
INTERVIEW: TRUMP POWER
Developer Donald Trump extends influence to West Coast.
By Patricia Baldwin
Photography by Chris Haston & Thomas Alleman
Baseball Hall of Famer Dizzy Dean opined: "It ain’t braggin’ if you can
back it up."
Donald J. Trump doesn’t brag.
Trump is the largest developer in New York, with his empire expanding
internationally and encompassing projects from condos to golf courses to
casinos. He owns a country club in Florida where the initiation fee is
$350,000 and a club in New York where memberships command $300,000. Among
his many real estate works-in-progress are a hotel and condo project in
Toronto, a 90-story tower along the Chicago River, and a 60-story Trump
Tower on the Las Vegas strip. The progression west of the Hudson River for
this new member of the City Club on Bunker Hill in Los Angeles
currently culminates in the final stages of the renovation of Ocean Trails
Golf Club. When complete, the golf development will be renamed Trump
National Golf Club Los Angeles. The beautiful site south of Los Angeles,
Trump says, is superior to the fabled Pebble Beach Golf Links because every
hole overlooks the ocean. The layout is perhaps the most expensive in golf
with its price tag of $261 million. Of that, $61 million has been invested
in the 18th hole, which collapsed into the ocean six weeks prior to the
club’s grand opening in June 1999. The landslide bankrupted the original
owners, and Trump, who acquired the property about 18 months ago from the
main creditor for a reported $27 million, notes that "fortunately, it’s not
all my money."
The billionaire developer is quick to credit his father, Fred Trump, with
cultivating his business instincts. He’s now passing that knowledge on to
the first of his four children, Donald Trump Jr., who prefers to be called
"Don" and who is overseeing the Trump Park Avenue luxury condominium project
on the exclusive corner of Park Avenue and 59th Street in New York. Trump
also is getting his eldest son involved in Trump National Golf Club in
Bedminster, New Jersey, scheduled to open in late summer. Tom Fazio has
designed the par-72, 7,350-yard course being built on what was the old John
Z. De Lorean estate where a 1930s classic Georgian manor house will serve as
the clubhouse.
As the 21st century began — years before the television reality show
The Apprentice — a survey conducted by Washington-based Democratic
pollster Rob Schroth revealed that 97 percent of Americans knew of Donald
Trump. Many more television viewers are now, no doubt, familiar with his
trademark "You’re Fired" decree in his boardroom showdowns. The
Apprentice, which Trump executive produces, has been renewed for a
second season this fall.
On a limousine drive to Rancho Palos Verdes and subsequently a visit to
Ocean Trails, aka Trump National, Trump spots a tree he likes and makes sure
one of his staff members takes note.
OK, gotta ask: You’ll knock on the door and say, excuse me, but I’d like
to buy your tree? "Yeah — pretty resourceful," he affirms with a smile. "I
do it a lot. I’ve bought many trees — at least 10 specimens — from people’s
backyards because you can’t find trees like that."
And you can’t find many afternoons more entertaining than the one I spent
following The Donald through his day in Southern California. Here are some
excerpts from our wide-ranging conversation.
In a handful of words, describe Donald Trump.
I think I’m somebody who has a certain business ability and a lot of
imagination. A lot a people have imagination, but it doesn’t help them
because they can’t execute. I’m able to execute with the imagination.
You’re called "Mr. New York." But we’re sitting in Los Angeles. Talk
about the importance of your West Coast presence.
Well, I had an opportunity to buy what I considered the best piece of
real estate I’ve ever seen — 300 acres, two miles on the Pacific Ocean. I’ve
never seen a property comparable to this in a major city. I’ve seen
properties that are beautiful oceanfront, but they are in the middle of
nowhere. To have two miles along the ocean and 300 acres near Los Angeles is
sort of amazing. So it was an opportunity that I jumped at and I’m going to
build a golf course that will be better than Pebble Beach. I’m also going to
build 75 mansions overlooking the Pacific Ocean.
Speaking of real estate, will there be a Trump Tower in L.A.?
We’re looking at different options in L.A., but right now I’m doing a
project in Chicago that is actually the largest building built in the United
States since the Sears Tower. It’s a big and very beautiful building
designed by Skidmore Owings & Merrill in Chicago. It’s very possible that
L.A. will be a natural extension of what I am doing.
Is the real estate philosophy of "location, location, location" a truism
for you?
Certainly location is very important. But I think I would rather have a
really professional and talented developer than necessarily a good location.
I’ve seen people without talent take a great location and destroy it. And
I’ve seen people with great talent take a not-so-good location and make it a
tremendous success. So the word "location" is obviously very important, but
you know the best combination is to have a great location and somebody with
great talent to develop it.
You are working on a casino in London, real estate projects in Brazil,
and other international endeavors. You’re also very hands-on. How can you
spread yourself so far and wide?
