Trump: Take Your $5 Billion Apartment Complex and Shove It

03 01 04 pod thumb Trump: Take Your $5 Billion Apartment Complex and Shove It
Larry King likes his hair

Donald Trump is always good for very long-winded sound bites, but nothing beats today’s CNBC interview on Stuy Town.

“WELL, THEY JUST SENT ME THEIR WONDERFUL BROKERS AND SENT ME THE LISTING A COUPLE OF DAYS AGO AND I WILL NOT BE BIDDING. IT WILL BE A HEATED BID AND THAT USUALLY MEANS SOMEBODY WILL OVERPAY, I LIKE TO BUY THINGS WHEN PEOPLE DON’T KNOW ABOUT THEM NOT WHEN THE WORLD KNOWS ABOUT THEM AND AT 4 OR $5 BILLION I DON’T SEE IT AS AN INVESTMENT AND IT IS WONDERFUL AND I HOPE SOMEBODY DOES WELL. AND WILL BE WELL SOLD AND I’M SURE THERE WILL BE A LOT OF COMPETITION BUT BASED ON THE COMPETITION, I DON’T WANT TO BID. I DON’T THINK I’LL BE BIDDING.”

Mr. T doesn’t want to bid? Maybe it’s better that way. (Or maybe he doesn’t have the dough?) The full release and transcript are after the jump.

Max Abelson

FOR IMMEDIATE RELEASE: CNBC EXCLUSIVE: DONALD TRUMP SAYS HE IS NOT BIDDING ON METLIFE NEW YORK
APARTMENT COMPLEXES

The following is the unofficial transcript of Erin Burnett’s exclusive interview with Donald Trump today on CNBC’s “Street Signs.” During the interview, Trump says, he will not be bidding for MetLife Inc’s two massive New York City apartment-building complexes selling for up to $5 billion.

Please see transcript below. All references must be sourced to CNBC.

DATE: August 30, 2006
NETWORK: CNBC
PROGRAM: “Street Signs”
TIME: 2:00 pm ET

Erin Burnett: IT IS SHAPING UP INTO THE BIGGEST RESIDENTIAL REAL ESTATE DEAL IN U.S. HISTORY. MET LIFE SELLING A HUGE HOUSING COMPLEX IN THE MIDDLE OF MANHATTAN, 80 ACRES, 110 BUILDINGS, 11,000 APARCEL AND EVERYONE WHO IS ANYONE IN THE REAL ESTATE AN INVESTING SPACE SEEMS TO BE PREPARING A BID AND-MARGRET BRENNAN HAS THE STORY FROM PETER COOPER VILLAGE IN MIDTOWN MAN HAP. HI, MARGARET.

Margaret Brennan: HEY, ERIN, YOU HEAR $5 BILLION AND YOU MAY THINK LUXURY REAL ESTATE, BUT, THIS PLAIN VANILLA RED BRICK APARTMENT COME SPLEX IS WHAT IS UP FOR $5 BILLION! UP ON THE AUCTION BLOCK. FOR 4.5 BILLION MORE THAN WHAT MET LIFE ORIGINALLY PAID BACK IN 1942 WHEN IT BUILT THE AREA AS AND YOUR BEEN RENEWAL PROJECT WITH THE CITY OF NEW YORK AND NOW, THIS LAND IS WHAT IS REALLY SELLING, NOT THE BUILDING, IT IS THE 18 CITY ACRES THAT IS — IT IS BILL ON AND THAT AMOUNT OF LAN IS HEAVILY COVETED IN ANY URBAN MARKET, PARTICULARLY HERE IN NEW YORK. NOW, $5 BILLION THAT AMOUNT MEANS THAT REAL ESTATE EXPERTS THINK MULTIPLE BUYERS WILL MOST PROBABLY BE INVOLVED IN THIS DEAL.

***

ERIN BURNETT: AND NOW EVERYONE YOU HAVE A SENSE OF THE BUILDINGS WE ARE TALKING ABOUT HERE AND NEW YORK’S BEST ZONE REAL ESTATE MOGUL JOINS US WITH REACTION, CNBC EXCLUSIVE, DONALD TRUMP THANKS FOR JOINING US ON “STREET SIGNS” TODAY.

DONALD TRUMP: GREAT TO BE HERE.

ERIN BURNETT: ALL RIGHT, LET US START OFF, MARGARET SHOWED THE LIST OFTHE BIDDERS HERE. ARE YOU GOING TO BID FOR THE $5 BILLION LOT.

