daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine | posting guidelines

Go Back   SkyscraperCity > World Development News Forums > General Urban Developments > DN Archives



Global Announcement

As a general reminder, please respect others and respect copyrights. Go here to familiarize yourself with our posting policy.


Reply

 
Thread Tools
Old January 14th, 2007, 05:16 AM   #201
Muse
Supernature
 
Muse's Avatar
 
Join Date: Sep 2002
Location: Sydney
Posts: 8,590
Likes (Received): 32

Fantastic pic Ken L. When Trump tops out, it's going to trump that view *boom tish*
Muse no está en línea   Reply With Quote

Sponsored Links
Old January 14th, 2007, 05:28 AM   #202
harvesterofsorrows
BANNED
 
Join Date: Nov 2005
Location: Chicago
Posts: 642
Likes (Received): 113

Yep, that's a raw pic.
harvesterofsorrows no está en línea   Reply With Quote
Old January 16th, 2007, 03:37 PM   #203
BVictor1
Chicago's #1 Fan
 
Join Date: Jun 2004
Location: Chicago
Posts: 2,186
Likes (Received): 882

http://www.chicagotribune.com/busine...l=chi-news-hed

Trump undoing deals
Condo buyers who got discounts in friends/family program told contracts voided

By Susan Diesenhouse
Tribune staff reporter
Published January 16, 2007



The letter from Donald Trump's lawyer didn't say, "You're fired." But it said something close.

Back in 2003, when Trump was planning his downtown residential tower, he gave about 40 insiders an attractive deal: They could sign contracts to buy condominiums in the Trump International Hotel & Tower at a discount. In some cases they agreed to pay about $500 a square foot.

But units in the building, still under construction, are on the market for as much as $1,343 a square foot. That would represent a tidy profit for these early purchasers. Except that Trump has notified them that their agreements are "null and void."

That's not as catchy as Trump's stock phrase on "The Apprentice," but it has been enough to upset some would-be purchasers who participated in what was called a "friends and family" sales program.

Since the summer, Trump has notified this special class of buyers, many with a professional connection to the project, that their deals have been canceled. If they want to close on units in the tower, now due for completion in 2009, they must pay closer to current asking prices.

Some real estate experts strained to cite a precedent for a developer offering contracts at a preconstruction discount to get the ball rolling on a project and then canceling the deals later as selling prices rose.

"I never heard of this before," said Richard Peiser, a professor of real estate development at the Harvard Graduate School of Design.

If a developer asks firms they work with to buy units "to help a project appear successful and achieve certain hurdles," Peiser said, "it would seem the buyer should enjoy the upside."

"In my experience it would be very unusual for a developer to get out of a purchase-and-sale contract because prices have gone up," said Kevin Ahearn, president of Boston-based Otis & Ahearn Real Estate, which sells luxury residences.

One of Trump's unhappy "friends" is Judi Diamond-Falk, an Evanston architect who designed an early sales office for him here.

"Anyone who buys preconstruction gets a financial benefit for the risk they take," Diamond-Falk said.

Trump also benefited from the early sales, she added, because he "could say that a certain percentage of units are presold to get his financing and tell the public a certain percentage was presold. People didn't know they were friends and family sales."

In April 2003, the Diamond-Falks paid about 10 percent less than the asking price, put down an initial deposit of 5 percent rather than the then-required 15 percent and would have been permitted to sell their unit before they closed on it, Diamond-Falk said.

But Trump said in an interview Monday that the sales contract included wording that allows him to raise the prices for the friends and family units. Neither he nor the Diamond-Falks would provide the Tribune with a complete copy of the contract.

In June, Trump attorney Jason Greenblatt wrote to the Diamond-Falks to notify them that the sale was "null and void," citing "Paragraph 12 (b)" of the contract. That clause refers very generally to "matters beyond [the] seller's reasonable control" as a reason for the developer to default on the contract.

This clause "is only part of our rights and remedies," said Greenblatt. The friends and family sales "were a gift" to a small group, he said.

"From Day One, they understood that if the project was successful, the windfall would go to Mr. Trump," he said.

About 42 units were sold to friends and family. Contracts were renegotiated or terminated on at least 27 units, Greenblatt said. Two or three buyers balked at the new deal, he said, and a dozen still must be contacted.

Since 2003, of the 472 residential condos available, 373 have been sold. Of the 286 condo-hotel units, 220 have been sold, said Tere Proctor, Trump's sales director here.

As of November, residential asking prices ranged from $998 to $1,343 a square foot, compared with $400 to $750 in September 2003, according to Appraisal Research Counselors.

Most of the sales occurred by January 2005, said Jim Kutill, a vice president at Appraisal Research.

In the past two years the slowdown in the residential market has affected the approximately $775 million tower, Trump acknowledged. About 21 percent of the residential units remain unsold, Proctor said. At the same time, construction costs have skyrocketed.

Trump said one reason for canceling the friends and families contracts is to "have more income to handle potentially higher construction costs."

