The Plaza (West Palm Beach)
The Bank of New York subsequently purchased the property for $43.2 million at a public auction in July 1986, to obtain the title to the land so it could be sold to a developer. Trump purchased the property later that month for approximately $40 million, resulting in a loss of more than $50 million for The Bank of New York. The Plaza became the most expensive property ever sold at a public auction in Palm Beach County, Florida.
The condo association president said that the residents preferred a name that was “generic, low-key and didn’t attract attention of any kind. Our original name of ‘The Plaza’ filled that need”. By the time of the proposed name change, a $6 million renovation had been carried out on the property, including the roof, balconies, lobby, and pools. The “Trump” name had been damaging property values, as it deterred some prospective buyers. Two other names considered were Lakeview Plaza and La Vue.
Nease, Jack (December 16, 1990). “Trump Fire Sale Offers Cool Deals”. Pounds, Marcia H. (July 15, 1986). “Plaza Sells for $43.2 Million”. The Palm Beach Post. Glabman, Maureen (October 6, 1986). “Beber Silverstein Lands Account For Trump Plaza Condo Towers”. Tusa, Rosa (March 14, 1985). “Developer Breaks In Model Kitchen”. The Palm Beach Post. Pounds, Marcia H. (July 22, 1986). “Trump Buys Plaza Condos”. The Palm Beach Post. Kolody, Tracy (September 9, 1990). “Trump Troubles Hit S. Florida Developer’s Latest Chapter Deals With Mar-a-lago, Condo Project”. Sanes, Ken (May 3, 1984). “Loan Ends Financial Trouble: WPB Plaza Gets $81 Million Boost”. Van de Water, Ava; McClinchy, Bill (May 7, 1986). “Iacocca, Trump Negotiating To Buy Condominium”.
Iacocca also purchased a Plaza penthouse. At the time of the purchase, The Plaza contained 224 condominium units, priced between $275,000 and $960,000. Although the condominium units were considered by local real estate analysts to be overpriced, Trump planned to raise prices by 15 to 20 percent within a few months after the building’s grand opening, which was planned for November 1986. Trump, who planned to sell more than 200 remaining condominium units in the building within a year and a half, intended to add new apartment models, furnished apartments, a restaurant, and a hair salon. Real estate analysts believed that the building would sell better with the Trump name.
