Trump Soho offers deposit refunds for buyers who don’t join fraud lawsuit

New York /
Nov.November 17, 2010 09:26 AM
Donald Trump, Alex Sapir and Trump Soho

The developers of the embattled Trump Soho condominium-hotel are offering to refund buyers as much as half of their deposits if they agree not to join a lawsuit that accuses them of “fraudulent misrepresentations and deceptive sales practices” at the 46-story Spring Street building, according to the Wall Street Journal. Only those buyers who haven’t yet closed would be eligible for the refund, though it is unclear how many have been offered. The lawsuit was filed in August by attorney Adam Leitman Bailey on behalf of 17 buyers of eight units at the 391-unit project, who alleged that the Sapir Organization and Bayrock Group pitched them on a building that was 60 percent sold, although it was later revealed in an offering plan filed with the Attorney General’s office that the figure had been closer to 15 percent. “They must think the fraud lawsuit has legitimacy and that they will have to settle for more than 50 percent,” said attorney Pierre Debbas, whose former client was offered a refund at the building. Or, he said, the refunds could mean that the developers could be planning to convert the entire project to a hotel. He’s not the first to speculate about that outcome for Trump Soho, whose hotel operations have been doing remarkably well, given the financial and legal woes plaguing the condominium portion. [WSJ]


Related Articles

arrow_forward_ios
From left: Rotem Rosen, Zina Sapir, Tamir Sapir, Bella Sapir, Elena Sapir, and Alex Sapir (Credit: Getty Images)
Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Trump nearing $370M sale of DC hotel to Miami investment firm
Trump nearing $370M sale of DC hotel to Miami investment firm
Trump nearing $370M sale of DC hotel to Miami investment firm
Trump’s DC hotel lost $70M during presidency
Trump’s DC hotel lost $70M during presidency, docs say
Trump’s DC hotel lost $70M during presidency, docs say
Homeless shelter operator backs off deal to take over Trump’s Bronx golf course
Homeless shelter operator backs out of Trump Bronx golf course deal
Homeless shelter operator backs out of Trump Bronx golf course deal
Donald Trump and the Ferry Point course (Getty, Trump Golf Links Ferry Point)
Homeless shelter operator to take over Trump’s Bronx golf course
Homeless shelter operator to take over Trump’s Bronx golf course
Trump Plaza New Rochelle at 175 Huguenot Street and Donald Trump (Getty, Anthony22/Wikimedia)
Trump Plaza New Rochelle dumps Trump Org as property manager
Trump Plaza New Rochelle dumps Trump Org as property manager
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...