Trump Hollywood may struggle in sleepy beach town

TRD New York /
Aug.August 28, 2009 11:02 AM

From the South Florida Web site: Trump Hollywood officially opened its doors on Friday with all the fanfare that usually accompanies a grand opening bearing the Donald’s surname.

Developed by the Related Group, the $355 million, 40-story luxury tower faces the Atlantic Ocean with a glass facade, beachfront pool deck, library, private dining room, club room, screening room and a list of other amenities.

Related Group CEO Jorge Perez and Donald Trump Jr. were on hand to host a luncheon and tour of the property, which includes a 4,000-square-foot spa and fitness center, yoga studio and treatment rooms, a wine cellar, cigar room and sunrise bistro.

It was not an event that reflected tough times. The grand lobby was the site of a five-star meal. After lunch, guests were treated to mini-massages and antioxidant shots in the spa before heading to the wine cellar for a tasting. The tour ended with a preview of the 3,000-square-foot, $2.4 million model residence.

“Trump always does grand opening and publicity to the max. So this type of extravagant event is not surprising,” said Jack McCabe, principal of McCabe Research & Consulting in Deerfield Beach. “Trump holds the grandest of grand openings to attract the high-dollar potential investors and buyers.”

Trump Hollywood has 200 units ranging in price from $1.3 to $7 million, accessible by private elevator. Floor plans include 2- and 3-bedroom layouts and “sky residences” with up to five bedrooms and six and a half baths. The question is, will anyone pay that much to live on Hollywood Beach?

Hollywood is a quiet town of less than 140,000. Before the Westin built its Diplomat Resort & Spa there, Hollywood Beach was known as a retirement village. The Diplomat spurred some activity, but Hollywood still lacks the restaurant and retail buzz of an upscale Bal Harbour, Aventura or Miami Beach.

As McCabe sees it, Hollywood is still at the beginning of a renaissance, and multimillion-dollar condo units seem out of place on a strip of beach characterized by aged condo conversions, apartments and motels. Even though Westin is building the Diplomat Residences a stone’s throw away, these two properties are the exception rather than the rule in a city that attracts Canadian tourists in the winter.

“Trump has always claimed adding his name to a project through a licensing fee or an equity partnership…added 20 to 50 percent more value,” McCabe said. “Yet we have five projects with Trump’s name on them in South Florida right now. You could make the case that market conditions have affected all of them just like other developments. With these prices in this market, there are no guarantees for Trump Hollywood’s success.”


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory

Make Greenland Great Again? Trump wants to buy Arctic territory

Make Greenland Great Again? Trump wants to buy Arctic territory
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related is the latest developer to target the Rockaways
Hamptons’ priciest summer rental to host MAGA extravaganza next month

Hamptons’ priciest summer rental to host MAGA extravaganza next month

Hamptons’ priciest summer rental to host MAGA extravaganza next month
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Related lays out $200M debt settlement plan for Tel Aviv bondholders
President Donald Trump (Getty, iStock)

Trump tweets that he “may END” Obama-era fair housing regulation

Trump tweets that he “may END” Obama-era fair housing regulation
Eric Trump with Trump National Doral Miami (Getty, Trump Org)

Eric Trump is in driver’s seat as Trump Org reopens properties

Eric Trump is in driver’s seat as Trump Org reopens properties
President Trump with 555 California Street and 1290 Sixth Avenue (Getty, Google Maps)

Trump could face massive tax bill with proposed sale of office towers

Trump could face massive tax bill with proposed sale of office towers
Donald Trump and Vornado's Steve Roth with 555 California Street in San Francisco (left) and 1290 Sixth Avenue in New York (right)

Vornado looks to sell towers co-owned with Trump

Vornado looks to sell towers co-owned with Trump
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...