We are working on various international projects. One of them is going
to be a Jack Nicklaus Signature Golf Course in Brazil, along with a
spectacular and extremely high-end housing development. And I’m doing a Jim
Fazio course [Trump International Golf Club] on Canouan Island, which is
right next to Mustique. We’re going to do a super luxury project there. It’s
a course built on the side of a mountain, with all holes facing the ocean. I
hire very, very talented people. And I let them go with it. They’ll come
back and they’ll ask questions, which I want them to do. I’m a worker and I
always spend a lot of time on the sites. But, as example, I have great
partners in Korea. We’ve already done three buildings, and they have been
tremendously successful.
Trump National Golf Club Los Angeles is a public golf course as opposed
to your other private club developments. In terms of golf development, is
your strategy changing?
Trump National is very unique. If it were 400 yards to the east, I
wouldn’t have done it. I’m doing it because it’s on the ocean and in Los
Angeles. It will be a resort course like Pebble Beach. Probably, I would
make it a private course if that were doable, but, in California, you can’t
have a private course that’s on the ocean. Whether it’s a private course or
a course that’s open to the public, it will be the finest golf course in the
state of California.
And you’ve made a large investment in the club to assure that, haven’t
you?
If you add all of the money that has been spent on that course to get it
built, it’s at $261 million, which is both ridiculous and absurd. As you
know, the 18th fell into the Pacific Ocean because of a faulty construction
job. They ran over the water main with bulldozers and water seeped under it.
It was unbelievable. Of course, that was an opportunity for me. So it is
many times over the most expensive course ever built. By the way, I didn’t
spend a big part of that $261 million.
You’ve cited your golf philosophy as "you can’t have a great course
unless it’s difficult and you can’t have a great hole unless it’s pretty."
Does that fit the newest Trump National?
I believe that Ben Hogan made the statement that he had never heard of a
great course that was easy. That’s true. And I think ideally it should be
pretty. Trump National qualifies on both points because of the uniqueness of
the land and the uniqueness of the waterfront. There is no course in the
state of California that has two miles of ocean frontage.
Do you have a favorite hole on the course?
I think that my favorite hole is the 14th hole. It’s got the most
incredible green I’ve ever seen. I think 10 is going to be the best hole.
That’s the hole where you shoot out across the water. And 18 … a lot of
great holes. You know a great course has to have 18 great holes. You can’t
have three or four really good holes. They all have to be great holes.
When did you start playing golf?
I started playing golf at the Wharton School of Finance because I didn’t
have enough to do. I played the public courses of Philadelphia, and it was
actually good learning ground. I would go to Bethpage [State Park in
Farmingdale, New York] at 2 o’clock in the morning and sleep in the car
waiting to get a ticket to play. When you’re young and you want to play
golf, you don’t even think about it. But that was not an ideal golfing
condition.
Your father obviously was an inspiration in business, but I’ve read where
he also inspired you in golf. Talk a little about him.
My father was a residential developer primarily in Brooklyn and Queens.
He was a terrific guy. As he grew older and more successful, he joined North
Hills Country Club in Manhassett [New York] and he really enjoyed it. He had
a great ability for golf even though he didn’t play golf. He would play, at
most, one round every five years, yet he hit the ball beautifully. He had a
beautiful swing. I almost remember that as much as anything else about my
father. When he took me to play golf, I’d say, "But you don’t play golf." He
said, "I know I don’t, but that’s OK, I’ll keep up with you." The first ball
he’d hit right down the middle and long. I couldn’t believe it. Then he’d go
and work Saturdays and Sundays because he liked that more than playing golf.
At least I have good golf genes.
Your father died at age 93, after he saw your success. What did he think
of that?
There are many fathers who are not so proud of their son’s success. They
feel competitive. My father was extremely proud of my success. He really
loved it.
Your name has become a brand. Do you cultivate that? Do you market the
name as you would any other commodity?
I think it started a little bit by accident. In 1980, I built the
building in Manhattan called Trump Tower. It was such a big success that I
said maybe we should try this again. I was not using the name Trump before
that. Now, when I do something that is really important and really great, I
will use my name. For instance, if I didn’t think that the piece of land in
Los Angeles was a great piece of land and if I didn’t think it was going to
be a great golf course, I would not call it Trump National Golf Club Los
Angeles. So I use my name if something is going to be special. And when I
use my name, it has a big impact because people know that is my rationale.
My name has become a brand over a period of time because I’ve done so many
high-end jobs that have become so successful.
Is there more responsibility that comes with having your name on a
project?
There is a great responsibility. First of all, I have 20,000 people who
work for me. I have a great responsibility to those people. And it’s a great
responsibility that I have to the name Trump. And at the same time, you have
a responsibility to do a great job. There’s always luck in life, and there’s
always other outside factors. But when you do something in life you have a
great responsibility to yourself. In this case, I have built a brand and it
is a brand that people admire and respect and write about. And I have a
responsibility to keep that brand as hot as it has become.
Has your definition of success changed over the years?
The definition of success will never change. It will always be the same.
And what is your definition of success?
I think success is making yourself happy and being content with yourself
and the job you are doing. You’re not going to satisfy everybody, but you
have to satisfy yourself. If you’re content with the job you are doing and
if you are happy, perhaps above all else, then you are successful.
Has your involvement with The Apprentice been fun?
