The Trump Soho hotel-condominium in New York City is facing foreclosure with lender CIM Group planning to take control of the building in advance of an auction.
Brokerage Eastdil Secured will auction the remaining condos, which have been slow to sell since the property opened in 2007, according to published reports.
The 46-story tower was developed by the Sapir Organization and Bayrock Group, and the Trump Organization only manages the hotel and licenses its name to the property.
Sapir Organization President Alex Sapir said in a statement that the “current structure” of the property “does not make economic sense for ownership” and that his firm may someday seek to repurchase the hotel.
The 391-unit building has recorded about 122 completed deals, according to appraiser Miller Samuel Inc. Fifty-eight units are currently listed for sale, with prices ranging between US$915,000 for a studio to US$50 million for a 10,000-square-foot (929-square-meter) presidential suite.
“The challenge of this building is a very high price per square foot paired with extremely high carrying charges related to the hotel services they were trying to market,” said Miller Samuel President Jonathan Miller, according to Bloomberg News.