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Trump Soho JV in Talks to Rework Debt

NEW YORK CITY-With sales stalled at about one-third the 46-story hotel-condo's 391 units, the developers aim to restructure $350 million of debt, reports the Wall Street Journal.

By Paul Bubny | Updated on March 29, 2010

NEW YORK CITY-Two weeks before its scheduled opening, the Trump Soho hotel/condominium project is encountering turbulence from the still-unsettled residential sales market, and its developers are in talks to restructure about $350 million in debt, the Wall Street Journal reported Monday. The Journal quotes a spokesman for iStar Financial, which is restructuring mezzanine debt it bought from Bank of America for a fraction of its $75-million face value, as saying his company does not plan to foreclose. The project is being developed by a joint venture of the Sapir Organization and Bayrock Group.

According to the Journal, only about one-third of the 46-story tower’s 391 units are in contract, with buying having stalled since the fall of 2007. Additionally, it isn’t clear how many of the sales will actually close following the project’s April 9 opening.

First announced in 2006 on Donald Trump’s hit TV series The Apprentice, Trump Soho does not involve any of Trump’s own money. The Trump Organization’s involvement with the project is a licensing and hotel-management agreement with the developers, giving Trump and his children Ivanka, Eric and Donald Jr. an 18% equity stake, according to the Journal.

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