Donald Trump is being sued by 3 real estate brokers [BusinessWeek] for $1.3M because he “failed to pay them in full after the profitable sale of land and apartments he owned on the former West Side Manhattan rail yards.”
“The lawsuit centers on the billionaire developer’s sale of 77 acres of riverfront and three buildings to the Extell Development Corp. and Carlyle Group for $1.8 billion. Parties to the October deal said it was the biggest residential sale in the city’s history.”
One of the brokers is Barbara Corcoran. The inference in most of the media coverage is that she is doing it one behalf of her namesake company the Corcoran Group, when in fact, she resigned last month after several years as essentially a figurehead after being bought out by NRT. It is not clear whether she shares this commission with her former firm or not. Even Trump doesn’t seem clear on what Corcoran does these days saying he will never do business with her again – that won’t be difficult since she runs a television production company, not a real estate brokerage firm.
Trump says that he hasn’t been paid yet and the brokers say he already reinvested the money to avoid capital gains. Trump has already sued his partners in the sale to Extell/Carlylse claiming they sold below market as evidenced by the purchasers quick plans to flip the property.