Last credible valuation I saw about Mar-A-Lago, was when Trump released his Taxes. The Trump Org. had it valued at something like $300-320 Million, which when you compared it to surrounding properties, and considered the fact it's on the beach in Palm Beach, as well as the fact it has historical value, and it's also on the list of largest private residence in the United States, it all made sense.
Mar-A-Lago makes about $20 Million a year, so that's roughly a 6% cap rate/Return. Which sounds about right for a south Florida Hospitality property.
Is that before or after costs of maintenance/upkeep/utilities/taxes? I bet it costs a fortune to live there with all the staff, security, landscaping, etc. but he also makes money off of the private memberships. Interesting thought.
My understanding is that's net income, so that's after taxes, upkeep, maintenance, wages, etc. etc. If I remember correctly Revenue for Mar-a-Lago is something like $150-180 Million, but like you said. It costs a fortune for everything required to maintain the "exclusive luxury" vibe.
Like I said 6% cap rate/return for a hospitality property in South Florida is pretty typical. South Florida is so overvalued these days, it's in the same class as LA, San Francisco, New York, DC, and Chicago in terms of cap rates/returns.
Residential cap rates/returns in South Florida are hovering around 3-3.5% currently, and Hospitality typically get's at least double what residential does. So the math lines up.
Last credible valuation I saw about Mar-A-Lago, was when Trump released his Taxes. The Trump Org. had it valued at something like $300-320 Million, which when you compared it to surrounding properties, and considered the fact it's on the beach in Palm Beach, as well as the fact it has historical value, and it's also on the list of largest private residence in the United States, it all made sense.
Mar-A-Lago makes about $20 Million a year, so that's roughly a 6% cap rate/Return. Which sounds about right for a south Florida Hospitality property.
Is that before or after costs of maintenance/upkeep/utilities/taxes? I bet it costs a fortune to live there with all the staff, security, landscaping, etc. but he also makes money off of the private memberships. Interesting thought.
My understanding is that's net income, so that's after taxes, upkeep, maintenance, wages, etc. etc. If I remember correctly Revenue for Mar-a-Lago is something like $150-180 Million, but like you said. It costs a fortune for everything required to maintain the "exclusive luxury" vibe.
Like I said 6% cap rate/return for a hospitality property in South Florida is pretty typical. South Florida is so overvalued these days, it's in the same class as LA, San Francisco, New York, DC, and Chicago in terms of cap rates/returns.
Residential cap rates/returns in South Florida are hovering around 3-3.5% currently, and Hospitality typically get's at least double what residential does. So the math lines up.
Wow - it really is good to be King.