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.
A foreclosure has been filed against SB Associates LLC, which signed the sizable construction loan back in December 2006, as the mortgage wave was cresting.
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.