No one wants to buy the Trump Soho's condo-hotel units, so they may just be abandoned altogether. Bloomberg reports that CIM Group, which acquired the hotel in September through foreclosure (because of the unsellable condos), is "stepping away" from marketing the unsold units. The building's managing director said that they are considering turing the remaining into permanent hotel rooms. Currently, two-thirds of the 391 units have not found buyers. Sales started in 2007, and the tower, located at 246 Spring Street, opened in 2010. Under the condo-hotel rules, buyers are only allowed to use their units for 120 days per year, and they are rented as hotel rooms the rest of the time, with owners sharing the profits.
Currently, StreetEasy shows 17 active listings, including a $50 million penthouse, which has been sitting on the market since December 2013. Four listings have recently had their asking prices reduced.
Jonathan Miller told Bloomberg that repurposing the building as a "straight-up hotel" would "make a lot of sense," given the property's zoning restrictions (it can't go fully residential) and the fact that New York is bursting with tourists. The Trump Organization manages the hotel and licenses its name to the building, but the company and the Donald do not have an equity stake in it.
CIM Group, which took over the property from the Sapir Organization and Bayrock Group, is also considering a renovation of the hotel, including a makeover of the common spaces and guest rooms, plus adding a second restaurant and retail space. Rooms average more than $500 per night.
· Trump Soho May Abandon Condos to Operate Mainly as Hotel [Bloomberg]
· Trump Soho Heads to Foreclosure Due to Unsellable Condos [Curbed]
· All Trump Soho coverage [Curbed]