Following the recent verdict in former President Trump’s fraud trial, real estate investor Grant Cardone has announced plans to halt operations in New York City, citing concerns over property values and business risks.
His decision reflects broader apprehensions within the real estate community and underscores the potential economic fallout from the trial outcome.
Trump Verdict Prompts Real Estate Exodus
Real estate mogul Grant Cardone has instructed his team to cease all operations in New York City following the verdict in former President Trump’s fraud trial.
The decision highlights growing uncertainties and risks facing investors in the city’s real estate market.
Pencils Down
“We thought this year was the opportunity to come into Chicago, California and New York City. I’ve been waiting for 40 years now to invest in that marketplace. I was completely confident this was the year to come,” Cardone told Steve Doocy on “Fox & Friends” Wednesday. “And when that ruling happened, it was like, pencils down. Don’t touch it. Don’t go there.”
Immediately Discontinue
The business mogul rose to prominence recently when he announced on X that his company would “immediately discontinue” all real estate underwriting in New York City in order to concentrate on other markets, such as Texas and Florida.
Shift to Florida and Texas
Cardone’s firm, Cardone Capital, will redirect its focus to alternative markets like Florida and Texas in light of the unfavorable business environment in New York City.
The move signifies a broader trend of investors seeking more stable and lucrative opportunities outside traditional urban hubs.
Concerns Over Property Values
In addition, Cardone stated that New York presents risks to property values “that outweigh the opportunities” and that the state has demonstrated its politicization of business dealings.
Financial Implications for Investors
The fallout from the Trump trial extends beyond individual investors to pension funds, lenders, and public real estate investment trusts (REITs).
Heightened civil implications and potential loan defaults may contribute to a decline in property values, posing further challenges to the financial landscape.
Underwriting Challenges
Increased scrutiny from lenders and financial institutions presents additional hurdles for real estate investors in New York City.
The necessity to accurately assess property values and income potential adds complexity to underwriting processes, affecting investment decisions and market dynamics.
Echoes of Concern from Industry Leaders
Kevin O’Leary, chief of O’Leary Ventures and a prominent figure on “Shark Tank,” echoes Cardone’s apprehensions about investing in New York City post-trial.
He emphasizes the adverse impact of high taxes and regulatory burdens on the city’s competitiveness and attractiveness to investors.
Business Ripple Effect
Cardone warns of a broader business ripple effect stemming from the reluctance of investors to engage in large-scale projects in New York City.
The sentiment underscores a lack of confidence in the city’s economic prospects and regulatory environment among industry stakeholders.
Future Prospects for NYC Real Estate
Despite the challenges, Cardone remains optimistic about alternative markets such as Texas, Florida, and Arizona, urging investors to pursue opportunities in these regions.
The shift away from New York City reflects a broader reassessment of investment strategies and geographical preferences in the real estate sector.
Read More From The Stock Dork
Tags:
