Revisiting Mar-a-Lago’s Absurd Valuation

As a real estate attorney with years of experience in property valuations and transactions, I find the legal and financial implications of Mar-a-Lago’s valuation deeply concerning. Property assessments should reflect fair market value, based on tangible factors such as land size, structure, and location. The discrepancy, based on the New York Attorney General's assessment, in Mar-a-Lago’s valuation not only defies industry standards but also raises broader questions about how legal and financial institutions handle high-profile properties.

Legal Battle Over Mar-a-Lago’s Value

Former President Donald Trump was sued by New York Attorney General Letitia James for allegedly inflating the value of his assets, including Mar-a-Lago, to secure favorable loan terms. In September 2023, James contended that Mar-a-Lago was worth around $18 million, while Trump valued it up to $1.5 billion.

The court found Trump libel and imposed a $364 million penalty, now exceeding $450 million with interest. Trump has appealed the ruling, and the case is under review by the Appellate Division of the New York Supreme Court. To delay payment, he secured a $175 million bond.

Notably, despite the alleged asset over valuations, Trump consistently met his loan obligations, and banks profited from their dealings with him. A former Deutsche Bank executive testified that Trump never missed a loan payment, and the bank earned millions in interest from their transactions.

Flawed Valuation of Mar-a-Lago

With extensive experience in real estate valuations, I find Mar-a-Lago’s assigned worth a glaring anomaly that contradicts standard appraisal methodologies.

This valuation is inexplicably lower than numerous Palm Beach properties that are far smaller in size, land, and waterfront exposure, making it an outlier in real estate appraisals. The New York Attorney General assessed Mar-a-Lago at a mere $18 million—an amount shockingly lower than multiple Palm Beach properties that are significantly smaller in size, land, and waterfront exposure. This assessment contradicts standard appraisal methodologies, which consider location, size, and comparative market values, raising concerns about potential external influences.

Despite spanning 20 acres with multiple structures totaling 62,500 square feet and premier waterfront access on two sides, Mar-a-Lago has been valued lower than properties a fraction of its size.?

Smaller Properties, Higher Valuations

When examining the sales data of properties in Mar-a-Lago’s vicinity, the valuation of Trump’s estate appears entirely illogical. For instance, 1090 S Ocean Blvd, which sits on just 0.43 acres and lacks oceanfront access, sold for $19.5 million—more than the assessed value of Mar-a-Lago. Similarly, 1080 S Ocean Blvd, with only 8,722 square feet of living space and 0.40 acres of land, sold for $21.8 million. These properties pale in comparison to Mar-a-Lago in every tangible metric, yet are valued higher.

A particularly glaring example is 200 Via Palma, a property with 10,126 square feet of building space on less than an acre of land, which sold for a staggering $51.6 million. This home has only partial oceanfront access, yet it is valued nearly three times higher than Mar-a-Lago. The same pattern holds for 10 Via Vizcaya, which sits on 0.67 acres and sold for $39 million—more than double the valuation assigned to Mar-a-Lago.

The following table shows recent home sales of at least $18 million—the value assigned to Mar-a-Lago by the New York Attorney General—within the past 17 months since the judgment.

Market Trends vs. Political Influence

The real estate market in Palm Beach consistently demonstrates that larger estates with superior waterfront access command higher valuations. Mar-a-Lago, with its unique historical significance, expansive land, and unparalleled location, should be one of the highest-valued properties in the area. The artificially low valuation assigned by the New York Attorney General indicates a departure from conventional real estate valuation methods and invites scrutiny regarding potential political influences on this assessment.

Beyond its physical attributes, Mar-a-Lago’s revenue-generating potential as a club, event space, and luxury destination further amplifies its market value. Private clubs and exclusive estates with comparable commercial appeal fetch valuations in the hundreds of millions or more. The idea that a 20-acre estate in Palm Beach, surrounded by homes worth tens of millions, would be worth only $18 million is not just questionable—it is economically indefensible.

Final Thoughts on Mar-a-Lago’s Worth

Mar-a-Lago’s valuation at $18 million is a gross misrepresentation of its actual worth, as demonstrated by closed sale prices of significantly smaller neighboring properties. The real estate market operates on clear principles—land size, building size, location, and waterfront access all contribute to valuation. Ignoring these metrics to assign an unreasonably low value to Mar-a-Lago undermines trust in the integrity of asset assessments and suggests potential ulterior motives. The numbers don’t lie: Mar-a-Lago is worth far more than the assigned valuation, and as a real estate lawyer, I have seen countless appraisals, and the data unequivocally confirms that Mar-a-Lago's valuation is drastically below market reality.

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