Trump International Hotel in Fort Lauderdale Faces Foreclosure
Even The Donald’s name couldn’t save the Trump International Hotel and Tower – Fort Lauderdale.
Palm Coast, FL – March 16, 2010
South Florida Business Journal – by Brian Bandell
Even The Donald’s name couldn’t save the Trump International Hotel and Tower – Fort Lauderdale.
The ambitious condo-hotel project became the latest fatality of the economic downturn when it was hit with a foreclosure action late last week.
The 298-unit beachfront project, which has yet to open, has also been the target of lawsuits filed by disgruntled buyers seeking refunds.
One of those lawsuits alleges they were misled about Trump’s involvement. Although he licensed his name to the hotel, he is not among the developers.
Toby’s Commentary: The financial viability of condo-hotels is questionable and financing for units practically unavailable.
Question about Condo Hotels
Toby, I agree, COndo Hotel financing is done for now. When do you see it picking up again?
WC
Reply to William
I’m not sure that condo hotels well ever come back. The financial model just doesn’t work for the owner in most cases. Add to that the risk of the operator favoring one (owned by them, a partner, or a friend) unit over your unit. I have copy of an email instructing staff to favor one specific unit owned by an employee of the operator. But absent hard evidence such as this email, favoritism is hard to detect and prove.