#NYAG asserted #Trump's ~2016 #valuation of #SevenSprings for $291M was inflated. A #CushmanWakefield Dec 1, 2015 #valuation of the whole property (not just the easement) was $56.5M.

NYAG directly asked Eric to concede that the part of his video deposition when he stated, “I really haven't been involved in appraisal work on the property” was inaccurate:

"Will you concede that your #testimony was incorrect, yes or no?"

#EricTrump: "I don't focus on appraisals between a law firm & Cushman”

#NYAG showed #EricTrump’s email exchange w/ #CushmanWakefield appraiser David McArdle, who testified earlier (attached).

(This is also indirectly addressed in Eric’s video deposition where he claimed he didn’t know McArdle 🙄)

NYAG asked Eric if he now agreed that the Cushman 2014 #valuation of #SevenSprings was disregarded for the purpose of (to bolster) #Trump's #SFC.

Eric: "No, the exercises are apples & oranges, one has nothing to do w/the other.”

#TrumpOrg #TrumpTrial #fraud #law

#TrumpTower (1290 6th Ave) net operating income was ~$110M then. If it were valued w/a 4.5% cap (per #CushmanWakefield), that would make the bldg worth $110M/.045 = $2.444B.

If a different cap rate was used, as #Trump & #TrumpOrg did — the inexplicable 2.67%, then $110M/.0267 changes the estimated value to = $4.12B--an increase of $1.67B.

The #TrumpOrganization ended up w/a value of $4.19B. They then had to subtract their $950M of debt & attributed 30% to Trump, which gave him a $973M share.

Capitalization rates or “cap rates” are the most popular way to measure a #commercial #RealEstate investment’s #profitability & return potential.
A #CapRate is usually determined using the net income the property is expected to generate. You calculate it by dividing the net operating income by the property asset value. The resulting cap rate is expressed as %.

#CushmanWakefield suggested to #Birney that the cap rate for midtown should be mid-4s. The #TrumpOrg ended up using a cap rate of 2.67%.

Back to the questioning of #TrumpOrg Asst VP Patrick #Birney by #NYAG:

NYAG atty Haren examined comms between the #TrumpOrganization & #CalebMelby, a reporter worked at #Forbes & but now works at #Bloomberg. He worked on Trump’s #NetWorth estimates for @business.

Birney contacted real estate firm #CushmanWakefield for info on #CapRates.

#legal #law #civil #conspiracy #fraud #LetitiaJames #TrumpTrial #Day9