Donald Trump is planning to introduce luxury condominiums in a Miami suburb, and notably, the selling point is Trump’s name. On Wednesday evening, the Doral City Council granted preliminary approval for the residential and commercial complex he wants to build on the edge of the Trump National Doral Miami.
Within the Trump National Doral Miami resort, the former president’s family business plans to develop residences and retail spaces, as outlined in documents on the City of Doral website.
The latest "Trump-branded project" is estimated to cost between $2.5 billion and $3 billion, according to Felix Lasarte, a Miami-based attorney who is representing the Trump company developing it. The Doral project will “be astonishing for home values and great for the community all around,” "prodigious for home values and great for the community." He added, "It’s going to be an elite development."
The plan includes 1,498 residential units and 141,694 square feet of commercial space in one of the nation’s most fierce real estate markets.
Ed Russo, Trump’s long-time representative in Miami-Dade, stated that Doral International Towers is a provisional name but, he doesn’t know if the complex would ultimately bear the former president’s name.
Doral is a pleasant suburban community, and once you enter the country club, the people that visit it are very wealthy,” Lasarte said. “I think this presents an opportunity to take the chance of that.”
On Wednesday, the Doral City Commission voted 3-2 to approve an initial zoning change that would allow the planned condos and retail to be built on a portion of the property. The city’s mayor was one of the officials voting against the proposal.
Revenue Generator
The condo plan could elevate the value of a property that has been a major income source for the Trump Organization. Even if Trump fails to build anything else on the Doral property ultimately, the changes in zoning, the zoning changes, and a recent multimillion-dollar tax relief for the Blue Monster golf course could increase its considered value.
At 78, Trump experienced a significant boost in his wealth earlier this year, due to a boost from his social media startup. Although some eagerness surrounding Trump Media & Technology Group Corp has faded, it still provides a significant addition to the Republican presidential nominee’s roughly $5.3 billion net worth.
According to the Bloomberg Billionaires Index, Trump's real estate value is approximately $2.7 billion. Of that total, Trump National Doral represents $305 million, which includes $125 million in related Trump refinanced the property with a loan from San Diego-based Axos Financial Inc.
Nevertheless, a strong local market and potential development prospects could make that a low estimate. Trump Organization reported receiving a $1.5 billion bid for the property last year, contingent on zoning approvals that would allow residential development.
In the interim, Trump made another deal with the city of Doral, gaining a conservation-easement tax break in return for his commitment not to develop the land on top of the Blue Monster. The pact calls the course an important tourist attraction as well as a habitat for threatened birds, such as the little blue heron and the wood stork.
Frequently Asked Questions
1. How did the Trump Organization value Trump Tower from 2011 to 2019, excluding 2015?
The Trump Organization acquired the valuations of Trump Tower from 2011 to 2019, excluding 2015, by dividing the net operating income (NOI) by a capitalization rate.
2. What type of ownership does the Trump Organization have at 40 Wall Street?
The Trump Organization holds a ground lease at 40 Wall Street, which means it possesses a leasehold interest in the land and buildings on the land but pays rent to the owner.
3. When did Mr. Trump buy Seven Springs, and who managed it?
Mr. Trump acquired the 212-acre estate known as Seven Springs in Westchester County, NY, for $7.5 million in 1995. His son, Eric Trump, took the lead on issues related to the property and even lived there for a time.
