The Trump International Hotel and Tower has been off our radar for a while, but yesterday’s Wall Street Journal focused our attention on the project.
The Journal reported that Donald Trump, flush with cash, has bought out the junior creditors on Trump Tower, whose loans originally totaled $130 million, for $48 million.
According to the Journal:
The latest deal represents a vote of confidence by Mr. Trump in the project, which has been hurt by weak hotel-condo sales and falling prices, and caused years of friction between Mr. Trump and lenders.
He is betting that demand for high-end Chicago condos priced for more than $1 million each will rebound strongly.
A while back Joe Askins sat down with Coldwell Banker’s Jenny Ames for a fascinating look at the convoluted pricing at Trump Tower, the “underground” market in units, and Trump’s difficulties in competing with resales in his own project.