Trump Real Estate Sells to Secretive Buyers

It is not uncommon for large real estate holdings to be sold to shell companies, or Limited Liability Corporations (LLCs), corporate entities that allow people to purchase property without revealing all of the owners’ names. But in an extended investigation USA Today discovered an increase of 66.5 percent in the number of sales to LLCs of Trump properties in the year following President Trump’s nomination for president compared to the two years prior.

Over six months journalists reviewed all Trump properties, "cataloging every condo, penthouse or other property that Trump and his companies own..and tracking the buyers behind every transaction". In the two years prior to President Trump’s nomination to lead the Republican ticket 4.2 percent of Trump holdings sold to anonymous buyers through LLCs. After his nomination it was 70.7 percent. That 70.7 percent represents nearly half of Trump Organization revenue.

According to the report the significant percentage shift of sales to shell companies is not consistent with the rest of the market:

"The clear post-nomination shift since last year to more shell-company purchases is unique to sales by Trump’s companies, even in his own towers and neighborhoods. Condos owned by others in the same buildings, and sold during the same time period, were bought by LLCs in no more than 20% of the transactions. In some areas, the share was far less.”

At the same time, USA Today found no Trump properties that sold obviously above market rate when comparing comparable properties in the same buildings and neighborhoods.

The issue raised by the report is, with this transactional shift in the sale of Trump holdings, it is very difficult to ascertain whether or not the Trump Organization is receiving significant business from entities who are benefitting from the president’s policies or executive actions. As explained in the report:

"Profits from sales of those properties flow through a trust run by Trump’s sons. The president is the sole beneficiary of the trust and can withdraw cash any time."

Should lawmakers push for greater separation between the president and his family’s business? Use the Take Action button to tell your reps what you think!

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— Asha Sanaker

(Photo Credit: Bin Im Garten via Wikipedia / Creative Commons)