Trump National Citation - Wall Street Journal

After months of local opposition and legal wrangling, Donald Trump's first California real-estate development, The Estates at Trump National Golf Course in Rancho Palos Verdes, is under construction and selling. Three multi-million-dollar properties changed hands just days after the Jan. 14 groundbreaking at the Southern California coastal development.

Trump's right to build in the region comes only after he sued a local school district over the land (the Palos Verdes Peninsula Unified School District owns 8.5 acres by the 13th hole) and spent $55 million to shore up the oceanfront golf course: Landslides six years ago took out the 18th hole. He also lost a battle with local and state environmental officials to keep the golf course private. The school lawsuit was settled out of court, and now buyers — who will pay a minimum, pre-construction, of $5.2 million for each Mediterranean-style mansion — will share that course with the golf teams from two local high schools. And, in accordance with California Coastal Commission policy, they won't get a private beach.

Trump said that "this property's been through a lot" and that "the golf course had problems." But now it's "safe and sound," he said, adding, "This will be better than Pebble Beach."

The property, Trump said, has already received interest from celebrities Kevin Sorbo, star of the syndicated science-fiction television series "Andromeda," and singer Britney Spears. Sorbo said he and Trump discussed the new development while golfing in Lake Tahoe last summer and that he plans to travel to the development "in a few weeks" to look at properties.

Rancho Palos Verdes, Calif., a coastal area of Los Angeles County, is among the priciest regions in the state, with the median price of a new home $1.17 million, according to the California Association of Realtors. Trump paid $27 million for the 260-acre property in 2002.

Los Angeles businessman John W. James bought the first home at the Estates, paying $6.95 million for a 7,019-square-foot, four-bedroom estate slated to be finished next year. The location was a draw, he said, as was the fact that "it has the Trump name on it."

James added that he's betting the developer's brand name will insulate the property against a real-estate recession. Another selling point, he said, was that the property's architect, Robert Earl (who has designed homes for Madonna and Sylvester Stallone), will hold individual meetings with buyers to customize the properties.

James said he's adding a wine cellar, home theater, gym and soundproof meditation room.