The Trump Organization
|Type||Limited liability company|
725 Fifth Avenue
New York City, New York, U.S.
|Key people||Donald Trump (Chairman & CEO)|
|Services||Real Estate Development
The Trump Organization is a limited liability company conglomerate based in Trump Tower in Manhattan, New York. The organization owns, operates, and develops hotels, resorts, residential towers, and golf courses in different countries, as well as owning several pieces of high-end real estate in New York City. The organization also has a stake in Trump Entertainment Resorts, which owns and operates the Trump Taj Mahal, the Trump Plaza, and the Trump Marina casinos in Atlantic City, New Jersey. Together with NBC, the Trump Organization additionally owns the Miss USA, Miss Teen USA, and Miss Universe franchises.
The organization is owned and managed by the Trump family with Donald Trump as its CEO and three of his eldest children —Donald Trump, Jr., Ivanka Trump, and Eric Trump— serving as Executive Vice Presidents (EVP) within the organization.
Selected completed properties
- Trump World Tower 845 United Nations Plaza, New York City: In 2006, Forbes estimated "$290 million in profits and unrealized appreciation" going to Trump.
- Trump Tower 725 Fifth Ave, New York City: Trump owns the retail and office space on the lower half of this building. In 2006, it was valued at $318 million, less a $30 million mortgage.
- Personal Residence Trump Tower: Top 3 floors of Trump Tower with approximately 30,000 square feet (3,000 m²) of space; detailed in bronze, gold, and marble. Worth as much as $50 million, it is one of the most valuable apartments in New York City.
- AXA Financial Center 1290 Avenue of the Americas, New York City and 555 California Street, in San Francisco: When Trump was forced to sell a stake in the railyards on Manhattan's West Side, the Asian group to which he sold then sold much of the site for $1.76 billion. Trump ended up owning 30% of the two buildings. Based on the sales price, Trump's stake was valued at $486 million.
- The Trump Building at 40 Wall Street: Trump bought and renovated this building for $1 million in 1995. Although Trump claims it is worth $400 million, New York tax assessors value it at only $90 million. Trump has taken out a $160 million mortgage on this property to use for other investments. Forbes valued the property at $260 million in 2006.
- Trump Entertainment Resorts: This company presently owns two Trump branded casino resorts. After a long period of financial trouble, the company entered bankruptcy protection in 2001, 2004 and later in 2009 owning $1.2 billion in debts. In 2004, Trump agreed to invest $55 million cash in the new company and pay $16.4 million to the company's debtors. In return he holds a 29.16% stake in the new public company. This stake was worth approximately $171 million in October 2006. After the 2004 bankruptcy filing, the company changed its name from Trump Hotels & Casino Resorts to Trump Entertainment Resorts. The Trump branded casino resorts include the Trump Taj Mahal, Trump Plaza and at one time Trump Castle/Trump Marina, which was sold in bankruptcy court to Landry's Restaurants, Inc. on May 23, 2011 and renamed Golden Nuggett Atlantic City.
- Riverside South/Trump Place: Riverside South is currently the largest single private development in New York City. It's built by the Trump Organization, although financed by investors from Hong Kong and owned by the Hudson Waterfront Company. Trump contends that the property should have been sold for more than $3 billion and in 2006 sued the owners for selling without his consent, and sought $1 billion in damages. Forbes values his stake in the property at $170 million.
- Trump International Hotel and Tower Chicago: The entire project is valued at $1.2 billion ($112 million stake for Trump).
- Trump Hotel Las Vegas: This is a joint development with fellow Forbes 400 member, Phil Ruffin, and Jack Wishna. Trump's stake is valued at $162 million.
- Trump International Hotel and Tower New York: Trump provided his name and expertise to the building's owner (GE) during the building's re-development in 1994 for a fee totaling $40 million ($25 million for project management and $15 million in incentives deriving from the condo sales). Forbes values Trump's stake at $12 million.
- Trump Park Avenue Park Avenue & 59th Street: It is valued at $142 million.
- Nike Store: The NikeTown store is located in Trump Tower. It is valued at $120 million.
- Palm Beach estate: 43,000 square feet (4,000 m²) on a large oceanfront lot in Palm Beach. Trump purchased this property for $40 million at a bankruptcy auction in 2004. Trump sold the property for $100 million in June 2008, making it the most expensive house ever sold in the United States. (The previous record is $70 million for Ron Perelman's Palm Beach estate in 2004.). Forbes values his stake in the property for $43 million.
- Mar-A-Lago Palm Beach, Florida: Most of this estate has been converted into a private club. This landmark property, according to Trump, has received bids near $200,000,000. However, Forbes magazine does not take into account either of Trump's large vacation residences (Mar-A-Lago or his 213-acre (0.86 km2) spread near Bedford, NY in Westchester County, NY) for its valuation of his wealth.
Trump currently owns five golf courses in the United States: Trump National Golf Club in Briarcliff Manor, New York, Trump National Golf Club in Bedminster, New Jersey, Trump International Golf Club in West Palm Beach, Florida, Trump National Golf Club Charlotte in Mooresville, NC, and Trump National Golf Club in Los Angeles. Trump is also building Trump International Golf Club in the Caribbean island of Canouan Island, The Grenadines. The development will include Trump Club Privee, a Monte Carlo inspired casino.
