An unfinished condotel complex in Ft. Lauderdale associated with Donald Trump is facing foreclosure, according to the Sun Sentinel.
Developers reportedly defaulted on the $139 million loan tied to the 298-unit project, known as the Trump International Hotel & Tower.
It wasn’t long before South Florida became one of the hardest-hit areas in the nation, thanks to massive investor speculation and ridiculous appraised values.
Interestingly, the original lender, Corus Bankshares of Chicago, failed last year, which led to a government-arranged buyout led by Starwood Capital.
The group’s Corus Construction Venture now holds the loan on the 24-story Trump property.
The foreclosure suit, which was filed on March 11 in Broward County Circuit Court (the same one where ex-Countrywide boss Angelo Mozilo faces a civil suit), names more than 80 people who put deposits on the unfinished condos.
There are also a number of related lawsuits from disgruntled buyers who want refunds for their 20 percent deposits – studios and one to two bedroom units were originally priced from about $500,000 to more than $3 million each!
Then there’s Trump, who looked to be a developer and partner before things turned south, but now claims his group only licensed its name to the venture.