Page 57 - Trump University Commercial Real Estate 101

Ho w to Read a Market

D ON ’ T LISTEN TO THE CROWD

Today, Grand Central Station in New York City is beautiful. However,
in the 1970s, it was a different situation altogether. The area was in the
midst of serious decay. It was crummy, run - down, and a destination
point for no one except those entering and leaving the city as quickly
as they possibly could.
The old Commodore Hotel next to Grand Central was in big trou-
ble. It was a disgraceful sight. I knew that the neighborhood was ready
for a change, and acquiring the Commodore Hotel became a quest.
Even my father couldn ’ t believe I was serious. He said “ buying the
Commodore at a time when even the Chrysler Building is in bank-
ruptcy is like fi ghting for a seat on the Titanic. ”
I had to structure an extremely complex deal with other interested
parties. It took several years to negotiate everything. I still needed to
get fi nancing. I hired a real estate broker who had a lot of experience,
and who was in his sixties. I was only 27 years old at the time, and
having a mature, accomplished presence with me worked to my
advantage.
I bought the Commodore for $ 10 million, with $ 6 million going to
the city for back taxes. I then sold the hotel to the city for one dollar,
and they leased it back to me for 99 years.
Now, people and critics love this building. It started the revitaliza-
tion of the Grand Central area and opened in 1980 to great success.
Today, it ’ s a hub of New York City — thriving and beautiful.

Donald Trump with Meredith McIver, Never Give Up (John Wiley & Sons, 2008,
page 62).

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