In 2006 Trump purchased a 1,400-acre (5.7 km2) plot just north of Aberdeen at Menie (Balmedie), Scotland, with the intention of turning it into a £1 billion golf resort and "the world's best golf course" capable of hosting world class events such as The Open Championship. There has been opposition from many people both locally and in other parts of Scotland and the UK, and negative reaction from a number of environmental groups, but the project continues.
The development plan for Trump International Golf Links, Scotland (TIGLS) included two 18-hole courses, a 5-star hotel, golf villas, holiday homes, and a golf academy. It was strongly supported by local business leaders but met opposition from local residents, campaigners and environmental groups anxious to preserve the 4,000-year-old sand dunes that are designated an SSSI (Site of Special Scientific Interest). Though recommended for approval by Aberdeenshire Council officials the development was initially rejected by a local subcommittee of elected members. However it was subsequently approved following a controversial planning inquiry ordered by the Scottish Government in June 2008, at which Trump personally testified. Work began on the site in July 2010.
In March 2009 the Trump Organisation had asked the Council to use its powers of compulsory purchase to acquire some areas of land at Balmedie not forming part of the original TIGLS site for which planning permission already existed. These included four family-owned properties. In response local campaigners established Tripping Up Trump, a movement aimed at protecting the families at Menie being threatened with eviction. When it emerged at the end of January 2011 that Queen guitarist Brian May had agreed to the use of the band's hit Bohemian Rhapsody in a film highlighting the plight of the families, Trump appeared to deny in a media statement that there had ever been an eviction threat, declaring "we have no interest in compulsory purchase and have never applied for it."
In September 2011 the Trump Organisation lodged a formal objection to the proposed construction of a wind farm off the Aberdeenshire coast not far from the site of the new hotel and luxury housing. Donald Trump also wrote personally to the First Minister of Scotland protesting mainly on aesthetic grounds at the proposed erection of offshore wind turbines, which he characterised as 'ugly'. His letter claimed that he was protesting on behalf of the Scottish people, 'not... merely for the benefit of Trump International Golf Links.' Donald Trump is not understood to have made any previous objection to any of the large number of other wind farms that have been built in rural locations in Scotland over recent years.
In 2011 a documentary directed by Anthony Baxter called You've Been Trumped was released, showing the situation of local residents adversely affected by the resort's construction. It contains footage of, among others, economists who query the benefits claimed for the local economy, environmentalists critical of the damage allegedly caused by the development and golfers who voice doubts about claims made for the resort by the Trump Organisation. It also shows Anthony Baxter being arrested while filming by a Grampian Police officer; he was later released without charge. Baxter has been quoted as saying that Trump branded the film 'boring' and Baxter himself 'a fraud'. However, the film has won several awards including the Hamptons Film Festival Social Justice Award and the Maysles Brothers Award for best documentary at the Denver Film Festival.
Real estate licensing
Many developers pay Donald Trump to market their properties and be the public face for their projects. For that reason, Trump does not own many of the buildings that display his name. According to Forbes, this portion of Trump's empire, actually run by his children, is by far his most valuable with a valuation of $562 million. According to Forbes, there were 33 licensing projects under development including seven "condo hotels" (i.e. The seven Trump International Hotel and Tower developments). Some examples are:
- Trump Palace: 200 East 69th Street, New York, NY.
- Trump Parc and Trump Parc East: Two adjoining buildings on Central Park South on the southwest corner of The Avenue of the Americas. Trump Parc East is a 14-story apartment building and Trump Parc (the former Barbizon Plaza Hotel) is a 38-story condominium building.
- Trump Plaza: 167 East 61st Street, New York, NY (39-story, Y-shaped plan condominium building on the Upper East Side)
- 610 Park Avenue (Old Mayfair Hotel): Trump is helping with the construction and development of this property for Colony Capital.
- Trump SoHo: Hotel Condominium: A partnership with Bayrock Group to build a 42 story building in Soho.
- New York City suburbs:
- Trump Plaza (Jersey City): The project includes New Jersey's two tallest residential towers and costs about $450 million. The 55-story tower will have 445 condos, and the 50-story tower will have 417.
- Trump Plaza (New Rochelle): A 39-story luxury residence and hotel with retail space that is currently under construction in Westchester County, NY with developer Louis R. Cappelli.
- Trump Tower at City Center: A 35-story condominium apartment building built in Westchester County, New York with developer Louis R. Cappelli.
- Trump Parc Stamford: A development in Stamford, Connecticut with F. D. Rich Company and Louis R. Cappelli.
- Trump Park Residences: A development in Shrub Oak, NY with Louis Cappelli.
- Trump International Hotel and Tower Fort Lauderdale: Anticipated completion is 2007.
- Trump Towers Sunny Isles Beach (Sunny Isles Beach, Florida): An oceanfront condominium development consisting of three 271-unit towers with developer Dezer Properties.
