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President Donald Trump‘s more conservative platform and ongoing feuds with elected officials may be hurting the value of his Trump-branded real estate in his more progressive hometown of New York City.
Sale prices in nine glamorous, gold-bedecked, high-rise condos that bear the president’s name in the city dropped by about 25% since he took the nation’s highest office in 2016, according to a recent report from CityRealty. For comparison, Manhattan condo prices overall dropped by just over 4.9% over the same period.
The New York City real estate platform created an index to track prices in Manhattan condo buildings that were either constructed or converted by the Trump Organization. It used sales data from the New York City Department of Finance to come up with its findings.
The properties collectively fetched about $2,047 a square foot in 2016—versus $1,534 in 2020. Many sellers have cut prices to attract buyers.
“For political reasons, the Trump name is scaring off a lot of potential buyers,” says Ondel Hylton, content director at CityRealty.
“It’s an election year. So depending on your political affiliation, if you don’t want to be associated with the Trump name, there are a lot of other high-end options in Manhattan.”
Condo prices across Manhattan in older luxury buildings have struggled in recent years as more glitzy, luxury towers with all of the newest amenities have come onto the market, competing against one another for wealthy buyers. Over the past six months, the pandemic has also led to less demand for condos in the city as many well-heeled buyers have moved to the suburbs and beyond.
The steep drops in Trump’s properties are due to these factors as well as the age of Trump-branded real estate, fewer international buyers—and his unpopularity with left-leaning, would-be residents, according to prominent real estate sources.
“The buildings themselves seem dated,” says luxury Manhattan real estate agent Chris Fry, of Elegran. Many buyers who may have considered a Trump property 20 years ago are now opting for newer, updated buildings. “There’s a lot of gold, there is peachy marble.”
The Trump brand has also been more popular with foreign and out-of-state buyers looking for pied-à-terres than city residents. The president’s tough stance on immigration along with the COVID-19 pandemic has led to fewer nonlocal buyers, which may also be hurting his real estate brand.
“If you’re looking around for a new place, the Trump name can definitely affect your decision-making,” says Fry. However, he’s continued to see interest in Trump properties from fans of the commander in chief. “If [you’re] not a Trump supporter, [you’re] going to look elsewhere.”
Since Trump was elected, six condo and apartment buildings on Manhattan’s Upper West Side have voted to remove the president’s name from their buildings. The former Trump Place high-rises, which stretch between West 59th and West 72nd streets, are not owned by the Trump Organization.
The Trump SoHo hotel, also in Manhattan, was renamed The Dominick a little over a year after the 2016 election.
Recently, the president and elected officials have been embroiled in a public battle as New York Gov. Andrew Cuomo accused the president of “actively trying to kill New York City” by withholding federal funding.
Meanwhile, Trump has charged that Cuomo and New York City Mayor Bill de Blasio are “destroying the place!”
Last year, the president officially switched his permanent residence from New York City to Palm Beach, FL.
The post Donald Trump’s Namesake Properties in NYC Have Lost This Surprising Amount of Value appeared first on Real Estate News & Insights | realtor.com®.
source https://www.realtor.com/news/celebrity-real-estate/trump-properties-in-new-york-city-lost-value/
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