The 46-story Trump SoHo is now selling its condo-hotel units at about 21 percent below their original asking prices, according to an article by Amanda Fung yesterday at crains.com.

"Hopes for the 391-unit tower crashed during the financial crisis," the article said, "as sales stalled and debts began to come due. After successfully restructuring their original $275 million loan and lowering prices, developers Bayrock Group and The Sapir Organization now hope that buyers will appear. 'The real estate market is improving, but it has a long way to go,' said Julius Schwarz, principal of Bayrock. 'The decrease in our prices will bring out pent-up demand.'"

"As of last Thursday," the article said, "279 units were still unspoken for, including the largest and most expensive - the recently unveiled penthouse suites. Since 2007, only 45 condo units have closed, for a total gross sales figure about $55 million; 67 are in contract. Under the new pricing plan, a 682-square-foot one-bedroom suite is going for $1.646 million, down 22 percent."

"The new pricing represents market reality," said Rodrigo Nino, president of Prodigy Network, which has been the project's marketing firm from the beginning. "We are starting fresh."

Purchasers at Trump SoHo buy fully furnished units and can live in them for only 120 days a year. They earn a portion of hotel revenues, mostly generated from guests who stay in their apartment. Such properties typically attract investors or people seeking a pied-a-terre.

"Construction of condo hotels nationwide boomed until the recession," the article continued, "as many found them the ideal way to bet on rising property values. Since the downturn, many projects in hard-hit markets such as south Florida and Las Vegas have defaulted."

The Trump SoHo - located on the corner of Spring and Varick streets, just beyond the western edge of the neighborhood's historic district - had problems even before construction began, with neighbors complaining about the tower's height, the article said, adding that "once marketing began, the project struggled to sell units as banks balked at financing condo hotels. The developers were sued soon after by their buyers, who accused them of misrepresenting sales activity and wanted out of their contracts."

"When Trump SoHo finally opened its doors last April," the article said, "its hip location and well-known brand - promoted by Ivanka Trump - immediately delivered considerable buzz. (The Trump Organization has a licensing, marketing and management agreement with Bayrock and Sapir.) The hotel boasts 90% occupancy and nightly rates ranging from $299 for a 420-square-foot king room to $808 for a 720-square-foot one-bedroom deluxe suite. It has become a celebrity hot spot, with paparazzi swarming the entrance on any given afternoon or evening."

"In December," the article added, "Los Angeles-based CIM Group agreed to buy a portion of the original $275 million debt and made the developers another loan. Details were not disclosed. The restructuring let Bayrock and Sapir reprice units and allowed more time to sell them. The developers have also partnered with CalCon Mutual Mortgage, which will loan qualified buyers up to 50% of the purchase price."

"It's uncertain how the big condo hotel will do in the altered market," the article said, "but Mr. Nino is optimistic. He traveled to Latin America last week to persuade five potential buyers in Colombia to sign contracts for lower-priced units. For the developers, the bigger battle is yet to be won. 'We successfully opened the hotel, and it is doing phenomenally well,' said Mr. Schwarz of Bayrock. 'Whether we profit from this project remains to be seen.'"