"This job has become a tremendous success because of me," Trump added. "Everyone knows, with a friends and family program, if a job is very successful, people have clauses whereby you renegotiate or terminate."

Of these early buyers also employed to work on the tower, he noted, "Don't feel bad for them. I paid them many millions of dollars in fees."

- - -

Trump giveth and taketh away

The "Friends/Family Sales Program" allowed key people who participated in the Trump tower project to purchase one traditional condo or hotel condo unit at 10 percent below the initial sales prices. An initial deposit of 5 percent was required, in contrast with a 15 percent deposit others had to put down.

"As we anticipate raising prices periodically throughout the pre- and post-construction period, this opportunity would become increasingly more worthwhile with each price increase," says a Sept. 24, 2003, letter from the Trump Organization and Koenig & Strey GMAC Real Estate, the sales agent. Purchasers could "flip" their units, or assign their purchase agreement, to any third party at any time after construction began, according to the letter.

Jason Greenblatt, a New York lawyer representing the Trump Organization, has sent letters telling purchasers their purchase agreements are null and void "in accordance with our rights under the contract, including, without limitation, paragraph 12 (b)" (cited below):

Paragraph 12 (b): If seller defaults on any of seller's covenants or obligations hereunder, and such default is caused by matters beyond seller's reasonable control, then purchaser's sole and exclusive remedy ... shall be a refund of purchase's earnest money deposit and interest which may have accrued thereon to which purchaser is entitled pursuant to Paragraph 2 hereof and all payments theretofore made by purchaser. Upon refund to purchaser of said earnest money and payment of interest thereon, if any, and refund to purchaser of other amounts paid by purchaser, this purchase agreement shall be thereupon null and void with no further liabilities of either party hereto.

----------

[email protected]



Copyright © 2007, Chicago Tribune
BVictor1 no está en línea   Reply With Quote
Old January 16th, 2007, 05:59 PM   #204
harvesterofsorrows
BANNED
 
Join Date: Nov 2005
Location: Chicago
Posts: 642
Likes (Received): 113

Owned.
harvesterofsorrows no está en línea   Reply With Quote
Old January 16th, 2007, 11:03 PM   #205
zerokarma
Registered User
 
Join Date: May 2005
Location: Toronto
Posts: 1,511
Likes (Received): 12

That's pretty lame....
__________________
.... Trump Tower Toronto .............. Costa Rica Photos 1, Costa Rica Photos 2
.... if you build it they will come ........ St. Martin/St. Maarten Photos, Aruba Photos
.... www.trumptowertoronto.com ....... St. Lucia Photos, My Complete Photo Album
zerokarma no está en línea   Reply With Quote
Old January 17th, 2007, 03:33 AM   #206
Superfish
Registered User
 
Join Date: Aug 2006
Posts: 163
Likes (Received): 2

"This job has become a tremendous success because of me," Trump added.

What a self centered bastard.
Superfish no está en línea   Reply With Quote
Old January 17th, 2007, 08:40 AM   #207
p5archit
Registered User
 
Join Date: Feb 2003
Location: Toronto, Vienna, Amsterdam
Posts: 533
Likes (Received): 1

Self-centered is right! How much is Trump even involved with this property? Is it just his name? I know that he has taken a hands-off approach with regards to the one in Toronto- not to mention that he is barely even investing money in it - another company is ponying up all the dough. Later he can say he paid millions of dollars to people to complete his project and he should receive praise for his brilliance when he really did close to nothing..
What a complete *******!

No offense to Chicago or the fans of the tower- I hope it gets built, but the guy certainly knows how to turn people off!!

p5
__________________
..unc!

Last edited by p5archit; January 17th, 2007 at 08:45 AM. Reason: reason for editing:
p5archit no está en línea   Reply With Quote
Old January 17th, 2007, 09:08 PM   #208
TroyBoy
Registered User
 
TroyBoy's Avatar
 
Join Date: Jan 2006
Posts: 778
Likes (Received): 15

I think this one is one of his most he's actully doing something. Didnt a winner of apperntace is in charge of this?
__________________
OMG!!! ACH NEIN!!! DER ERLKONIG KOMMET
I GET HIGH OFF OF BEING HIGH
TroyBoy no está en línea   Reply With Quote
Old January 17th, 2007, 11:00 PM   #209
SkyView
Registered User
 
SkyView's Avatar
 
Join Date: Mar 2005
Posts: 603
Likes (Received): 13

I really do hope his next project becomes a financial nightmare.
What a jerk !
SkyView no está en línea   Reply With Quote
Old January 18th, 2007, 03:12 AM   #210
spyguy
Expert
 
spyguy's Avatar
 
Join Date: Apr 2005
Location: Chicago
Posts: 6,916
Likes (Received): 97

^Which could be in Chicago as there have been rumors for a while that he's looking to do a second tower somewhere else in the city.
spyguy no está en línea   Reply With Quote
Old January 18th, 2007, 03:36 PM   #211
globill
Registered User
 
globill's Avatar
 
Join Date: Dec 2005
Location: I'm going to Washington to serve the people of this country.
Posts: 1,739
Likes (Received): 8