It’s been really fun, but it has been a lot of work. It shows business
the way it is. It shows the viciousness of it, the toughness of it. It also
shows the niceties of business. It’s been an amazing experience.
You talk about giving back and you have been involved in many charities.
Do you have a mission that is uniquely yours?
Well, I support a lot of charities. I believe in it strongly. I support
a lot of educational charities but also give a lot of money to different
forms of charity. So, yes, you do have to give back. If you don’t give back,
you feel very fruitless. The country has been good to me. The world has been
good to me, at least so far, and you know you have to give back to people.
You have a lot of "toys," such as your jet, a converted commercial
aircraft with a master bedroom and that reportedly accommodates about 22
passengers — quite comfortably.
I have great toys.
Do you have a favorite?
What I love doing is taking toys and converting them into dollars and
cents. I loved, as an example, taking Mar-a Lago, which is considered to be
the greatest house in America, and converting that to the Mar-a Lago Club, a
private club in Palm Beach, Florida, which is as hot as a club can be. It’s
an amazing club and an amazing success. So I like doing that.
What’s your viewpoint regarding money?
Money is just a scorecard. It’s fun to have. You can do a lot of things
with money, and it certainly makes life a lot easier, that’s for sure. You
don’t have to worry about, oh gee, can I send my kids to this school or that
school? People say money doesn’t buy happiness. That’s right. But it does
make life a hell of a lot easier.
Do you keep track of your net worth?
I don’t really because my holdings are extensive, and they change from
month to month. I do keep track of where I’m going and my direction. In the
early ’90s, I had billions of dollars in debt — $9.2 billion in debt. And I
worked it out. My company today is a much bigger, much stronger company than
it ever was in the ’80s, by many times. I have great relationships with my
lenders.
A lot of publications like to make guesses at your net worth. Will you
confirm what it is?
The accounts vary from $2.5 billion to $5 billion or $6 billion.
Ultimately, it doesn’t matter. It’s about how you feel about yourself.
How did the tough times change you?
I used debt as leverage. I loved leverage. But love of leverage is
ultimately, when the market crashes, what eats you alive. So I’m a much more
conservative person now in terms of debt.
Do you read your own publicity?
Yes. Every bit of it. The people who say they don’t read their own
publicity … they all read it.
If you don’t like something you read, can you move on pretty fast from
that?
Interesting. I can handle that much better today than I used to. Today,
it just seems so unimportant compared to what is happening in the world. Of
course, lately, I haven’t been getting a lot of bad publicity. What’s to say
bad about me? Everything’s booming. But, I’m sure there will be a time in
the future when I’ll get some negative spin. But lately, everything’s been
very positive.
Is there something that you don’t have that you’d like? Or is there
something you haven’t done that you want to do?
You know, it’s a very strange thing, I like golf, but I’m not nearly as
passionate as many people are about golf. And I build great buildings, and
they are very successful. In Chicago, we’re building a tremendous tower. In
New York, numerous towers are under construction. They are very successful.
But I get a tremendous charge out of shaping a piece of land into a golf
course. It’s much more than the deal.
You are your own best salesman, aren’t you?
I think I’m a better salesman than I am a builder. I’m the largest
developer in New York, and I want to say, modestly, but truthfully, I’m the
best builder. I know how to build great structures.
Cary Grant was once quoted saying that it isn’t easy being Cary Grant.
I’m getting the impression that the persona of Donald Trump is different
from the person who inhabits that persona. Is that correct?
I think the persona is quite a bit different than the fact. The image is
much different than what I am. I think I’m a much nicer softer person
than the image that is portrayed.
DONALD J. TRUMP
Club membership: City Club on Bunker Hill, Los Angeles.
Occupation: President and CEO of the Trump Organization.
Principal residence: New York.
Date and place of birth: June 14, 1946, Queens, New York.
Family: Four children: Donald Jr., Ivanka, Eric, Tiffany.
Education: Wharton School at the University of Pennsylvania.
Mentor: Father, Fred Trump (deceased 1999, age 93), residential real
estate developer who helped transform much of Brooklyn and Queens following
World War II. "The reasons for my father’s incredible career are actually
pretty simple: He always worked faster and better and for less money than
his competition. I learned much from him."
Business update: Renovation of Trump National Golf Club Los Angeles
(formerly Ocean Trails Golf Club) will be completed in early summer. Trump
acquired the upscale daily fee course in Rancho Palos Verdes, California,
after the original developers were forced into bankruptcy when a chunk of
the course’s 18th hole collapsed into the Pacific Ocean. From January
through April, Trump executive produced and starred in The Apprentice,
a reality television show aired by NBC and described by Trump as a "13-week
job interview." Applicants (215,000 people auditioned for the 16 spots) vied
for a $250,000, one-year job assignment within the Trump Organization.
The Apprentice has been renewed for a second season this fall.
TRUMP IN PRINT
Donald Trump’s latest book, Trump: How To Get Rich — Lessons From The
Apprentice and Other Big Deals, is scheduled for a spring release.
Other books by Trump: Trump: The Art of the Deal; Trump: Surviving
at the Top; Trump: The Art of the Comeback; and Trump: The America We
Deserve. |