When more than two-thirds of a building's units languish on the market, that's never a good sign, and the Trump Soho has sold less than a third of its 391 condo-hotel units. Now the Journal reports that the development's lender, CIM Group, is taking control of the building through a foreclosure and will auction off the property. The unsellable condo-hotel units, which can only be used by owners for 120 days per year, show that the property never really recovered from the financial crisis.
Located at 246 Spring Street near Varick Street, the Trump Soho opened in 2010. Donald Trump's company manages the hotel and has a licensing agreement with developers the Sapir Organization and Bayrock Group, but Trump doesn't have an equity stake in the property. When owners are not using the condo-hotel units, they are rented as hotel rooms for which the owners and the developers share the profits. These developments "proliferated" during the boom, but interest has all but disappeared since the downturn. However, all parties involved in the Trump Soho think it might still have a future as a condo-hotel.
Sapir's founder told the Journal that "the current structure does not make economic sense for ownership," but also noted that they could possibly repurchase the hotel "at an appropriate time" with Trump and Bayrock.
Trump doesn't seem too concerned with all of this, telling the Journal that the foreclosure is "a situation between the lender and the owner," and said that they will continue to manage the hotel, which "is doing extremely well."
· Trump SoHo Hotel Lender Plans to Put Property Up for Sale [WSJ]
· All Donald Trump coverage [Curbed]
· The 18 Essential New York City Hotels [Curbed]
· All Trump Soho coverage [Curbed]
Photo via Trump Soho