The new embassy is certainly located in a less-central and less-prestigious location.
Mr Trump blamed the cancelled visit on the "off location" of the new embassy, which is moving from Grosvenor Square in Mayfair to Nine Elms, south of the Thames.
The new embassy on the South Bank is a veritable fortress set back at least 100 feet (30 meters) from surrounding buildings - mostly newly-erected high-rise residential blocks - and incorporating living quarters for the US Marines permanently stationed inside.
"The US chancery in Grosvenor Square had aged beyond its ability to be improved to current security and life safety standards without extensive investment in infrastructure that would require appropriated dollars", he said.
The US embassy in London has responded to US President Donald Trump after he claimed the move to a new location in Battersea was a "bad deal".
London Mayor Sadiq Khan, however, said that the USA president cancelled his trip in fear of protests.
Downing Street has accused Jeremy Corbyn and Sadiq Khan of jeopardising relations with America for telling Donald Trump he is not welcome in Britain, after the USA president called off a planned visit to London in the face of likely mass protests.
London Mayor Sadiq Khan, with whom Trump has butted heads frequently, responded positively to the news that the president would not be visiting.
Although the decision was not made under Obama, Trump is correct to say that the sale of the embassy was completed during the Obama administration.
"Vauxhall is a vibrant and important part of London and home to many businesses", May's spokesman Max Blain told reporters on Friday.
"The invitation for a state visit has been extended and accepted", the official said.
The mayor, a member of the main opposition Labour party, said there would have been "mass peaceful protests", and that it had been a "mistake" to invite him.
"Many Londoners have made it clear that Donald Trump is not welcome here while he is pursuing such a divisive agenda", Khan said on Friday.
Trump's statement further irritated London as many people and government officials asked May to withdraw her invitation to Trump to pay a state visit.
One prominent British Trump fan suggested he may have been looking for a good excuse to call off a visit. But Foreign Secretary Boris Johnson blamed Khan and Labour Party leader Jeremy Corbyn for discouraging the USA leader from coming.
"We are still working with our United Kingdom allies to find a date for a visit for the invitation that was offered and accepted, " she said Friday.
Johnson tweeted: "The US is the biggest single investor in the United Kingdom - yet Khan & Corbyn seem determined to put this crucial relationship at risk".