trump soho hotel condominium outpacing sales predictions

At the Trump International Hotel & Tower in Las Vegas a group of condo-hotel owners are clamoring to rent out their own hotel units using their own operator because they said Trump takes too much of the rental revenue. A Trump spokesman said the company's rental agreements are competitive with other condo-hotel rental-management companies in the area.

keep dreaming

have a read of this article from New York Magazine. Great stuff

http://nymag.com/news/features/45591/

"It’s a 46-story skyscraper being built on a graveyard that’s brought together shadowy Russians and a billionaire brand name to attract internationals in a zoning-skirting scheme that’s enraged the neighborhood, sent glass shattering to the street, and killed a construction worker. It’s New York in the aughts, and inside there’s a luxury suite just for you."

verain: who are you?

There was a funny story recently about Trump Soho supposedly receiving 4,000 (or some similarly huge number) "applications" for units. It was then pointed out that ads were running in Gmail when people had the word "condo" in their email text.

Ivanka Trump looks like a Czechoslovakian Marcia Brady. Me likey! What was this thread about again?

kylewest, who are you?
for that matter, who is Cranky, tenemantal and JuiceMan?

i could be enticed to buy a unit in the building if the closing conditions included having a session with ivanka

I stood next to Ivanka at the Four Seasons restaurant one morning for breakfast after I preceeded her in the revolving door by one. She's tall and commanding. And was seated before me.

Trump people telling that their condos are selling out is like Spunky or eah saying real estate market is hot.

Ooooohhhhh!!!!! Perfect timing!

http://curbed.com/archives/2008/04/08/trump_soho_hits_craigslist_via_miami.php

verain, JuiceMan is my real name. It's of Scottish decent meaning "to be served a fruit liquid". My great grand pappy JuiceMan was from a long line of fresh fruit bartenders outside of Edinburgh. It was quite a successful family business until the vending machine arrived. The family, spirit broken by the new technology and penniless, was forced to the streets to collect empty juice cans. When my Granddaddy JuiceMan was old enough, he jumped a ship full of cranberries destined for Boston. He learned quite a bit on that ship and started a little juice company on Cape Cod, still going today. It has done quite well actually. People on this board have often wondered what I do for a living. Well, I'm trying to expand the world market / use for cranberries including lip gloss, edible neck ties, and a ground up version that when added to a rubber compound, can be used for tooth fillings and to plug tires.

Funny coincidence between what the craigslist ad says:

"Weak Dollar Fuels Foreign-Market Sales, with Global Buyers Purchasing Nearly 53% of the Building.

"Demand for units at Trump SoHo Hotel Condominium continues to be robust, with strong foreign-market sales indicating that Manhattan is the preferred location for international real estate buyers. Since sales commenced in September 2007, global buyers have purchased nearly 53 percent of the building.

%u201CThe strengthening of the Asian and Europe currencies has fueled up sales velocity by global buyers beyond even our most aggressive projections,%u201D noted Ivanka Trump, Vice President of Development and Acquisitions for the Trump Organization..."

and what the start of this thread says:

"Weak Dollar Fuels Foreign-Market Sales, with Global Buyers Purchasing Nearly 53% of the Building.

"Demand for units at Trump SoHo Hotel Condominium continues to be robust, with strong foreign-market sales indicating that Manhattan is the preferred location for international real estate buyers.
Since sales commenced in September 2007, global buyers have purchased nearly 53 percent of the building, said Rodrigo Ni�o, President of Prodigy International, the exclusive sales and marketing organization for the project.

%u201CThe strengthening of the Asian and Europe currencies has fueled up sales velocity by global buyers beyond even our most aggressive projections,%u201D noted Ivanka Trump, Vice President of Development and Acquisitions for the Trump Organization..."

NOW I REALLY, TRULY BELIEVE IT'S TRUE.

BTW visited the Inland Empire over the weekend, renamed it the Inland For-Sale Sign....

...coming to Manhattan - and Trump - shortly. Over 7k listings in Manhattan right now, up from 5,115 on December 31.

