Trump: The Art of the Deal

Donald Trump’s decision to repurchase the West Side Yards in 1985 was perhaps his “easiest business decision” (325). Spanning 100 acres of Manhattan riverfront, it was one of the most valuable undeveloped properties in the US. Trump acquired it for approximately $95 million, a fraction of its potential worth, especially compared to other deals, like the $500 million purchase of the Columbus Circle Coliseum site just four blocks away. Trump originally secured an option for the land in 1974, when New York City was near bankruptcy and real estate values were low. However, due to the lack of government subsidies for middle-income housing, community opposition, and financial constraints, he decided not to exercise his option in 1979. The land was then sold to Abe Hirschfeld, who brought in Franco Macri, an Argentinian businessman.

Macri’s inexperience with New York real estate led to a series of mistakes. He made “far too many concessions to the city” (328), agreeing to over $100 million in giveaways, including subway station renovations, a park, and a $40 million Con Edison smokestack. He also failed to generate excitement for his Lincoln West project and designed uninspiring buildings that resembled public housing. Banks refused to finance the project and, by 1984, Macri was facing financial difficulties.