Interview With Ivanka Trump

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I.T.: I don't think that in those markets there's a fundamental decline in the intrinsic value of the real estate. I think there's ebbs and flows in terms of demand. We're very fortunate, and I think one of the things that we are greatly reliant on and we are uniquely able to access in this environment, is an incredible database of international buyers. I would argue that we're the only branded condominium developers that have international recognition. There are many other condominium developers who may or may not be known to a small group of people, but I wouldn't argue that they're brands in and of themselves. So we have the ability, and this has increased greatly due to The Apprentice, due to the fact that we have so many projects under construction or in the development process all over the world, is that we're accessing brokers that we never before, 10 or 20 years ago, would have ever had access to. We're accessing markets that we never would've been able to penetrate, so we have an incredible database of loyal buyers all over the world, and that really has been a hedge against the downturn.

L.G.: Are you concerned, now that oil is back at $70, that your Middle-Eastern customers will have less money to spend on your projects?

I.T.: If you had said oil was at $70 two years ago, you would've said that was very high, so that does not concern me. I think, in terms of oil, I would love it to be much lower than $70, as would most people. It has changed so radically that it's almost impossible, sitting here today in New York City, to even place a gambler's bet on what it would be tomorrow or even an hour from now. I mean, high oil prices have a negative effect across the board for multiple reasons—obviously from a travel perspective, from a hospitality perspective, they're cutting flights left and right all over the country. But then, naturally, for the cost of construction, they're fundamentally relate. So yes, the increase in oil prices is a disaster for the economy.

L.G.: How do you plan for a depression? People say that's where we're headed, and I don't know who of us would've thought that we'd see the government bailing out merchant banks that are over 100 years old.

I.T.: That's amazing.

L.G.: I guess most people were surprised about how bad things were getting, but did you have any notion that things were not quite right?

I.T.: Oh, absolutely. Primarily, my father was very ahead of the curve in his pessimism about the future of the market, so starting around two and a half years ago, he was saying that we're in for a severe and extreme economic downturn—and this was at a time when people were still arguing that bubbles no longer exist, and now that we have better controls over regulating the financial markets, we'll never experience another great recession or great depression. So I very much was cognizant of this. I think I was surprised at the magnitude of what we're seeing. I don't think there is anyone out there who could've foreseen just how catastrophic this would be on a global level.

L.G.: On a fear level, how scary is all that?

I.T.: I think it's extraordinarily frightening. I mean, you feel it. You walk the streets of New York today, and people are depressed in a way that they weren't two months ago. And if you're at all cognizant of the environment around you, it's impossible not to feel the anxiety that's in the air for people that are being directly being affected, people who are just more cognizant of that which they're spending, that which they're doing. I think we're in a very fortunate situation. For the past several years, my father has believed very firmly that prices were out of control, that good deals weren't being made in terms of asset purchases, and we really took a step back and we focused on growing our model. Internationally we focused on growing our management company, we focused on our license deals, which provide incredible returns to us.

L.G.: With very little risk, or zero risk on licensing?

I.T.: We'll only associate ourselves with great projects. The risk is hurting the brand, which is ultimately our greatest annuity, so there's nothing more valuable to this organization than our track record of execution.

L.G.: Because you know if a Trump project hits the shoals, it's not going to be ignored.

I.T.: One hundred percent, and we're very careful and we're very protective of that brand. And that is why we're as involved in every single deal as we are. Because, ultimately, this is my brothers' and my legacy, and this is something we look to continue to grow. And my father has done such an incredible job building it to where it is, and we want to continue in that same vein. So we're fortunate from the standpoint that my father very much learned lessons the last time he went through this downturn, and he was in a much different situation in the early '90s. A lot of people didn't learn lessons, and I think you're starting to see that a lot of bankers didn't learn lessons, a lot of developers didn't learn lessons, and people exposed themselves in a tremendous and very real way. So, from our perspective, obviously everyone suffers, everyone wants the economy to be blazing hot. But there are, for the first time, really great deals to be made, and we're in a situation and position to make them.

L.G.: Because you can pick off things on the cheap now?

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