A New York judge’s ruling Tuesday that valued Donald Trump’s sprawling, headline-grabbing Florida estate at $18 million has left industry experts baffled.
In his ruling, Manhattan Supreme Court Justice Arthur Engoron delivered a sweeping verdict that the former president committed fraud by inflating the value of his wealth, with details including the monetary value associated with Mar-a-Lago in Palm Beach.
The decision, made without a jury, has sent shockwaves through political — and real estate — circles, especially the $18 million base value for the property.
A prominent Palm Beach real estate broker, speaking on condition of anonymity, told The Post, “It’s very confusing to think that the property is only worth $18 million.”
The insider added, “If the property was on the market today, I would list it at about $300 million, minimum … at least. He also has a golf course minutes away.”
Engoron’s decision holds Trump, 77, along with his family and his business empire, the Trump Organization, liable for fraud — a key allegation in New York Attorney General Letitia James’ lawsuit against the defendants.
In a 35-page judgment, Engoron sided with James, asserting that Trump had made clear false statements in official documents to obtain favorable terms with financial institutions.
Judge Arthur Engoron speaks during a hearing related to the civil suit of New York Attorney General Letitia James.REUTERS
Notably, Trump’s claims, such as his triplex penthouse in Trump Tower being 30,000 square feet when it is closer to 11,000, were also described by Engoron as “fraud” given their apparent contradictions.
However, the decision sparked outrage when Engoron, a Democrat who ran unopposed in the November 3, 2015 general election, valued Trump’s Mar-a-Lago Club resort at $18 million, ruling that the property was inflated by 2,500%.
He cited the Palm Beach Appraiser’s base valuation of $18 million to $28 million between 2011 and 2021, with industry sources saying it fails to account for fair market value. This valuation is a far cry from Trump’s 1985 purchase price of $10 million, $8 million less than the value declared by the judge today.
There are also comps nearby.
To put that in perspective, a 2-acre wooded lot at 1980 S. Ocean Blvd., just 5 minutes from Mar-a-Lago, is currently listed for $150 million. Mar-a-Lago, located at 1100 S. Ocean Blvd., shrinks this lot tenfold and operates as a commercial business with about 500 members as part of a golf club.
A 2-acre tree-lined lot 5 minutes from Mar-a-Lago is on the market for $150 million. Zillow
Also nearby: a 2.3-acre parcel at 1063/1071 N. Ocean Blvd., on the market for a sky-high $200 million.
Trump’s Mar-a-Lago estate has 20 acres.
Forbes has valued the property, which has 128 rooms, at approximately $160 million in 2018 following extensive renovations and an exclusive Palm Beach location on Billionaires’ Row. The property includes a 20,000-square-foot ballroom, five clay tennis courts and an expansive oceanfront pool.
And in the five years since then, Palm Beach real estate has only increased in value.
A 2.3-acre lot in Palm Beach, minutes from Mar-a-Lago, is listed for $200 million. Zillow
Nearby residential properties, less than half the size and lacking ocean frontage, command an average price of $40 million in today’s market.
There are also very prominent local purchases.
In March, Rush Limbaugh’s widow, Kathryn Adams Limbaugh, sold her husband’s old Palm Beach estate, on 2.7 acres, for $155 million.
Trump’s Mar-a-Lago is worth at least $300 million and it’s likely to increase exponentially after dissecting the entire estate. Getty ImagesTrump bought the 20-acre estate in 1985 for $10 million. TNS
And in 2013, hedge funder Ken Griffin paid $129.6 million for four parcels in the area.
In addition to the decision, Engoron revoked the New York “certificate of business” held by the Trump Organization and any other New York-based businesses associated with the former commander-in-chief or his family. He further mandated an independent third party to oversee the “dissolution of the revoked LLC.”
In response, Trump denounced it as a “Witch Hunt.”
Trump issued a lengthy statement, saying, “It is a great company that has been defamed and maligned by this politically motivated Witch Hunt. It is very unfair, and I am asking for help from the highest court in New York State, or the Federal System, to intercede. THIS IS NOT AMERICA.”
Last year, Engoron referred to Trump as “just a bad guy” in a scathing rebuke to a lawyer arguing that the former president was unfairly singled out for investigation by James.
“If Miss James has a problem with it, OK, that’s not in my understanding [of] unlawful discrimination. He’s just the bad guy he should be going after as the state’s chief law enforcement officer.”
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Source: thtrangdai.edu.vn/en/
