The Republican presidential candidate, Donald Trump, has owned several New York real estate properties during the course of his decades-long career, but the Plaza Hotel seems to be the most iconic of all. Here are some facts about how precisely the famed Plaza deal went down and how he ultimately lost it.
Donald Trump negotiated with Tom Barrack for the deal of Plaza Hotel, who represented Plaza Hotel owner and Texas billionaire, Robert Bass, in just 30 minutes. The group expected the hotel to cost around $500 million at auction.
Trump offered $407.5 million for the hotel, which was a tremendous amount at the time. But Trump said: "It wasn't purely about the bottom line." So there was no contingency deal. A tenant named Fannie Lowenstein stood for Trump's plans for a condo conversion.
To get rid of Lowenstein, she was given a room as a rent-free for life in the Plaza, almost 10 times larger than her studio. The huge studio is said to have a view of Central Park, and also comes with new furniture and a Steinway piano. Trump handled almost all of the negotiations by himself. During the first year into Trump's ownership, the Plaza lost $74 million, as reported by the Real Deal.
At this time, Trump becomes indebted by $900 million via personally guaranteeing building loans. Nearly all of Trump's properties have been involved including the Plaza, his yacht and his jet, in exchange for more favorable terms on his personal guarantees.
After Trump bought the Plaza, it came under bankruptcy protection. After seven years, the Plaza Hotel was sold for $325 million to Prince Alwaleed bin Talal of Saudi Arabia and CDL Hotels International of Singapore.
According to the New York Daily News, Donald Trump, who is currently eyeing the White House presidency, has also been showboating his alleged net worth of $10 billion for weeks. This might be true as the real estate mogul has a string of buildings and mansions, many of it in New York and others across the country.
His vast wealth could give his White House ambition a run for its money.
