Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts

Thursday, October 13, 2016

More Donald Trump Stories From My Cab

In looking through my journals recently (I've kept journals of my most interesting fares since I started driving a taxi in 1977) I came across two more Donald Trump stories, both from 2011.  I contend that firsthand data (you witnessed it yourself) and secondhand data (someone you know witnessed it and told you about it) can be valuable in validating or contradicting third-hand data (the media).  So with that in mind, here they are, again without embellishment.

1. January 31, 2011 -- I picked up a sixty-ish Hispanic woman and drove her to JFK, a forty-minute ride, at 4 a.m.  She told me she worked for many years for a very wealthy woman who had just died at the age of 94.  This elderly woman had a home in Palm Springs, California, and an apartment in New York City in Trump Tower.  My passenger said she is now returning to the Palm Springs home where her husband is a gardener.  I asked her if she ever meets Donald Trump in the Trump Tower building and, if she does, has she ever seen him NOT wearing a suit and a tie.  (This was on my mind ever since I'd noticed that in all the years Trump has been showing up in the media I had never seen him without a suit or tie, even when a TV camera would show him sitting in the stands at baseball games.)  She said that she had met him occasionally in the elevator and, no, come to think of it, she had never seen him wearing anything but a suit and a tie.  She said Trump was always polite and interested in her opinion about the service in his building.  She recalled that he asked her once if the doormen were friendly.  She also added that the doormen say that Trump doesn't like to shake hands with people and that she sometimes sees his young son being pushed around in a stroller by a nurse and followed by two bodyguards close behind.  

"That's the price of being too famous," I said to her.

2. June 30, 2011 -- I picked up a young Hispanic man in Queens and drove him to Washington Heights in Manhattan, a thirty-minute ride, at midnight.  He told me he works in maintenance for the Trump Organization and that the next day he will be taking a test for his license to operate boilers (a big deal for him).  I asked him if he had any Donald Trump stories and he recalled one.  He told me he had once been working at the Wollman Skating Rink in Central Park, which is managed by the Trump Organization, and Donald Trump personally fired one of the workers because he wasn't dressed in the proper uniform -- instead of a black shirt and black pants, he was wearing a white shirt and black jeans.  "Asshole," my passenger said.  He added, however, that the perks of his job are great.  (No mention in my journal of what the perks are, unfortunately.)  

He said that he has seen Trump not wearing a suit and tie, "but only when he's going to play golf." 

He also told me that the owners of residences in the Trump building on Central Park South pay $80,000 a month for the maintenance of their apartments and that the man on the top floor, a penthouse, "owns a major bank."  This last bit of information I found particularly interesting because it gave me a gauge, a little measuring stick, by which to better comprehend the difference in wealth between the 1% and the rest of us.  

$80,000 a month for maintenance.  I own a small condo myself.  I pay $103. 

  

Monday, March 28, 2016

What It Takes To Get Rid Of A McDonald's

Here's a question I've asked dozens of passengers in my cab over the years, and I'll ask it to you now: have you ever -- in your life -- noticed a McDonald's that, once it was there, ceased to be there? Think about this for a minute... I'm talking about every town or city you've ever lived in, every town or city you've ever known, every highway you've ever driven on that had a rest stop, every mall you've ever shopped in: have you ever known of a McDonald's that went away?

I'll bet you can't name even one.

I say this because no one in my cab has ever been able to think of one.  Well, actually there was one passenger who could.  He said there was a mass shooting in a McDonald's in San Diego, California, in 1984 in which twenty-one people were killed, and in the aftermath the McDonald's Corporation decided to raze the building and donate the land to the city rather than reopen it.  However, a new McDonald's was eventually built just a few blocks away.  So it's debatable as to whether or not this counts.

Wondering why this was so, I learned through conversations with passengers and with a bit of research on the net that in the great majority of cases the McDonald's Corporation owns the land upon which the restaurants are constructed.  A realtor in my cab recently told me, in fact, that people are mistaken if they think McDonald's is in the hamburger business.  Actually, he said, they're in the real estate business.  The value of their real estate holdings, including the land itself and the buildings, is more than 28 billion dollars.

So imagine my surprise when I drove up 10th Avenue in Manhattan a few weeks ago and noticed that a fence had been constructed around a McDonald's at 34th Street and it was shuttered up.  This was especially interesting to me because this very same McDonald's was, in fact, demolished about twenty years ago and I remember thinking at the time that it was the only one I knew of that had ever gone away. Especially strange, I thought, because it was one of the very few restaurants in Manhattan that had its own parking lot.  You could actually park your car and go into the place to eat, unheard of in the real estate paradise known as Manhattan.  And now it was gone?

No!  What happened was that, Hydra-like, it came back!  A new, bigger, two-story McDonald's arose in its place and was super-sizing the fries, sodas, and shakes all over again.  What, I had to wonder, could it possibly take to kill off one of these joints?

The answer to that question requires a closer look at what's been happening in the section of Manhattan that is bounded from north to south by 34th Street and 30th Street and from east to west by 10th and 12th Avenues.  It has its own new name: "Hudson Yards".  "Hudson" because the Hudson River is right there next to 12th Avenue and "Yards" because the construction that's underway there extends over the West Side Rail Yard, where trains headed for Pennsylvania Station come, go, and hang out.  It's a massive real estate development which when completed is expected to consist of sixteen skyscrapers with more than 12 million square feet of office, residential, and retail space.  An extension of the Number 7 subway line -- a massive construction project in itself -- was recently completed and opened for business with a station on 34th Street between 10th and 11th Avenues, the first new subway station to open in New York City in twenty years.

It's a big deal.

So why did the McDonald's go out?  Well, it was due to the value of its land, of course.  We all know about "location, location, location" and this is a location wet dream.  It's about an acre of the most prime real estate imaginable, literally adjacent to the new subway station.  Who was the genius who years ago decided to acquire a plot big enough for a parking lot?  Incredible.

I had to wonder what the price could have been for the McDonald's Corporation to sell out.  Happily, I was able to extract this information from two recent passengers in my cab.  One was a real estate lawyer and the other an executive of the development company which bought the land. (It's amazing to me how, when I decide that I want certain information, somehow a passenger shows up in my cab who provides me with it.  It's been happening for years -- a phenomenon, really.)

Anyway, what do you think it was?  Before you read on, just sit back for a minute and think about it.  An acre of land in the middle of a huge, huge real estate development in a whole new section of Manhattan that has its own new subway line -- what do you think that's worth in today's dollars?

Okay, here's the answer (drum roll, please)...

One hundred and forty-four million dollars, including the air rights.

One hundred and forty-four million dollars.

So now we know.

That's what it takes to get rid of a McDonald's.


Sorry, Morgan Spurlock.