Donald Trump rode into the presidency on the back of his self-described billionaire status. Yet, it appears that this may have been one of his biggest lies.
The Trump Organization has been a leader on Crain’s list of largest privately held companies, but why?
Last year, the company dropped like a rock from number three to a low, low number 40. This occurred after the business disclosed its revenue was only 10 percent of its 2010 revenue.
The Trump Organization’s hotel division said last January that it intended to start a new project, a new upscale Scion hotel. It would be the first since 2006.
The president’s company said it had signed a letter of intent, but would not name the other party.
The family business also said it intended to open three budget-priced American Idea hotels. They were to be located in Mississippi.
However, no golden shovels have broken ground at any of those locations. A Trump Hotels spokesperson told Crain’s:
‘I don’t believe New York is currently a priority for those brands.’
Trump’s competition is doing quite well though. SL Green Realty is the largest commercial landlord in Manhattan, New York. It currently has a skyscraper located next to the Grand Central Terminal under construction.
The company also joined with RXR Realty to purchase almost half of another skyscraper, Worldwide Plaza, for a cool $1.7 billion.
For some reason, the condominiums at Trump Tower and the Trump International Hotel and Tower have hit the wall. Not only that, people have been staying away from Trump Golf Links at Ferry Point, which is located in the Bronx. It’s revenues plummeted $1.1 million in the past two years.
What is going on with the Trump empire? Some are blaming politics for the rapid fall from grace. More than 80 percent of New York City’s voters pulled the level for Hillary Clinton during the 2016 presidential election.
Part of the problem is that Trump’s has specialized in hotel and luxury condominiums, which is an over-saturated market. RXR specializes in commercial office building development.
Senior real estate analysts at the independent research firm CreditSights, Jesse Rosenthal said:
‘There’s been a ton of building of both those things all over the city. Regardless of what people think about Trump, the question is: Do we really need more?’
Jonathan Miller, CEO of the appraisal firm Miller Samuel, commented that nearly half of the apartments that come on the market remain unsold:
‘There’s been a ton of luxury development in New York. Regardless of what people think of Trump, the question is: do we need more?’
If a person wants to buy an apartment in Trump Tower, the price has dropped 23 percent since 2015, while others have remained steady, according to the Wall Street Journal.
The Trump International Hotel and Tower is located on Central Park West. It’s price has dropped 24 percent.
Trump spokesperson told the Journal the Trump Organization:
‘(Is) incredibly proud of the overall performance that Trump properties continue to achieve.’
Of course, a number of Trump Organization leaders are under federal investigation over improper ties to Russia during the 2016 campaign. This includes the president’s eldest son, Donald Trump Jr., who runs the business with his brother, Eric Trump.
The head attorney for the Trump Organization, Michael Cohen, is also under investigation for the same issue. A Trump Organization senior vice president and longtime personal assistant to Donald Trump Sr., Rhona Graff is also on special prosecutor Robert Mueller’s list.
The Trump Organization self-reported to Crain’s, as do all of the companies, and Graff was the intermediary. She reported $9.5 billion in revenue last year. Yet, recent federal filings indicated that the organization made between $600 million and $700 million.
Forbes estimated the president’s net worth at $3.1 billion, which was $.6 billion higher just one year ago. That dropped Trump from 156th in 2016 on the magazine’s list of richest people in the U.S. to 248th.
Featured Image via Getty Images/Chip Somodevilla.