Page 135 - 2

T HE T RUMP T OUCH

cause of the prestige and the aura associated with the celebrities
and the rich people who drive a Rolls. People like to communicate
the fact that they have money without specifically broadcasting it.
They accomplish this by driving a Rolls Royce, and also by living in
Trump Tower. If you own a Rolls Royce, people think you’re rich.
In the same way, ownership of a unit in Trump Tower equates with
being wealthy. People know that owners of apartments in Trump
Tower pay up to $20 million for the privilege—a price significantly
higher than similarly sized apartments in the neighborhood. They
recognize the value of buying ownership of a unit in a Trump build-
ing. With such ownership comes the privacy, exclusivity, and the
amenities found in a five-star building. As an added bonus, they get
what has come to be referred to as the “Trump Touch.”
In typical pioneering style, Trump embraced the challenge of
creating a product for a market that nobody else dared to enter.
Trump believed the market existed, and he was confident that the
wealthy would flock to his spectacular building. ...He even pro-
claimed, “I will sell residential units at higher prices than anyone
else. I will sell units at $1,000 per square foot while owners of similar
units elsewhere struggle to get $600 per square foot.” Some said that
Trump was crazy and his outlandish predictions would never become
reality. Trump ended up selling units for $1,000, $1,200, sometimes
$1,500 a square foot. The same unit without the Trump name
wouldn’t sell anywhere near that price; it just wouldn’t exhibit the
same pizzazz. It wouldn’t have snob appeal.
The combination of a desirable location for retail space, offices,
and luxury apartments in the same building made Trump Tower a
financial success because it maximized the value of each level of the
building. Normally, a mix of commercial, office, and residential isn’t
financially feasible. But by combining a great location with incredi-
ble views and stunning architecture, Trump firmly believed he could
get higher rents and selling prices per square foot in Trump Tower
than anyone else was getting in the city. And he did!
113