A New York judge’s Tuesday ruling valuing Donald Trump’s sprawling Florida estate at $18 million has stumped industry experts.
In his verdict, Manhattan Supreme Court Justice Arthur Engoron issued an explosive ruling that former President Donald Trump committed fraud by inflating the value of his wealth, with details including the monetary value associated with Mar- a-Lake in Palm Beach.
This decision, which was made without a jury, has caused a stir in political (and real estate) circles, especially at the property’s $18 million base value.
A prominent Palm Beach real estate broker, speaking on condition of anonymity, told The Post: “It is completely delusional to think that a property is only worth $18 million.”
Judge Engoron’s verdict holds Trump, 77, along with his family and his business empire, the Trump Organization, responsible for fraud, a central allegation in New York Attorney General Letitia James’ lawsuit against the defendants. .
In a 35-page ruling, Judge Engoron sided with James and stated that Trump had made unequivocally false statements in official documents to obtain favorable terms with financial institutions.
Notably, Engoron also described Trump’s claims, such as that his triplex penthouse in Trump Tower was 30,000 square feet when it was closer to 11,000, as “fraudulent” given their significant discrepancies.
Judge Arthur Engoron speaks during a hearing related to New York Attorney General Letitia James’ civil lawsuit.REUTERS
However, the ruling drew attention when Judge Engoron, a Democrat who ran unopposed in the Nov. 3, 2015, general election, assessed the value of Trump’s prized Mar-a-Lago Club resort at $18 million, ruling that the property was inflated by 2,500%.
It cited a base valuation for Palm Beach Assessor that ranged between $18 million and $28 million between 2011 and 2021, and industry sources said it does not take fair market value into account. This valuation is a far cry from Trump’s 1985 purchase price of $10 million, $8 million less than what the judge declared it worth today.
The Palm Beach industry expert added: “If that property were on the market today, I would list it at around $300 million, minimum…at least. It also has a separate golf course just a few minutes away.”
There are also competitions nearby.
To put it in perspective, a 2-acre wooded lot at 1980 S. Ocean Blvd., just 5 minutes from Mar-a-Lago, is currently listed for $150 million. Mar-a-Lago, located at 1100 S. Ocean Blvd., dwarfs this lot tenfold and operates as a commercial enterprise with about 500 members as part of the golf club.
A tree-filled 2-acre lot located 5 minutes from Mar-a-Lago is for sale for $150 million. Zillow
Also nearby: a 2.3-acre parcel at 1063/1071 N. Ocean Blvd., on the market for a sky-high $200 million.
Trump’s Mar-a-Lago estate has 20 acres.
Forbes had valued the property, with 128 rooms, at approximately $160 million in 2018 following extensive renovations and its exclusive Palm Beach location on Billionaires’ Row. The property includes a 20,000-square-foot ballroom, five clay tennis courts and an extensive oceanfront pool.
And in the five years since, Palm Beach property values have only skyrocketed.
A 2.3-acre parcel in Palm Beach, minutes from Mar-a-Lago, is selling for $200 million. Zillow
Nearby residential properties, less than half the size and without ocean frontage, have an average price of $40 million in the current market.
There have also been very notable local purchases.
In March, Rush Limbaugh’s widow, Kathryn Adams Limbaugh, sold her husband’s former 2.7-acre Palm Beach compound for $155 million.
Trump’s Mar-a-Lago is worth at least $300 million, and that value is likely to increase exponentially after analyzing the entire estate. Getty ImagesTrump bought the 20-acre property in 1985 for $10 million. TNS
And in 2013, hedge funder Ken Griffin paid $129.6 million for four parcels in the area.
In addition to the verdict, Judge Engoron revoked New York “business certificates” held by the Trump Organization and any other New York-based companies associated with the former commander in chief or his family. Additionally, he ordered an independent third party to oversee the “dissolution of the terminated LLCs.”
In response, Trump denounced it as a “witch hunt.”
Trump issued a lengthy statement saying, “This is a great company that has been slandered and defamed by this politically motivated witch hunt. It is very unfair and I ask for the help of the highest courts of the state of New York, or the Federal System, to intercede. THIS IS NOT AMERICA.”
Last year, Judge Engoron referred to Trump as “just a bad guy,” in a harsh rebuke of a lawyer who argued that Attorney General James was unfairly singling out the former president for investigation.
“If Mrs. James has something against him, that’s fine, I don’t understand that. [of] illegal discrimination. He is simply a bad guy who should be pursued as the state’s police chief.”
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