Trump In Trouble Again Over Licensing Condo Projects

by Deidre Woollard (RSS feed)
Mar 18th 2010 at 1:02AM

We recently looked at Donald Trump's troubles south of the border but he's not doing so well in South Florida either. The Sun-Sentinel has a piece taking a look at Trump's projects in the area and the news isn't good. The Trump International Hotel & Tower Fort Lauderdale beach is facing foreclosure. The South Florida Business Journal reported that the condo-hotel project was hit with a foreclosure action last week. The 298-unit project has already been hit with lawsuits from buyers seeking refunds. Like the Baja project we mentioned last week this is another of Trump's licensing deals and some buyers have said they were misled about Trump's role in the project.

Corus Construction Venture filed a foreclosure action March 11 against developer SB Hotel Associates over a $139 million mortgage issued in 2006 by Corus Bank, which failed in 2009. We heard about Corus Construction Venture in January when we learned that one of Phoenix's tallest towers, 44 Monroe is facing a trustee's sale in April and owes Corus Construction Venture $86.8 million. Last year Corus Bank collapsed and was taken over by the FDIC. It owns a 60 percent stake in Corus Construction Venture and the rest is owned by private equity consortium led by Starwood Capital Group an investment firm run by Barry Sternlicht, the founder of Starwood Hotels & Resorts.

Construction started on the Fort Lauderdale project in 2005. The lavish project was designed by architect Michael Graves and was to include a health club, spa, restaurant and more. It was scheduled to open last year. Corus Construction will have the option of either holding onto the project until the market is better or possibly trying to make more immediate money by converting it into a regular hotel and buying out the existing condo unit owners.

Another project in Fort Lauderdale, the 95-unit Trump Las Olas which we wrote about in 2006 never even got off the ground. The only Trump project thriving in South Florida is the Trump Hollywood in Hollywood, Florida. The project opened last year and the 41-story tower includes 200 condos at prices starting at $1.3 million.

Tags: donald trump, florida real estate, florida real estate development, south florida real estate, trump fort lauderdale, trump hollywood, trump las olas, trump licensing

Filed under: Real Estate Developments

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Reader Comments (Page 4 of 4)

Chuck Mar 19th 2010 5:00AM

This is just one more problem that we have because the government did not do there job correctly. I still say that if we put it to a vote with the American people each time money leaves this country or is going to be spent on anything, we would be better off. The government has no clue what the working class goes through every day. They won't even look into our problems must less fund them but they have millions to give to corporate America and we pay that bill too. I hope and pray that all the people in this country have a plan to take care of their love ones, because the government will not be there for you in time of need. Make sure you have enough food, water, medical kit, gas for your car, etc. Just remember one thing, your family is all you have, so protect them by stock piling food, water, medical, etc.

Jay Love Mar 19th 2010 5:31AM

Trump has always used other peoples money, this is why he is a success! first he used his fathers name and letter of credit from the banks on his very first projects, they were a success despite his youth so this was the first ego boost Trump got....after that he was able to build off that buy still using other peoples money. Trump never really puts anything he owns, or money he has into anything, that is his secret!! after he built a name for himself he made relationships with the Chinese and has since used their money from Hong Kong and other places to invest in pricey New York real estate and projects. these always made money, (usually) and so he can always get investors to back him even despite some very bad business mistakes like the casinos in Atlantic city? and now he has expanded his building using other peoples monies to other places in the USA outside of NYC, such as Califonria and Florida, anyplace where he can hawk so called upscale living and liesure to people with a little bit of money that want to say they live like Trump? and most of these projects you every see of hear about are not even Trumps doing, they are other builder/developers who pay to use Trumps name on the face of the project, pay his company for management and financing/consulting fee's. so before they ever break ground he gets a big fat check right off the top of the financing and or the seed money the developer plumps down for fee's, etc....then he makes a percentage off the groos sales of the units as it sells off. but when or if it fails...like Ft. Lauderdale, Tampa, and these other places, if you have paid a deposit on a condo for a Trump project, don't go looking to Trump to reimburse your money because he isn't on the hook for it at all. he will say, "look I took a hit also?" "don't look at me." there were hundreds of people and investors who took a huge hit here in Tampa, Fl when that condo project never materialized, can you believe the stupidity of people? to pay huge deposits and in some cases the full price for a condo that has yet to even be built?? they are buying off an artists rendering/ photo/scketch? so I don't have any pitty for them in the least!!

Jay LOve Mar 19th 2010 5:44AM

Chuck is so right....the only thing any of use have is our family and one another, money can come and money can go, there is a good chance money as we know it may go away very soon and very badely?? if you at all can do it and most people can do it if they just want to, we all need to put aside those things you will need when trouble hits the fan. food, water, emergency supplies, fuel, alternate fule sources, like soler panels to produce some emergency current for radios and such. flash lights, radios, two ways, a generator. meals ready to eat woud be very smart. and buy enough to sustain each person you will be responsible for per day, at least until you can get around the first signs of trouble, and or begin to grow or hunt for your own food sources? oh and I almost forgot, most importantly guns and ammo, as many and as much as you can personally afford to keep on hand. keep in mind it takes ammo to run a gun, be it a pistol or a rifle. so put back enough to last you. one can never have enough weapons, or other emergency items, remember you can sell, barter, or trade ammo and weapons if you have more than you need? guns and ammo will be like gold if it really gets bad, and folks, even though we don't like to think about it, it ma very well come soon, or one day?? don't be caught with your pants down and your di_ck in the wind...be responsible and think of how you and yours will survive if a hurricane comes, or a war, or government collapses, etc....I gaurentee you every time in history when a bad event happened, the people didn't see it coming till it was too late?? protect yourself and your loved ones!!

GtAmerican Mar 19th 2010 9:57AM

This headline and also the article is misleading.

Trump has indeed developed a Brand Name in Commercial Real estate. As such, he has licensed his name for use on projects that will benefit from garnering a greater price since the project has a TYrump Brand name.

Trump has not guaranteed any of the loans and does not have capital at risk.

THEREFORE TRUMP IS NOT IN ANY TROUBLE.

Noel Freedman Mar 21st 2010 1:53PM

David Trump shakes off bankrupsey like he does dandruff through his hair peice. While he laughs and does sass to his detractors: "Sticks and stones will break my bones, and whips and chains excite me; so tie me up and throw me down; show me how much you like me!"

gposner29 Mar 21st 2010 5:12PM

How does this man avoid prison?

twofirst1 Mar 22nd 2010 1:12AM

I just left Ft Lauderdale last week The 3rd floor of the marriot parking lot building used to have 2 night clubs there and the front had a resteraunt now all,that is there is Hooters second floor has a club just under hooters and there is a club on the front beach side that is still functioning. I have been going there for the last 15 years.

twofirst1 Mar 22nd 2010 12:58AM

As far as Mr. Trumps is concerned my point is simple he has lots of property and not so many people that can afford to buy much. Right now most people are feeling the crunch and are being very cautious. selling off florida property so that they can consolidate and pay down mortgages in other staets. like second homes and the sorts Mr Trumps has to create jobs inexpensive jobs that will survive with the times in order to survive this economy. Most people are being real cautious how the spend thier money and are just trying to stretch thier money. fix up the car for as inexpensive as they can and run it for a few more years. When I was there the beaches were deserted along with the clubs about 7 or 8 years ago you couldn't even walk anywhere in the hooters building nor the beach nor any other clubs in that entire building.

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