Trump organization remains bullish on New Orleans and committed to the development of 700-foot condominium tower on Poydras Street

Thursday, October 12, 2006

By Greg Thomas

Donald Trump Jr., son of real estate mogul Donald Trump, said Thursday that the Trump organization is bullish on New Orleans and committed to moving forward with development of a 700-foot condo tower on Poydras Street .

The project has been modified architecturally, but would still be the city's tallest structure. New designs for the tower show that balconies and decks have been removed from many of the condos, a change that made it possible for developers to increase the number of units in the building, said Clifford Mowe, a Pensacola Beach developer involved in plans to construct Trump International Hotel & Tower on Poydras Street . The changes, Mowe said, are to try to accommodate rising materials and labor costs.

Trump thinks the changes give the tower a slicker look and are more space efficient. The Trump organization has also found that condo owners in hot climates rarely use balconies and that they end up being a waste of square footage while adding costs to the development.

The project, announced just days before Hurricane Katrina hit, has been delayed by the storm.

"We'd probably be finished (with construction) by now if it wasn't for the storm," Trump said.

Mowe said the development team is waiting for building material costs to subside before moving forward.

Patience can pay off, Trump pointed out. The price of steel was astronomical last year but has since fallen by about 25 percent, he said.

Trump adds that his organization has developed in difficult markets before. Because Trump projects tend to court a worldwide clientele of the very rich, the organization's projects are "immune to cycles and negative downturns. The high-end luxury (market) seems to weather it out. We weather the cyclical tides of real estate" markets, he said.

The Trump International Hotel & Tower calls for 450 condos and 250 condo-hotel units. Buyers of condo-hotel units can stay there as often as they like. But when the owners are away, their rooms are rented out on a nightly basis like any other hotel room. Owners of condo-hotel units typically get a percentage of the room rate whenever it is rented.

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Greg Thomas can be reached at gthomas@timespicayune.com or (504) 826-3399

The Trump International Hotel & Tower will be the city's tallest structure. New designs for the tower show that balconies and decks have been removed from many of the condos, a change that made it possible for developers to increase the number of units. [2757059