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$16.5M in sales at Trump Plaza.

A $16.5 million sale for 14 condominiums at Trump Palace has spotlighted that building's continuing salability, something developer Donald J. Trump won't let anyone forget.

"I'm honored and happy," he said. "It's the most successful building in New York and a great sign that New York is coming back."

Louise Sunshine, president of The Sunshine Group which is the exclusive agent for Trump Palace, said its a great sale." The Sunshine Group does extensive marketing research and Sunshine says the entire condominium market is coming back.

Broker Carrie Chiang, senior managing director of The Corcoran Group who brokered this sale agrees. Chiang said the deal represents the highest price per square foot paid for a bulk sale. The 26,000 square foot total works out to an average of $634 per square foot but Chiang noted that some of the low floor sales pulled down the average. The penthouses chalked up over $800 per square foot. "Some of the bulks are coming in below $300 and he's getting top dollar," she observed. "Trump still has that location and the Trump name is still important."

Chiang represented Chinese investors who expect to rent out the units. "I live there," she confessed. "I love the location, it's a prime location for condos." These particular investors, she added, would not consider anywhere else. Chiang said she also has offers pending for other buyers on two more units.

Trump said contracts are out on 81 percent of the Trump Palace apartments. Of the building's 283 units, only 90 are left for sale.

Sunshine reports $44 million worth of sales in Trump Palace since November 1, including this deal. Fourteen previous sales at Trump Palace since November of 1992 were closed at an average of $642 per square foot, with one 3,335 square foot penthouse selling for $3.05 million in February at $832 per square foot.

Sunshine noted the upper floors of the Palace are becoming very stable with owners occupying the units and not renting them out. "The family [who made the bulk purchase] plans to live in at least six of the apartments," she said.

In a report prepared by the market research division of The Sunshine Group, and compiled by director Beth Stern, the Palace was compared to other upscale buildings, including Trump's own Trump Parc and Trump Tower.

The Trump buildings had original sales at an average of $659 per square foot and total resales at $786 per square foot, for an average appreciation of 19.3 percent.

At Trump Parc, the gut rehab of the former Barbizon Hotel, there were eleven resales in 1992 that averaged $526 per square foot and seven in 1993 averaging $332 per square foot. Chiang said many units in that building are on inner courtyards and depress the statistics on average sales prices. Original sales in that building closed at $681 per square foot in 1987.

Trump Tower, one of the most elegant of the city's residences, had nine resales averaging $609 per square foot last year and four in the first quarter of this year that averaged $600 per square foot. The 263 condos are all located between the 30th and 68th floors. The original closings, beginning in 1981, were made at an average of $642.

Trump Tower units are still selling at $1,000 per square foot Chiang said, while at Trump Parc, the "A" line Central Park view units are fetching $650 per square foot. "Those will never come down," Chiang observed. "The prime units always stay up."

Chiang believes the best condominium locations are those on Third Avenue and further west. At 1049 Third, an apartment closed at over $1,000 per square foot, she said, while two sales on Madison Avenue also went to $1,000 per square foot.

Zeckendorf's Central Park Place, popular with Japanese investors, is located at the corner of 57th Street and Eighth Avenue. According to The Sunshine Group, the 56-story tower had eight resales in 1992 at $356 per square foot and four in 1993, so far, at $361 per square foot. Original sales were made beginning in June of 1988 at an average of $602 per square foot.

Another Zeckdorf property, the Copeley at 68th Street and Broadway, had ten resales in 1992 for $338 per square foot after selling out at an average of $336 per square foot, the Sunshine research shows.

At 73 stories, the Ian Bruce Eichner development, Cityspire, is one of the tallest mixed buildings in the city. About 74 percent of the 340 units have sold at an average of $464 per square foot, according to The Sunshine Group. Last year, there was one sale at $422 per square foot and five resales at $397 per square foot.

Metropolitan Tower, another of the city's glitzy mixed use residences that has proved attractive to both Japanese and Italian investors, has 32 units left in its portfolio of 253, The Sunshine Group reports. Last year there were four closings at an average of $396 per square foot and ten resales at an average of $635 per square foot. This year, two resales have occurred for an average of $579 per square foot. Original closings began in January of 1987 at an average of $560 per square foot.

Other recent sales compiled by The Sunshine Group include information on the 38-story Carol Management project, The Alfred on West 61st Street and Amsterdam Avenue, which had ten resales in 1992 at an average of $319. The building sold out at approximately $345 per square foot beginning in 1986.

Last year, two apartments at the Essex House sold for an average of $582 per square foot while seven units at The Century at 25 Central Park West sold for an average of $315 per square foot.

"There really has to be magic to his name," said attorney Jay Neveloff, a partner with Kramer, Levin, Nessen, Kamin & Frankel who represents Trump. "The apartments are holding their value."

In 1991, Trump worked out a deal with Citibank, his lender on the Palace. They gave him a $10 million irrevocable letter of credit, as well as an additional $3.665 million leftover from the construction loan. The money was pledged for common charges and property taxes through 1994 on units that were not sold. This gave the project additional financial stability.
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Title Annotation:for condominiums at Trump Palace, New York, New York
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Jun 2, 1993
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