Frankly, I was never too jazzed about the Donald coming to Chicago. I pray the Spire casts a shadow on his ego.
__________________
"in my little opinion it does matter what fairy tales some small time senator says to get elected, how fast he drops his associates that may harm him, and what is really behind it." nygirl

"I told you what I thought about that when I said I do not trust Obama and I probably never will. He hasnn't proven anything to me or you yet but he has flapped his lips plenty. And that I guess, is enough for some of you smarties in here." nygirl
globill no está en línea   Reply With Quote
Old January 18th, 2007, 11:33 PM   #212
Skyscrapercitizen
TIMBY
 
Skyscrapercitizen's Avatar
 
Join Date: Sep 2002
Location: Rotterdam
Posts: 33,025
Likes (Received): 5426

Jerk or not, he's welcome to build a 200m+ tower in Rotterdam.
__________________
Tower In My BackYard!
Skyscrapercitizen no está en línea   Reply With Quote
Old January 19th, 2007, 02:34 AM   #213
SkyBridge
a.k.a. Sequentia
 
SkyBridge's Avatar
 
Join Date: Feb 2006
Location: Antwerp
Posts: 20,770
Likes (Received): 1845

Agree with that last comment. Or, we are willing to 'adopt' this tower!
__________________
The pain was the world,
And I could not live outside it.
SkyBridge no está en línea   Reply With Quote
Old January 19th, 2007, 03:11 AM   #214
krull
In Time
 
krull's Avatar
 
Join Date: Oct 2005
Location: New York City
Posts: 3,072
Likes (Received): 58

Quote:
Originally Posted by Ken L. View Post
A little different perspective. This was taken from the John Hancock observatory looking south, the Trump building is dead center in the picture. It's a bit tough to spot now, but not for long Taken Saturday 1-13-07


Nice shot! Can't wait to see the same shot in a couple of years!
krull no está en línea   Reply With Quote
Old January 20th, 2007, 01:58 AM   #215
spyguy
Expert
 
spyguy's Avatar
 
Join Date: Apr 2005
Location: Chicago
Posts: 6,916
Likes (Received): 97

I was just browsing flickr when I came across these photos.

All credit goes to crigsby77







Oh yeah, and the view
spyguy no está en línea   Reply With Quote
Old January 20th, 2007, 02:20 AM   #216
SNL
BANNED
 
SNL's Avatar
 
Join Date: Jun 2005
Posts: 427
Likes (Received): 23

the view is simply amazing.
SNL no está en línea   Reply With Quote
Old January 20th, 2007, 02:27 AM   #217
thryve
°°°°°°°°°°
 
Join Date: Mar 2005
Location: Toronto
Posts: 5,346
Likes (Received): 22

I hate Trump, and with good reason, but let me tell you this tower is growing on me.

Will the parking garage ramp always be so visible? That seems a bit "low-budg" to me, but it's sort of cool on the other hand.
thryve no está en línea   Reply With Quote
Old January 20th, 2007, 02:37 AM   #218
jogiba
Registered User
 
Join Date: Jul 2006
Posts: 264
Likes (Received): 434

"What Donald Trump has invented is a new kind of rich man. The man who has money, but is bereft of class. The man with a million bucks, but with impoverished manners. The man who lives in high society, but whose behavior is in the gutter.

Trump is also proof that one can be immensely rich but feel extremely poor. Nothing seems to fill this man up. All the money in the world will not grant him the self-esteem that has permanently eluded him, and for which he must compensate through boasting. Character, rather than money, is the real currency by which we are meant to purchase self-esteem.

Trump is a billionaire businessman. And yet you and I own him. We are his masters. He lives in our small pockets. Everything he does is calculated to impress us. If he buys a building, he needs us to know of it. If his show has high ratings he needs us to read of it. He does not crave our approval, he is utterly dependent on it. Amazing. To be worth billions, and still be the slave of the public. "
http://www.beliefnet.com/story/209/story_20961_1.html
jogiba no está en línea   Reply With Quote
Old January 20th, 2007, 02:38 AM   #219
thryve
°°°°°°°°°°
 
Join Date: Mar 2005
Location: Toronto
Posts: 5,346
Likes (Received): 22

Yeah, cuz he's just such a slave to society...
thryve no está en línea   Reply With Quote
Old January 20th, 2007, 02:40 AM   #220
spyguy
Expert
 
spyguy's Avatar
 
Join Date: Apr 2005
Location: Chicago
Posts: 6,916
Likes (Received): 97

Quote:
Originally Posted by thryve View Post
Will the parking garage ramp always be so visible? That seems a bit "low-budg" to me, but it's sort of cool on the other hand.
No, it will be clad as well I believe.

spyguy no está en línea   Reply With Quote


Reply

Tags
adrian smith, chicago, donald trump, trump, trump tower

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Related topics on SkyscraperCity


All times are GMT +2. The time now is 05:03 AM.


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2017, vBulletin Solutions Inc.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2017 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2017 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

Hosted by Blacksun, dedicated to this site too!
Forum server management by DaiTengu