DONALD TRUMP: WELL, THEY JUST SENT ME THEIR WONDERFUL BROKERS AND SENT ME THE LISTING A COUPLE OF DAYS AGO AND I WILL NOT BE BIDDING. IT WILL BE A HEATED BID AND THAT USUALLY MEANS SOMEBODY WILL OVERPAY, I LIKE TO BUY THINGS WHEN PEOPLE DON’T KNOW ABOUT THEM NOT WHEN THE WORLD KNOWS ABOUT THEM AND AT 4 OR $5 BILLION I DON’T SEE IT AS AN INVESTMENT AND IT IS WONDERFUL AND I HOPE SOMEBODY DOES WELL. AND WILL BE WELL SOLD AND I’M SURE THERE WILL BE A LOT OF COMPETITION BUT BASED ON THE COMPETITION, I DON’T WANT TO BID. I DON’T THINK I’LL BE BIDDING.

ERIN BURNETT: SO, YOU DON’T THINK YOU’LL BE BIDDING BUT –$5 BILLION YOU THINK IS TOO MUCH.

DONALD TRUMP: IT IS NOT THAT IT IS TOO MUCH, IT IS A VERY HEATED TIME IN THE REAL ESTATE MARKET AND NEW YORK CITY IS DOING VERY WELL AND I READ THEY’LL REPORTS AND WATCH YOU GUYS IN THE MORNING AND I WATCH HOW REAL ESTATE IS DOING TERRIBLY, BUT EVERY TIME SOMEBODY SELLS SOWING MAKE A LOT OF MONEY AND I’M NOT SURE IF I BELIEVE THEY’LL REPORTS AND I’M BUILDINGSING BUILDINGS ALL OVER THE CITY AND THEY’RE DOING WELL, AT SOME POINT YOU WILL BE RIGHT AND YOU ARE NOT RIGHT RIGHT NOW AND THE FACT THE PRICE WILL BE ASTRONOMICAL AND A FAIRLY GOOD LOCATION, CERTAINLY NOT AND PROBABLY IS GOING TO BE A BETTER LOCATION IN YEARS TO COME BUT RIGHT NOW, I WOULD NOT BE INTERESTED. BASED ON THE FACT I DON’T LOVE THE LOCATION. AND THE BIDDING IS GOING TO BE TOO HOT.

ERIN: DO YOU THINK SOMEBODY COULD COME IN INTEREST THERE, I LIVED THERE A BRIEF WHILE UNTIL THEY FOUND I WAS ILLEGALLY SUBLETING –

DONALD TRUMP: I NEVER WOULD HAVE KICKED YOU OUT.

ERIN: DO YOU THINK SOMEONE COULD COME IN AND RAISE IT, GO AHEAD AND GET RID OF ALL THE BUILDING AN COMPLETELY REVAMP IT MUCH LIKE YOU DID ON THE UPPER WESTSIDE WHERE YOU PUT ALL OF THE LUXURY CONDOMINIUMS ON THE RIVER?

DONALD TRUMP: WELL, THAT JOB IS TRUMP PLACE, HAS BEEN A TREMENDOUS SUCCESS AND WILL BE HARD BECAUSE YOU HAVE SO MANY RENT CONTROLLED AN RENT STABILIZED TAN AND THEY ARE WELL-PROTECTED ANDY WILL BE HARD TO GET THEM OUT, RIP DOWN THE BUILDINGS AND BUILD SOMETHING BIGGER AND BETTER AND SHINIER AND THE FACT IS YOU WILL BE STUCK WITH A LOT OF TENANT AND YOU KNOW, I SAY THAT RESPECTFULLY BASS THE FACT IS THESE PEOPLE HAVE LIVED THERE FOR YEARS AND ARE PAYING LOW RENT. AND GETTING THEM OUT IN ORDER TO BUILD A BUILDING OF GREATER MAGNITUDE WILL NOT BE EASY.

ERIN: NOW, I HAVE TO ASK YOU ABOUT THE BIDDERS HERE. AGAIN WE HER CFSB AND UBS, NAME FLOATED OUT THERE AND BIG ARCH ARCHSTONE, THE BIGGEST REAL ESTATE INVESTMENT TRUST IN THE APARTMENT AREA AND HEARING ABOUT POTENTIAL BIDDERS FROM THE MIDDLE EAST AND GIVEN WHAT A HOT TOPIC THAT IS FOR THIS COUNTRY RIGHT NOW AND GIVEN THAT I KNOW YOU HAVE A RELATIONSHIP WITH SOME DEVELOPERS IN DUBAI, BUILDING HOTELS THERE. DO YOU THINK WE’LL GET BIDS FROM MIDDLE EASTERN BUYERS.

