65 pages • 2 hours read
Donald J. TrumpTrump: The Art of the Deal
Nonfiction | Book | Adult | Published in 1987A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Index of Terms
Air Rights
Air rights in New York real estate development refer to the legal ability to buy, sell, or transfer the unused development potential (floor area) above a property. This allows developers to build taller structures than zoning laws would typically permit by acquiring air rights from adjacent or nearby properties. In The Art of the Deal, Donald Trump describes how air rights are another part of his negotiating and development process, buying and selling air rights from nearby buildings to fuel his development plans.
Letter of Intent
A Letter of Intent (LOI) in New York real estate development is a non-binding document outlining the key terms and preliminary agreements between parties before executing a formal contract. It typically includes details such as purchase price, due diligence period, financing terms, and other conditions essential to the transaction. Trump uses letters of intent to protect his negotiations, while also offering to rip up his own letter of intent for a rival due to a sense of honor.
Option
An option in New York real estate development is a contractual agreement that grants a developer the exclusive right, but not the obligation, to purchase or lease a property at a predetermined price within a specified time frame. This allows the developer to secure control over the property while conducting due diligence, obtaining approvals, or assembling adjacent parcels. Trump purchases options on promising pieces of real estate, which he then attempts to develop.
Poison Pill
A poison pill in American business dealings is a defensive strategy used by a company to prevent or discourage hostile takeovers. It typically involves issuing new shares or granting existing shareholders special rights that dilute the value of the stock or make the acquisition more expensive and less attractive to the potential buyer. Holiday Inn considers this strategy in an attempt to warn off a hostile bid from Donald Trump.
Zoning
Zoning in New York real estate development refers to the regulatory framework that dictates how land can be used and developed within the city. Governed by the New York City Zoning Resolution, it establishes rules for building height, density, land use (residential, commercial, industrial), and other factors to guide urban growth and land use planning. Donald Trump prides himself on being able to navigate New York City’s complex zoning regulations, in contrast to other developers who get tangled up and thus lose money on their projects.
