Trump’s Fort Lauderdale Mistake!

Trump’s Fort Lauderdale Mistake!

Trump's Fort Lauderdale Mistake!
For the last few months it's seemed that real estate has started a slight upswing in Florida. But here's a situation that isn't going to improve any time soon! Having sold his brand license to many a luxury building that appeared to have all the trappings of glamour that The Donald demands, even he is feeling the crunch in his pick of this one. It may be his worst debacle yet! By all accounts, his reputation is definitely taking a hit with the presale buyers of this building who are badmouthing him to anyone who will hold still long enough to listen.

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Formerly named the Trump International Hotel and Tower before the shutdown of construction, the building was built on the site of two 1950's hotels and was in the company of two new luxury buildings, the W and the Hilton Fort Lauderdale Beach Resort, which are now up and running. The Trump International was to have consisted of 298 hotel-condo units; 172 studios, 80 1-bedroom units, 43 2-bedroom units and 3 penthouses. It also advertised fine dining, pool, spa and a health club. In November of 2010, Trump saw the writing on the wall and pulled out. Now, facing a default on a $165.6m loan, including $25m in interest, the boarded building will be going to court ordered foreclosure auction on March 14th.

So what's going to happen to the more than 100 people who put down 20% on these expensive digs, trumped up, so to speak, by the name Trump that skyrockets the cost up from a non-Trump building? Since the bank holding their money went under and only some funds were transferred to another bank, not to mention the snarl of years worth of future legal paperwork involved, let's just say it isn't looking good, though they may eventually realize half their deposits returned. Even worse, the investor who takes the building at auction will likely turn it into a hotel, thereby avoiding the condo hassle hanging over the present legal structure of the building.

Probably the only thing one can say for sure about this unsavory state of affairs, is that The Donald won't be going to Ft. Lauderdale for Spring Break this year!

Source: www.palmbeachpost.com