A former Trump family real estate jewel has been lost to foreclosure.
CGI Merchant Group, who paid the Trump family $375 million for its leasing rights to the Waldorf Astoria Washington DC two years ago, lost the rights to a foreclosure action this week, the Wall Street Journal reported.
The Miami-based investment firm defaulted on its $285 million loan in 2023, the Journal reported based on information from the lender. The Trump Organization sued CGI earlier this year when CGI defaulted on a $28 million loan that the previous owner had extended.
BDT & MSD Partners told the Journal it “actively engaged with CGI in a constructive manner” to repair the default, even granting a 45-day extension of the foreclosure date.
CGI reportedly is not giving up on regaining its exclusive leasing rights to the Hilton-owned property.
A spokesperson for CGI told the outlet, “We are not done fighting for the Waldorf Astoria,” and indicated they are still in “intense discussion” with the lender with a “finalized capital solution” on the table.
However, BDT & MSD said it will hold onto the rights, according to the outlet. Hilton will continue to operate the hotel.
The Trump Organization reportedly never owned the property, the site of the old Post Office a short distance from the White House, but leased it from the federal government, with lease extensions close to 100 years. The spot was a popular meeting place during Trump’s presidency.
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Trump sold the leasing rights in 2022 to CGI for $375 million, a price that was well above other offers from some of the most experienced and deepest pockets in the lodging business, including Marriott and Hilton, the outlet reported.
A Hilton spokesperson said, “It remains business as usual at the Waldorf Astoria Washington DC.”
This comes at the heels of other foreclosure troubles in Florida facing CGI this year.
— Christina Previte