Bargain hunters are taking advantage of falling prices for Trump-branded real estate
The Trump brand was formerly synonymous with wealth and status. But today, buildings with Trump emblazoned across them have become a lure for bargain hunters looking for discount prices on luxury real estate.
And now, you can get a good deal on a luxury condo in Chicago if you don't mind living in Trump Tower.
Luxury apartments in Chicago for a discount
Condos in Chicago’s Trump International Hotel and Tower come with luxury accommodations and many amenities, including an indoor pool, health club, spa, river views, and a restaurant. The studio and one through three-bedroom units boast hardwood floors, stone spa bathrooms, and spacious floor plans.
However, not everyone wants to live in a tower named after the "most unpopular president since Ford." After allegedly inciting an insurrection on the US Capitol Building, Trump left office with a final public approval rating of just 29%, according to Pew Research.
His controversial persona has led to plummeting prices in his properties throughout the country.
According to an Associated Press Review, in the past 15 years, prices for condos and hotel rooms have dropped by one-third or more in Trump-owned properties.
Gail Lissner, a managing director at the consulting firm Integra Realty Resources, said that condos in Chicago’s Trump Tower have fallen over 34% in the years since Trump was elected president.
While prices have dropped somewhat overall for luxury condos, similar units in Chicago have experienced much less of a rate drop, only 6% for 18 similar condo buildings in the area.
"You can live in a luxury building for a non-luxury price tag," said Lissner.
Prices have dropped across the nation
The price drops are not only happening in Chicago. In Las Vegas, Lane Blue recently bought a studio apartment in Trump's Las Vegas tower for $160,500. The unit sold at $350,000 less than the seller paid in 2008. Blue said it was his second purchase in the building, and he is considering more. “They’re giving them away," said Blue.
And in Hawaii, a Trump hotel room with an ocean view of Waikiki Beach sold for $505,000, over $300,000 less than the seller paid.
Manhattan has experienced even more steep cuts in prices. Trump buildings in the city have lost their premium rankings for the first time. According to research from CityRealty, a luxury condo in Manhattan is now selling at a lower price per square foot than the average for all condo buildings.
Some buildings have removed the Trump name completely
In Chicago, there has been some pushback from residents to remove the Trump name from the buildings. City leaders attempted to get the Trump name removed from 401 N. Wabash several years ago, but failed to do so. Now Alderman Gilbert Villegas has introduced an ordinance to remove the sign from the tower.
And in Manhattan, Toronto, and Panama, hotels, and condos that paid a premium price to use the Trump name before his presidency, have been removing his name from their buildings.
Though Trump-branded properties may be hard hit nationwide, there are still some places in America where the Trump name is perhaps not viewed quite as negatively.
In Florida, according to Barrons, real estate agents in Sunny Isles have reported no requests from residents to rename the properties. However, recent closings show that prices have dropped there as well.
Buyers hope to make a deal
For now, bargain hunters are sweeping in to pick up discounted rates on luxury properties with the hope that in time, the name either won't be as controversial or will have been rebranded.
A New York Banker recently bought a Manhattan condo for $2.1 million, and he's anticipating someday, the name won't matter as much, “Ten years from now people will forget about him."