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REALESTATE January27, 2020O
nan almost cloudless,70-degree winter
morning inPalm Beach,Fla., realestate
broker RobThomsonsitsinsidePresident
Trump’s privateclub,Mar-a-Lago,reflecting
on a bannerseason.“I’vebeensellingreal
estate for 34 years,” saysThomson,a clubmemberandthe
owner of Waterfront Properties& ClubCommunities.“This
is the longest bull run of mycareer.”
Large houses, small houses,emptylots,andmansions—
they’ve all flown off the shelfthankstothestate’sgenerous
income tax rate (0%) andPalmBeach’sinternationalpres-
tige. In the past 12 months,threepropertiesinthetownsold
for about $100 million each.“We’reseeingpeoplepaymore
for things than before,” Thomsonsays.
And yet there’s one notablecloudonthebarrierisland’s
otherwise sunny outlook:the 10 housessittingunsoldwithin
a half-mile, four-block radiusofMar-a-Lago,whichTrump
designated his primary residencelastSeptember.
The property at 1090 SouthOceanBlvd.hasbeenonthe
market since 2016; its askingpriceis$6.95million,down
26.5% from an initial $9.5million.Fourlistingshavelingered
since 2018 or before; sevenhavehadtheirpricesreduced.
This is in stark contrast totheeightluxuryPalmBeachhomes
that sold in the fourth quarterof2019,whoseaveragetimeon
the market was only 191 days,accordingtoDouglasElliman
Realty LLC.
“The fact that they’re allbeingmarketedatthesametime
in close proximity is notnatural,”saysJonathanMiller,the
president and chief executiveofficerofMillerSamuel.“A
cluster of listings, especiallyatthehighend,is notlikelyto
reflect a positive condition”inthemarket.
But the struggles haven’toccurredonlysincethetime
ofthe 2016 election.ListedwithWaterfrontPropertiesforV
250 Algoma
Road
Price: $5.495 million
Square feet: 4,703
Bedrooms: 6
Bathrooms: 6
Acres: 0.41“It has all the charming features
that everyone desires on the
island,” says broker Michael
Korman of Korman Realty. “It’s
what people are looking for when
they say they’re looking for a
Palm Beach property.” The home,
built in 1938, has a pool, detached
guesthouse, and separate garage.
The house is one lot in from the
Intracoastal Waterway and comes
with deeded beach access.0.6 MILES
1,500 STEPSIn yellow, the distance to Mar-a-Lago in miles and in boomer-friendly steps$15 million, 500 Regents Park has been off and on the market
since 2006; in 2018, its asking price was $25 million.
Brokers have varying explanations for why this little area
has so many empty mansions, but they all say it has nothing to
do with Trump. “That’s an aberration,” says Ridgely Foster, a
broker with Sotheby’s International Realty Inc. in Palm Beach.
“It’s like when people get cancer and then they sue the power
company and try to prove it came from the power lines.”
Paulette Koch, a broker with Corcoran Group, says the
accumulation of houses for sale around Mar-a-Lago is “all
coincidental.” The truth is, she adds, “you can get a group
of people who all want to sell [at once] for varying reasons.”
There are headaches for residents when the president vis-
its, but, Thomson says, the hassle is minimal, even at the
club. “It’s not like they’re strip-searching me,” he says. When
Trump is there, “you pull into the tennis court, they run a
thing under your car, a dog walks around your car, they open
your trunk and take a look, and then they say thank you.”
Some brokers claim that if anything, Trump’s visits have
a positive effect. Jeff Cloninger, a broker for Sotheby’s, says
friends who live nearby like walking to the beach without
looking when crossing the street—there’s simply no traffic.
“There’s a positive side to everything,” he says.
Others point out that the listings, like Mar-a-Lago, are
under the flight path of planes landing at the Palm Beach
International Airport, a phenomenon so deafening it’s called
“the Palm Beach pause,” because people can’t speak over it.
Miller has a different take. “It’s not uncommon to have
clusters of people around a celebrity or notable name try-
ing to cash in,” he says. In other words, Trump might not be
a deterrent, but he also might not be the draw they think he
is. “It’s more about these listings being overpriced.”
Here are eight of the 10 properties.PREVIOUS PAGE: JOE RAEDEL/GETTY IMAGES