Could New York seize Trump properties and hit condo owners with a new problem?

A New York appeals court heard Donald Trump’s arguments to overturn his civil fraud case on September 26. The former President argued that the $489 million fine a judge charged him with was exaggerated.

That is the latest chapter in a long battle between Mr. Trump and the state of New York about the fine after he lost a civil lawsuit for fraud. The state proved that he lied about the value of his properties to obtain loans and insurance.

Mr. Trump has struggled to pay the fine but managed to buy himself some time with a $175 million bond, which prevented the state’s prosecutor from seizing some of his Manhattan properties while he appealed.

Still, According to experts cited by The New York Times, seizing the Trump buildings would be almost impossible, as they lay in a deep web of subsidiary companies and creditors.

However, the battle over the properties could create a new problem for condo owners. This year, a New York Times analysis showed that Trump's name has reduced the value of properties in his luxury buildings.

The analysis used data from two real estate firms and sought the oversight of Columbia University economist Stijn Van Nieuwerburgh. It concluded the value of Trump-building condos dropped after he became president.

Properties in Trump buildings went from selling at a 1% premium to selling for a 4% discount, becoming a bargain among luxury properties, Van Nieuwerburgh told the newspaper.

A review by CityRealty, a real estate listing website, collected by the newspaper showed that condos in Trump buildings dropped in value by 23% in ten years between 2013 and 2023.

Van Nieuwerburgh ensured the value drops were unrelated to anything else by comparing condos in similar areas with the same characteristics.

However, the value drop alone does not confirm that Trump's name was responsible. So, according to The New York Times explanation, the Columbia economist made another comparison.

Van Nieuwerburgh ensured the value drops were unrelated to anything else by comparing condos in similar areas with the same characteristics and discovered they lost 25% of their value since 2013.

"This analysis clearly identifies that the Trump brand is responsible for the value deterioration," Van Nieuwerburgh told The New York Times.

They also looked at Trump Tower, arguably the most iconic building of the brand in New York City. They discovered it had lost a stunning 49% of its value.

The analysis came right after the trial in which the former President constantly talked about the value of his brand, including his real estate businesses.

Still, The New York Times claims his presidency could have benefited the Trump brand in more conservative states, like Florida.

Despite the fraud case and value drop, Trump still owns a fortune. According to Forbes, the former President's net worth was $2.6 billion in 2023, lower than the $4.5 billion of 2016 but still high.