Developers of the Trump SoHo hotel- condominium building in lower Manhattan "substantially paid down" the debt owed on the project to iStar Financial Inc. after receiving a new loan from CIM Group, according to an article at businessweek.com today by Oshat Carmiel.
The developers, Bayrock Group LLC and the Sapir Organization, said in a statement that "all project indebtedness has been extended as a result of new debt financing."
The 391-unit Trump SoHo offers condos for sale that may only be used by their owners for 120 days in a calendar year, the article said, adding that "for the rest of the time, they're offered for rent as a hotel room. Owners can share in the rental revenue."
In September, the article continued, 'iStar offered $20 million more in financing to the Trump SoHo in a mortgage restructuring. It had already lent more than $250 million to the project, the Wall Street Journal reported in September.
The 391-unit development reportedly has recorded about 32 sales.
The Trump Organization, which has managed the hotel since it opened in April, will continue as manager, according to Bayrock and Sapir. The article said that Donald Trump said that the debt arrangement is "a sign of the confidence in the long-term viability of this project."
"IStar, the New York-based commercial real-estate lender seeking to avert a bankruptcy filing next year, had about $2.8 billion of non-performing loans as of Sept. 30. It may seek to refinance loans with a new $1 billion to $2 billion credit line as an alternative to seeking bankruptcy protection, three people with direct knowledge of the matter said on Nov. 11," the article added
A recent article by Craig Karmin at wsj.com noted that the CIM Group of Los Angeles was in advanced talks to buy the debt of the 46-story condo-hotel and that the negotiations to buy the loan come less than a year after the Trump SoHo opened in April at Spring and Varick Streets.
"If CIM buys the debt, the deal would mark that second high-profile Manhattan acquisition by the firm in 2010. In the first deal, it took control of one of the most prominent development sites in Manhattan, which had been the location of the Drake Hotel. CIM formed a partnership with Harry Macklowe, the financially troubled developer who had controlled the site. That partnership, in turn, paid off the debt holders who were threatening to foreclose," according to the article at wsj.com.
The developers, Bayrock Group LLC and the Sapir Organization, said in a statement that "all project indebtedness has been extended as a result of new debt financing."
The 391-unit Trump SoHo offers condos for sale that may only be used by their owners for 120 days in a calendar year, the article said, adding that "for the rest of the time, they're offered for rent as a hotel room. Owners can share in the rental revenue."
In September, the article continued, 'iStar offered $20 million more in financing to the Trump SoHo in a mortgage restructuring. It had already lent more than $250 million to the project, the Wall Street Journal reported in September.
The 391-unit development reportedly has recorded about 32 sales.
The Trump Organization, which has managed the hotel since it opened in April, will continue as manager, according to Bayrock and Sapir. The article said that Donald Trump said that the debt arrangement is "a sign of the confidence in the long-term viability of this project."
"IStar, the New York-based commercial real-estate lender seeking to avert a bankruptcy filing next year, had about $2.8 billion of non-performing loans as of Sept. 30. It may seek to refinance loans with a new $1 billion to $2 billion credit line as an alternative to seeking bankruptcy protection, three people with direct knowledge of the matter said on Nov. 11," the article added
A recent article by Craig Karmin at wsj.com noted that the CIM Group of Los Angeles was in advanced talks to buy the debt of the 46-story condo-hotel and that the negotiations to buy the loan come less than a year after the Trump SoHo opened in April at Spring and Varick Streets.
"If CIM buys the debt, the deal would mark that second high-profile Manhattan acquisition by the firm in 2010. In the first deal, it took control of one of the most prominent development sites in Manhattan, which had been the location of the Drake Hotel. CIM formed a partnership with Harry Macklowe, the financially troubled developer who had controlled the site. That partnership, in turn, paid off the debt holders who were threatening to foreclose," according to the article at wsj.com.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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