Trump Owned West Side Parcel Selling For $1.8 Billion

Donald Trump isn't a fool. He's made (and lost) billions in real estate. He had scooped up a large parcel near his recently built Trump Place (Riverside South) for $100 million a few years back. Now, he's going to try and sell it for $1.8 billion.

He'll probably get it because there is high demand for residential property in Manhattan, especially with river views. The parcel is a 77-acre property that will include a 21-acre public park that slopes down to the Hudson River.

In other words, a tremendous opportunity for anyone purchasing the property. It also underscores the huge runup in prices over the last decade, as well as the pitfalls in building and developing the Hudson Yards parcel. That's where the City and the NY Jets want to build their stadium and mixed use facilities - including thousands of housing units.

There are several key differences between the properties, including the fact that the City doesn't have to rezone the Trump property, and there is no need for the City to put any money towards that deal. The property is essentially ready for building. That isn't the case with the Hudson Yards property because a platform must first be built over the MTA train yards, and the MTA has to be compensated for the air rights. Hundreds of millions of dollars will have to be spent by the City to get the Hudson Yards property ready for construction of any sort, while the Trump property is ready for construction immediately.

Extell, which is building the 60-story Orion condo tower on 42nd Street and owns the W Hotel in Times Square, is buying the three rental buildings at the site, as well as lots to build eight more apartment houses and nearly 3,000 apartments.

The deal also includes a five-acre parcel between 59th and 62nd Streets that real estate executives said could be rezoned for an additional 1,500 apartments. There are four condo buildings at the site that are not part of the deal.

It is unclear whether any new buildings on the site will bear Mr. Trump's name in characteristic gold letters.

Real estate executives said that the new buyers would have to pay the developer for using his name.

"I think the potential for this site is huge, because in the aftermath of Time Warner Center at Columbus Circle, the redevelopment of the Far West Side is happening at an extremely rapid rate," said Nancy Packes, president of Feathered Nest, a residential broker.

Thousands of new housing units may help stabilizing the ever-rising prices, but the fact is that people are willing to pay the higher prices and sellers are able to demand higher premiums for their houses/condos/co-ops.