Hey steve, welcome back. While you were gone I think they made ARM's legal again and rates have dropped drastically from the 9-10% you were seeing before you left to about 6%. Just wanted to get you up to speed on all the changes occuring while you were gone. Isn't that great?

eric--when did i say the real estate market is hot? i think i've posted a few times that it is likely to go down for a bit.

Thanks for the welcome, JuiceMan! But you got what I said wrong: I never said ARMs were illegal. I said that a) they were stupid because it's a bad idea to finance a long-term investment with short-term debt; and b) new regulations would require that the borrower be able to pay the maximum reset at the time the loan is taken out.

You're right: interest rates have come down slightly since 2 weeks ago. I now see 30-year fixed jumbos with APRs of between 7.698% and 8.581% on e-loan. I KNOW! Don't rely on advertised rates. Call and you'll get a special deal! They're lower in LA, FYI.

Please don't start this crap again.

verain, sorry but you just got served big time.

thanks for lunchtime laugh!!

hey ccdevi, blame the Juice. He started the conversation.

How did Verain get served big time?

Verain got served big time because Verain published, verbatim, the ad that had been published on craigslist, which is basically a press release, which demonstrates bulls*it the entire thread is.

Really! Publishing a press release as if it's fact! And one from The Donald!

Why would I blame someone else for you lying about interest rates?

SteveJHX and Mafia seem to have misunderstood Verain's intentions when posting.

Verain should not refer to verain in the third-person. It makes verain sound odd, as if verain belonged on Seinfeld.

Perhaps verain would like to state verain's intentions when posting?

ccdevi, I did not lie about the interest rates. I posted what was advertised. You said that other rates were available by "calling" - well they may be, but they're not verifiable. Today I just posted the new rates that e-loan says are available. From that source. And they have fallen. Previously I had posted the advertised rates from Chase, BofA, Citimortgage, and others. Go and check. If other rates are available - from bankrate or other sources - then post them on the appropriate thread. But saying that, "My mortgage broker quoted me...." is unverifiable.

And I only quote the 30-year fixed rate because that is the rate that approximates the depreciation period for real property. Lower rates are sometimes (though not always) available through ARMs, but ARM's are effectively short-term rates locked inside a long-term contract, so it's not possible to know the full financial cost of the loan through amortization. Therefore, they're a lot risker.

But that does not belong on this thread.

Verain was not posting to serve or be served. Verain is not in the service business. Additionally, Verain generally does not attack people ad hominem because, typically, poor arguments are so easy to attack by themselves... However, SteveJHX is pushing Verain ...

Oh, and I also said that jumbo mortgage rates are cheaper in LA than they are here. There I saw them advertised in the high 6% range. E-LOAN - and nowhere else - shows APR's from 7.837% to 8.618% for LA.

These are rates for a $1 million mortgage on a $1.25 million property (20% down) used as a primary residence, condominium, documented income. The rates are lower for single-family loans.

These are APR's; what I had posted before were the advertised rates for 0-point (or as close as possible) loans. Therefore, it was not the APR. These are APR's because I couldn't find any 0-point loans.

Verain, OMG.

no

So how's that weakening dollar (now back at a low) treating Trump Soho?

August NY times story says..
...But to attract business, Manhattan hotel operators have slashed room rates by nearly one-third since last year, to an average of just under $200 a night.

In a condo hotel you pay fixed costs to the developer, and then share in a percentage of the upside, and as the NY TIMES points out nightly rates are being discounted. To me this translates into a very leveraged investment which is far more attractive to the developer than the investor who basically gets the downside. The developer gets cheaper financing than ever possible through traditional financing. Very asymmetric risk/reward profile.

A rational investor would never buy into a deal like this. The right to stay in the hotel for a fraction of a year is totally mispriced by the buyer.

I don't see how a lower dollar mitigates the bad economics of this form of investment.

Not sure if there's bad p.r. here. It would not take much for Extell to spin the buyers running the A.G. as "disgruntled buyers looking to change the terms of a valid contract". There has been some discussion on this board and others that buyers would close if the price was lowered. The law does not take protect buyers from entering into bad deals..

The buyers will clearly spin this in another direction.