Love him or hate him, Donald Trump knows how to make headlines in the real estate market. He is in the news today for going to contract on his mansion in Palm Beach that he purchased in 2004 for 41 million dollars. After 25 million more in upgrades The Donald has sold it for the 100 million dollar price tag.
The master showman was in the headlines a couple of months with this property threatening to turn it into a hotel. Nothing for the marketplace but it did get headlines then.
And nearly a year ago he turned down a 90 million dollar offer on the Palm Beach Mansion which he made very public. At the time I said this, “My advice to the Donald would have had my real estate agent talk to Schwarzman before the offer was made and tell him to make it 101 million. Then Donald could offer to buy Schwarzman’s old cigar case for 11 million dollars. The difference in capital gains Trump would pay would be quickly washed away in the millions of dollars of free publicity of selling the most expensive home in America.”
Do you think Donald Trump took my advice and offered a rebate at closing to make headlines? It would not surprise me.
The unnamed buyer is considering tearing down the recently remodeled mansion and possibly subdividing the property, according to sources. Although bulldozing an 80,000-square-foot luxury estate might seem bizarre for the average homeowner, it’s nothing new for ultra-rich buyers willing to pay huge sums for precious oceanfront property.
Trump paid the fire-sale price of $41.35 million for the estate in 2004. He bought it from bankrupt Abe Gosman, a former health-care magnate and Palm Beach philanthropist, then poured $25 million into a renovation overseen by Kendra Todd, winner of the third season of Trump’s TV show The Apprentice. The redo resulted in a 62,000-square- foot mansion with nine bedrooms, a ballroom, a conservatory and a 48-car garage.
But as proof that even the super-rich are not completely immune to the whims of the market, Trump did have to come down from his original asking price of $125 million. via the Palm Beach Post