- Trump Grande Ocean Resort and Residences: A three-building oceanfront enclave consisting of the Trump International Beach Resort and two residential condominium towers, the Trump Palace and Trump Royale, with developer Dezer Properties.
- Trump Hollywood: A 40-story building on Hollywood Beach, Florida with Jorge M. Pérez.
- Trump Tower (Palm Beach): Will be a 23-story residential condominium development.
- Other domestic:
- Trump Towers Atlanta: project foreclosed and cancelled.
- Trump Charlotte, project canceled. Shortly after, Trump bought a former golf course in Charlotte, which he now owns and operates.
- Trump Tower (Philadelphia): empty lot-filed for bankruptcy as of January 2013 to prevent imminent forclousure.http://www.centercityteam.com/2013/01/08/trump-tower-philadelphia-project-files-bankruptcy-to-avoid-foreclosure/
- Trump International Hotel and Tower Waikiki Beach Walk: Completed in November 2009 with 462 hotel-condominium units.
- Trump International Hotel and Tower: New Orleans (Project slated to begin construction during the first quarter of 2007). "Declared dead in July 2011 after the location land was foreclosed on and sold at auction".
- Trump Towers Istanbul (TURKEY) http://www.trumpistanbul.com.tr
- Trump World Seoul: Which Trump received a licensing fee of $5 million to lend his name.
- Trump International Hotel and Tower Toronto
- The Palm Trump International Hotel and Tower Dubai
- Trump Ocean Club International Hotel and Tower Panama
- Trump Ocean Resort Baja Mexico was a planned 3 tower, 25 story, 526 unit hotel condominium, San Diego. This project collapsed due to the project's failure to secure financing.
- Trump at Cap Cana will be located in Punta Cana, Dominican Republic.
- Trump Tower Manila: The brand name and mark under license. Anticipated completion is to be announced.
Other business ventures
Other investments include a 17.2% stake in Parker Adnan, Inc. (formerly AdnanCo Group), a Bermuda-based financial services holdings company. In late 2003, Trump, along with his siblings, sold their late father's real estate empire to a group of investors that included Bain Capital, Kohlberg Kravis Roberts, and LamboNuni Bank reportedly for $600 million. Donald Trump's 1/3 share was $200 million, which he later used to finance Trump Casino & Resorts.
Having carved out a niche for the Trump brand in the real estate business, Trump has since then moved on to establish the Trump name and brand in a multitude of other industries and products. Trump has succeeded in marketing the Trump name on a large number of products, including Trump Financial (a mortgage firm), Trump Sales and Leasing (residential sales), The Trump Entrepreneur Initiative (a business education company, formerly called the Trump University), Trump Restaurants (Located in Trump Tower and consisting of Trump Buffet, Trump Catering, Trump Ice Cream Parlor, and Trump Bar), GoTrump (an online travel website), Donald J. Trump Signature Collection (a line of menswear, men's accessories, and watches), Donald Trump The Fragrance (2004), Trump Ice bottled water, Trump Magazine, Trump Golf, Trump Chocolate, Trump home (home furnishings), Trump Productions (a television production company), Trump Institute, Trump The Game (1989 Board Game), Donald Trump's Real Estate Tycoon (a business simulation game), Trump Books, Trump Model Management, Trump Shuttle, Trump Ice, Trump Mortgage, Trump Vodka, and Trump Steaks. In addition, Trump reportedly receives $1.5 million for each one-hour presentation he does for The Learning Annex.
- "What is Trump Worth?". Forbes. 2006-09-21.
- "Donald Trump plans £300m "golfing paradise" for rural Scotland". Wikinews. Retrieved 2007-02-20.
- "News.bbc.co.uk, Trump £1bn golf inquiry tees off". BBC News. 2008-06-10. Retrieved 2011-04-21.
- "Trump's £1 billion golf complex wins planners' approval". Retrieved 2007-10-24.
- "Trump International Golf Links, Aberdeen, Scotland : News and Events".
- "Aberdeenshire Council's position: Compulsory Purchase Orders (News Release) 22 July 2009". Aberdeenshire.gov.uk. 2009-07-22. Retrieved 2011-04-21.
- Crighton, Ryan (2011-01-31). "Press & Journal "Trump lifts threat of eviction at resort site" Ryan Crighton 31 Jan 2011". Pressandjournal.co.uk. Retrieved 2011-04-21.
- "Donald Trump's wind farm fight 'for Scotland's benefit'". BBC News. 2011-09-15.
- Ward, Bob (2011-09-14). "You've Been Trumped: film reveals tycoon's ruthless efforts to build Scottish golf resort – Bob Ward". The Guardian (London).
- Collins, Daniel (2011-10-21). "Donald Trump Tortures The Weak". Huffington Post.
- Frangos, Alex (May 18, 2009). "Trump on Trump: Testimony Offers Glimpse of How He Values His Empire: Worth Rises, Falls 'With Markets and Attitudes And With Feelings, Even My Own Feeling'.". The Wall Street Journal. Retrieved April 14, 2011. Unknown parameter
- "That's rich! The Donald cash advice costs 1.5m". New York: New York Daily News. October 23, 2005. Retrieved 2008-07-04.[dead link]