Trump Hotel Running Into Trouble

By Marcus Gilmer in News on Oct 30, 2008 6:25PM

It seems there's trouble brewing for Mr. Trump's new hotel, the supposed new "jewel" of the Chicago skyline. According to the Wall Street Journal:

So far, Mr. Trump has lined up buyers for a bit less than $600 million of condo units and condo-hotel units in a residential market that has virtually seized up. Yet he owes lenders as much as $1 billion when the loans are due, according to public records and several people familiar with the project. He has closed around $200 million in sales so far, with roughly $380 million still in contract. The retail portion of the giant building is for sale, at a time of rising vacancies for retail space in Chicago and one of the worst eras for retailers in years.

Yikes. The story runs down some of Trump's trouble with specific loans and how he's scrambling to make sure he's covered as this time around, Trump isn't operating with partners; he's going to sink or swim on his own.

Another bit of news on the tower: the installation of the spire atop of the building has been delayed for the second time. Originally scheduled to happen last weekend, the installation was to happen this weekend instead. But several safety concerns have pushed it back to mid-November at the earliest. One of the reasons is this weekend's "boat run" when owners move their boats from the harbor to storage locations for the duration of the winter. Brian Steele, a spokesman for the city's Department of Transportation, said, "The Coast Guard doesn't allow lifts for construction over an active navigable waterway without the river traffic being halted." The tentative new dates for the installation are November 15 and 16.

Image of Trump Tower by JOE M500