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TR U M P STR A TEGI ES FO R R E A L ESTA TE

which contains luxury condominium units, would top the structure
starting at the 28th floor and rising to the penthouse on the 68th
floor. The views were enhanced by increasing ceiling heights, in-
stalling oversize windows, and using the jagged facade to create
multiple corners with windows facing different directions. By
adding a luxurious health club, fitness room, and other amenities,
Trump Tower achieved the highest prices per square foot ever re-
ceived for condominium units in New York City at the time it was
completed. Now that you have a sense of the finished product, let’s
look at how Trump conceived and executed this fabulous real estate
development, and how it paid off for him.
Before Trump Tower was built, the site was owned by the parent
company of Bonwit Teller, a fast-fading department store chain. The
building was an Art Deco box-like building that had long outlived its
usefulness but the location, on 5th Avenue in midtown Manhattan,
was one of the most prestigious in the entire city of New York. Al-
though the purchase price for the property was high, Trump be-
lieved that the location warranted it and a huge profit would be his
if he could maximize the site’s potential. Trump believed the ground
floor of a new building and the three floors above it could bring
very high rents (in excess of $500 per square foot) from major re-
tailers who coveted a 5th Avenue location for a flagship store. He
also believed that the high floors with their great views were ideal
for the creation of luxury condominium units that would sell for high
prices. The middle floors were the problem area that required inno-
vative thinking to obtain maximum benefit from their use and make
the investment work. Trump decided to use them as office space
knowing full well that it would take creative marketing to get the
rents he desired. Thus, Trump’s vision of a three-tiered, multi-use
condominium building was born. In the late 1970s, a development
of this type was very unusual.

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