Trump weighs in on WTC tragedy

Real Estate Weekly, Nov 14, 2001 by Parke Chapman

Donald Trump addressed a group of Wharton Business School graduates last week on rebuilding Manhattan after the Sept. 11 attacks.

With his trademark bravado occasionally dulled by the serious nature of the topic, Trump outlined his reaction to the tragedy, what comes next for the city and how his original philosophy to build high has changed. It was a tonic speech, since Trump's commentary was frequently self-deprecating and at times irreverent.

Calling it "the saddest day of my life," Trump described how shocked and appalled he was as "the great buildings fell."

"This is a very sad period of time for all of us," he said, adding that real estate-as we knew it before Sept. 11--has changed dramatically.

Even Trump's trademark approach to the business--building higher than anyone else--has apparently been diminished.

"The building that I will be developing in Chicago with the Sun-Times will be shorter and fatter," said Trump, referring to a project that was previously billed as very tall. He dismissed reports that he claimed it would be taller than the Sears Tower, however.

Despite the overwhelmingly negative topic, Trump imbued his speech with some starkly optimistic language, saying that the real estate community "has a tremendous opportunity here."

He also credited the resilience of New Yorkers, who stood firm while the city "took a hard hit."

After speaking to the urgency of rebuilding, Trump outlined what he believes should be developed here.

"50-, 60-story buildings have to be built here. But how can a 50-, 60-story building compare with a 110-story buildings?" he asked the crowd rhetorically.

Trump described how he called Larry Silverstein, of Silverstein Properties, on Sept. 11. Silverstein signed a 99-year net lease for the World Trade Center earlier this year.

"It was a very sad call," he said, adding that Silverstein was remarkably optimistic about the future, despite the catastrophe that had just occurred.

"Even back in 1990, when the world was falling apart, Larry Silverstein was optimistic," he said.

Trump, for his part, was also optimistic about the future of downtown. He mentioned one of his own properties--40 Wall St.--as "doing fine."

He purchased the building several years ago for one million dollars, all 1.3 million SF of it. Trump managed to work in the boast, but his point was that deals will be had downtown once again.

He went on to offer some bullet points of advice near the close of his speech. Foremost among the suggestions--"keep your mind open to new opportunities."

Next, he said always "dare to dream."

"Companies will be doing this, by buying downtown properties," he said.

And Trump added a does of reality when he said "be a little paranoid."

"The world is a vicious place. Be tough, but be honest," he said.

During the question and answer session that followed, Trump discussed his Atlantic City casino operation, and the very real prospect that New York State will legalize gambling.

Closer to home, one audience member asked Trump for business advice.

"I just bought an apartment in Battery Park City prior to Sept. 11. What should I do now?" he asked.

Trump, without hesitation, told him flatly what he would do.

"I'd leave," said Trump.

But he added that-if this recent homeowner could sell his apartment and make a profit--"you ought to be working for me."

One question addressed the fact that Trump stands to benefit from the mass exodus of tenants looking for homes away from Battery Park City. How did he feel about that?

"There will be opportunities. But that opportunity is put there for a terrible reason," he said.

The final question dwelled on whether or not Trump found real estate as engaging as, say, politics. There was a period of time when he did consider a presidential bid.

"I love being a developer," he. said in response to the first question.

He then offered an anecdote about spending some time with professional politician Bill Clinton when he was in office, and this story may have explained the real reason that Trump didn't run for high office.

"He shook hands with everybody out there. And some of these people had filthy hands," said Trump, garnering laughter from the crowd.