Trump’s Name May Not Stay on Toronto Tower as Marketing BeginsBy
Suggested price is at least $222 million, according to e-mail
65-story building in financial core awaiting approval for sale
Trump International Hotel & Tower in Toronto is being pitched for sale with a suggested price of at least C$300 million ($222 million) though there’s no guarantee the U.S. president-elect’s name will stay on the building.
CBRE Ltd. is launching the marketing process for the 65-story hotel and condominium building in the city’s financial core and says the Trump name may or may not stay on the building after it’s sold, according to an e-mail sent to potential buyers this week.
JCF Capital ULC, the closely held U.S. firm that holds the debt on the property, filed in October to sell the building to recoup funds after developer Talon International Inc. defaulted on debt payments. JCF Capital, with investor Jay Wolf as one of its backers, has said in court documents it would also bid for the property using the C$301 million construction loan on the property it purchased earlier this year.
“It’s business as usual and the building is being marketed as a Trump-managed building," said Wolf, founder of real estate and private equity investor Juniper Capital Partners LLC, which specializes in distressed assets, said by phone. He also said that CBRE had been retained by the receiver FTI Consulting.
The Trump Organization, which licenses its name to the building and manages it, didn’t immediately respond to requests seeking comment on Thursday, which is a holiday in the U.S.
“CBRE cannot speculate on the prospective intentions of any future owner,” Bill Stone, executive vice president of CBRE’s Hotels unit, said in an e-mail. The brokerage confirmed it’s been retained by the receiver to market the property for a sale, subject to court approval. The building is now still managed by Trump Toronto Hotel Management Corp., he said.
The Toronto tower faced issues before it even opened in 2012, from construction delays to lagging sales of the luxury residences, dozens of lawsuits and most recently the developer and other condo owners seeking to remove Donald Trump’s name and management firm from the property.
Up for sale is the five-star hotel, with 211 unsold hotel units and 74 unsold condos, all owned by Talon, according to court documents. The transaction would also include several parking spots, a spa, and the Calvin Bar on the ground floor.
Many foreign funds have shown interest in potentially purchasing the tower already, including InnVest Real Estate Investment Trust owner Bluesky Hotels and Resorts Inc. and Hong Kong-based Great Eagle Holdings Ltd., according to people familiar with the talks.