The Real Deal New York

CIM Group wins Trump Soho in bankruptcy auction

Trump Management will continue to run the property, but doesn't own it

November 21, 2014 10:30AM

From left: Donald Trump and the Trump Soho

From left: Donald Trump and the Trump Soho

CIM Group, a real estate investor, has won a foreclosure auction that allows it to take control of New York’s Trump Soho hotel and condominium.

CIM Group, also the co-developer of 432 Park, served as a lender to developers the Sapir Organization and Bayrock Group, who sold less than a third of the 391 units in the building, according to the Wall Street Journal. Due to the slow sales, the developers defaulted on the junior loan in June, according to the Journal.

Buyers of the units at 246 Spring Street can use the apartments for up to 120 days a year, according to the newspaper. The rest of the time, they serve as hotel rooms.

Trump Management will stay on as operator of the building, but doesn’t own it.

“A luxury condo-hotel in New York is not a feasible business proposition,” Brian Halberg, a real estate attorney with Squire Patton Boggs, told the newspaper. “It’s too expensive to build, too expensive to operate, and too expensive for purchasers.” [WSJ] — Claire Moses

  • patmgee

    yayyy the only winner is trump in this

  • DTNYC

    What???? Another failed Trump development??????

  • jo

    How is he so rich and so bankrupt at the same time ??????? he is soon going to lose his name branding money because everything he touches seems to fail.

  • Spectator

    He licenses his brand. It’s easier than developing yourself.

  • David Lohr

    Donald Trump is the greatest developer in New York since Julius Tishman

  • realtyreality

    trump wins in this – he got paid upfront for a license of his name and gets ongoing management fees. S.H.R.E.W.D

  • Hasan

    The statement, “A luxury condo-hotel in New York is not a feasible business proposition” by Brian Halberg is interesting. Especially with more luxury condo-hotels being built.

  • irobot

    not sure I’d call this a win for CIM…prob no other bidders

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