DONALD TRUMP: I THINK YOU PROBABLY WILL. I MEAN, YOU KNOW,, PEOPLE COULD LOOK AT THE ASSET AND SAY IT IS GLAMOROUS AND LOOK ATY AND SAY IT IS NOT VERY GLAMOROUS AND THE FACT IS IT IS A BIG PIECE OF LANDS, 80 ACRES, THOUSANDS OF UNIT ALREADY BUILT AND SOME WILL HAVE TO COME DOWN AND THE FACT IS IT WILL BE HARD TO TAKE THEM DOWN BECAUSE OF RENT CONTROL AN STABILIZATION BUT YOU’LL HAVE BIDDER FROM EVERYWHERE BECAUSE NEW YORK CITY IS HOT AND THE REAL ESTATE MARKET IS THROUGH THE ROOF AND PEOPLE ARE BIDDING CRAZY PRICES AND WHEN THEY DO THAT, THAT IS WHY I DON’T WANT TO BID.

ERIN: ALL RIGHT. YOU SAID TWO THINGS THERE THAT REAL ESTATE IS THROUGH THE ROOF AND IT IS HOT. AND YOU ARE WORRIED ABOUT PEOPLE OVERPAYING AND I KNOW WE ASKED THE QUESTION, BUT I HAVE TO ASK IT AGAIN, ARE WE IN THE MIDST OF A REAL ESTATE BUBBLE.

DONALD TRUMP: I JUST BUILT A BUILDING ON PARK AVENUE AND 59th STREET AND IT IS THROUGH THE ROOF, A FANTASTIC SUCCESS AND THE APARTMENTS SELL AS FAST AS I COMPLETE THEM AND HAS BEEN A SUCCESSFUL BUILDING AND THE LOCATION IS A GREAT LOCATION BUT THE FACT IS THE NUMBERS WE ARE GETTING ARE MUCH HIGHER THAN I EVER ANTICIPATED AND I CAN SAY AS FAR AS I’M CONCERNED, DOING A JOB, 92 STORY BUILDING AT THE SUN TIMES SITE SELLING WELL AN CALIFORNIA — AND I’M TRYING GO CROSS-SECTION OF THE COUNTRY, AND IT JUST SEEMS TO BE VERY GOOD AND THEY ARE VERY GOOD LOCATIONS AND PROJECTS AND I THINK THE ONES THAT ARE IN TROUBLE ARE THE LESS THAN REALLY GOOD PROJECTS. AND THOSE ARE IN TROUBLE EVEN IN GOOD TIMES, ERIN.

ERIN: DO YOU THINK, THOUGH — I KNOW YOU ARE BREAKING IT DOWN BETWEEN HIGH AND LOW EN, NATIONALLY WE COULD END UP WITH A NATIONAL DECLINE IN PRICES.

DONALD TRUMP: I CERTAINLY DO. BECAUSE INTEREST RATES ARE GETTING TOO HIGH. THE FED IS RAISING THEM TOO MUCH. AND I SEE THEY ARE SLOWING DOWN A LITTLE BIT NOW BUT THE FACT IS THEY ARE RAISING THEM TOO MUCH AND I HAVE BEEN ON YOUR SHOW MANY TIMES, AND I SAID, LOOK, THE ONLY THING THAT IS GOING TO KILL THE COUNTRY AND THE REAL ESTATE MARKET, BECAUSE THE MARKET REALLY IS THE BIGGEST OF ALL INDUSTRIES, IF YOU REALLY THINK ABOUT IT, WHAT IT MEANS IN TERMS OF TO THE THINGS, BUT IS GOING TO BE HIGH INTEREST RATE AND INTEREST RATES HAVE TO STAY NO HIGHER, NO HIGHER THAN WHERE THEY ARE AND NOW, IF THEY –

ERIN: AND THEY ARE LOW HISTORICALLY.

DONALD TRUMP: HISTORICALLY BUT IF THEY GO MUCH BEYOND WHAT THEY ARE NOW THAT IN FACT WILL HURT THE REAL ESTATE MARKET.

ERIN: DONALD LAST QUESTION. WOULD YOU BUY A HOMEBUILDER STOCK NOW?

DONALD TRUMP: PROBABLY NOT. THEY ARE A LITTLE BIT HIGH, HAVE COME DOWN A LONG WAY BUT ARE STILL A LITTLE BIT HIGH.

ERIN: DONALD TRUMP THANKS FOR JOINING US TODAY.

DONALD TRUMP: THANK YOU, ERIN.

ERIN: YOU HER IT FROM DONALD TRUMP, WILL NOT GET IN ON THE $5 BILLION LOT FOR SALE.