky one but it turned out a success, with the building being transformed into the iconic Grand Hyatt Hotel.
He sold his stake in the hotel to the Hyatt Organization for $142 million. Certainly, a success and a huge profit for Trump, however, the building is going to be demolished in 2023.
Trump Tower
When the Trump Tower opened in the early 80s, it instantly became one of the monuments of Manhattan. The 58-story building contained luxury residences, opulent retailers, and premium eateries. There’s been a bit of controversy regarding the size of the penthouse apartment.
Donald Trump had previously claimed it is 30,000 square feet, while financial statements in 2017 stated 11,000 square feet. Nonetheless, the purchase of the property was a huge success as it recorded notable profits.
By 1987, apartment sales had generated up to $240 million. In 2019, SEC filing records stated that revenue from rented-out restaurants and shops reached a total of $13.3 million. It was also used as a hub for the ex-president’s election campaign in 2020.
At this time, the Trump Tower continued to rake in cash, bolstering the income of the property by $1.6 million. Its value was estimated at $450 million in 2017, though Forbes places it around $371 million today.
Trump Plaza Hotel
The remarkable edifice in Atlantic City, New Jersey was opened in 1984. The costs for putting up the structure and the accompanying decorations totaled about $210 million. Unlike the first two investments, this didn’t turn out well.
Operations of the casino began to hit the rocks when Trump poured funds into other ventures in the following year. Undertaking other projects like the Trump Taj Mahal meant funds were not concentrated on the Trump Plaza Hotel. Taking on loans for these structures also led to a $3 billion debt.
After several filings for bankruptcy, the Plaza was shut down in 2014 and demolished in 2021. While it seemed like a blow for a couple of New Jersey casino enthusiasts, the rise of online casinos has served as a perfect substitute. To help players, comparison sites recommend operators with perks like online casino no deposit bonus offers for signing up. The platform also provides in-depth reviews of each casino and information on how to claim bonuses, along with game tips and frequently asked questions to assist new players.
Mar-a-Lago
The resort in Palm Beach, Florida was purchased in 1985 following a bit of drama. Trump had initially offered $15 million to the previous owners who refused to sell. As a result, he bought the land separating the estate from the ocean and announced a plan to build a structure on it.
Knowing the building will block the elegant sea view from the Mar-a-Lago and reduce its value to other purchasers, the owners gave in to selling it. Trump eventually acquired the entire estate for the sum of $8 million.
On its purchase, the Mar-a-Lago was converted to a private club, with a $100,000 charge for new members who were initiated. It has been one of the most successful Trump enterprises, raking in profits of more than $15.6 million in 2014.
It also recorded a remarkable increase in 2020, with up to $22.3 million in profits. Most recently, it was raided by the FBI in August 2022 in the execution of a search warrant on the ex-president.
