$1.8b sale 'biggest residential deal ever'.In what Donald Trump  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. has publicly called "the biggest
residential deal ever made," the Trump Organization The Trump Organization is the primary company of Donald Trump, a prominent American real estate developer. Trump is the current CEO of the company. The company oversees nearly all of the business development interests of Donald Trump, such as real estate, hotels, golf clubs, etc. and a
consortium of Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. investors have agreed to sell Riverside South
Riverside South , a 77-acre land parcel on the West Side of Manhattan, to a joint venture of Extell Development Corporation and the Carlyle Group for $1.8 billion. The property, which first came into Trump's hands in the 1970's, stretches from 59th Street to 72nd Street and from West End Avenue to the Hudson River, and includes three rental apartment buildings, a five-acre piece of land that is currently zoned for industrial use and a planned public park. According to some sources, Trump, who owns a 50% stake in Riverside South, made more than $1 billion on the sale--representing an almost 1000% return on his initial investment. "Extell Development Group and the Carlyle Group are two very sophisticated investors. It's proof that we are not in a bubble, we are truly in a boom," said Daren Hornig, chief executive officer of residential firm, Dwelling Quest. "You could still make money in development. What Trump did on the West Side shows that there is still money to be made. He started looking at this site in the 1970s, now it's 2005 and the deal has reached another level of sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. . By the time [the new buyers] are done with their long-term plan, it will be 2010 or 2015 and the price will be still greater." Though executives at the Carlyle Group did not return calls, according to published reports, Riverside South's new owners plan to build at least eight additional apartment buildings on the site. If they are able to change the zoning for the industrial part of the land, that residential development may grow even bigger. But though everyone, including local community groups, thinks the deal is excellent news, Hornig is still astounded a·stound tr.v. a·stound·ed, a·stound·ing, a·stounds To astonish and bewilder. See Synonyms at surprise. [From Middle English astoned, past participle of astonen, by the purchase price. "It really depends on how you look at the value, I wouldn't be surprised if there was some methodology in the pricing that had to do with the if, and when, scenarios," he noted. "From what it is zoned for today and from what the rental income is, I just can't imagine a $1.8 billion price. "But, of course, any time you can take $1.8 billion off the table, in any real estate market, there is no one who complains." "I think it's an indication of the depth and breadth of the market Breadth of the market In the context of general equities, percentage of stocks participating in a particular market move. Technical analysts say there was significant breadth if two-thirds of the stocks listed on an exchange move in the same direction during a trading session. and an extremely, extremely positive sign for New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. ." |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion