If you’ve ever dreamed of living in a Trump Tower, now is the time to take action. The President’s first 100 days may have been a bit bumpy for his administration, but its been far rougher on his real estate interests.
Just after the election, Trump’s hotels took a beating, with occupancy and average rates plummeting in the weeks between Trump’s win and his inauguration. Democrats even claim that Trump’s DC hotel, built in the Old Post Office just steps from the White House, has lost more than $1.1 million million in the last six months.
But Trump’s high-end properties in Las Vegas, Chicago and New York still seemed to be doing well, largely because turnover within the luxury high-rises was rare. Now that final quarter 2016 results are in though, its a different story.
The Chicago Tribune reports that there’s been a mass exodus of both retailers and residents from Trump’s Chicago tower, leaving a “glut” of condos for sale or rent, with prices for a studio, which were originally offered in the high six figures, hovering as low as $300,000.
The tower has 52 units for sale. Other, similar buildings, with comparably priced units, have fewer than 10. According to local real estate agents, spaces in Chicago’s Trump Tower stay on the market twice as long as apartments in other units, on average.
Of Trump Tower condos that have sold since Donald’s inauguration, most were snapped up by LLCs, not individual buyers. In the Las Vegas Trump Tower, a Chinese company – that tried to remain anonymous – snapped up a number of units, leading to speculation that foreign business investors could just be buying Trump property to curry favor with the President.
In New York, businesses are leaving Trump Tower’s commercial spaces, citing a backlash against the President that led to a “sharp drop in business.”
It also doesn’t seem like the Trump company will be opening any new hotels or hotel-residences any time soon. Before Trump was elected, the Trump Corporation announced that any new hotels would come under the moniker, “Scion,” instead of the eponymous “Trump.” But even those plans have since been scrapped; the first Scion tower, slated to open in Dallas is now stalled because of “public opposition.”
Savvy capitalists, of course, could see a dramatic opportunity. With some of the best views in the world, Trump tower properties are a great deal right now, as long as you can put up with a few snide comments and the occasional mooning.