It is now being reported that Trump Tower in New York City has become one of the least desirable luxury properties in Manhattan, with several units selling at more than a 20 per cent loss after adjusting for inflation.
In comparison, Bloomberg reports that only 1 in 400 properties sold over the last two years in NYC were sold at a loss. "No one wants [a unit] in that building," said Michael Sklar, who recently sold his parents' condo in Trump Tower.
Sklar's parents had a one bedroom, one and a half bath 57th floor unit. The family originally purchased the condo for $1.4 million in 2004, which is the same as $1.9 million in today's dollars. The Skiars spent $400,000 to remodel the place-- which means that they needed to sell the property for $2.4 million to break even. They eventually unloaded the property for $1.83 million-- a loss exceeding a half million dollars.
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 loss of $450,000.
A two-bedroom, two-and-a-half bathroom unit 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.
One condo currently on the market-- a two-bedroom, two-and-a-half bathroom unit on the 32nd floor-- is currently listed for $2.84 million. Even if it sells at list price, it would represent a $60K net loss-- and that isn't even counting the $90K commission the seller would also have to pay.
A one bedroom, one and a half bath on the 31st floor sold at $600K below the asking price of $2 million in January-- a $26,000 real-term loss on its 2005 sale for $1.275 million (again, not counting the $45K real estate commission.
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. Tenants say it has became more difficult to live there after Trump won the election, especially with the increased security. Some say cabs can no longer approach the main entrance and instead must drop them off a few hundred feet away.
New York real estate agents say that clients consistently refuse to look at 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.
The commercial part of Trump Tower has also been struggling to find tenants for the 42,000 square feet of vacant office space. 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 with prices as low as $72 per square foot.
No comments:
Post a Comment