(Read more on the multifamily market.)

|

CHICAGO-Donald Trump toured the construction of the TrumpInternational Hotel and Tower Thursday and admitted that sales haveslowed in the past couple of years. There have already beencondominium sales of more than $600 million, Trump said at a pressconference on Thursday afternoon.

|

"The housing market in Chicago is not a very strong market,"Trump said at a press conference Thursday afternoon. While thehousing market is strong in New York and Los Angeles, "In Chicago,certainly the market has not been great and that is why we arekeeping our pricing at this level."

|

The 92-story tower will have a total of 2.6 million sf and willbe 1,362 feet tall when completed. It is being touted as thetallest reinforced concrete building in the world. Trump says heoriginally planned 150 stories, but scaled back the plans afterSept. 11, 2001. He then considered adding a few floors to thebuilding and a spire to make it the tallest building in the US, but95% of buyers did not want it, Trump says.

|

The tower will have 339 hotel condominium units with studio,one- and two-bedroom suites with costs ranging from $850,000 tomore than $3 million. There are also 486 residential condominiumunits from studios to five-bedroom penthouses that are priced from$580,000 to more than $9 million. Currently, about 78% of the hotelunits are sold and 80% of the residential units are sold, directorof sales Tere Proctor told GlobeSt.com.

|

Most purchasers of the hotel condominium units have been fromChicago, but there have also been some international purchasers,Trump says. "We are really just starting to see internationalclientele," he says. The tower will open in phases with the hotelportion to open this December. There has been a lot of interest inweddings, he adds.

|

Trump says he expects for the hotel to be successful, especiallyif Chicago is chosen for the site of the 2016 Olympics. If Chicagois chosen, "that is good for hotel people like us and it is goodfor real estate in Chicago. That would be a great boost forChicago," he says.

|

There will also be 90,000 sf of retail. "I think of all aspectsof the building, the thing that we have had the most response onhas been the retail," Trump says, adding he will not name retailersfor about six months to a year. "I do not like talking about theirnames until they sign, but we have many of the biggest nameswanting to lease retail space at Trump International," he says.

|

Although there is currently a housing slump, Trump expects thetower to be successful in part because he does not think there willbe more large condominium developments constructed. "I do not see alot of things being built in terms of the residential market inChicago, because I do not think the lenders in Chicago will bethere based on the fact that the market is not very good. And, thatwill take care of demand," he says.

|

The Chicago Spire, Trump believes, will not be constructed. "Ithink it is an impractical building and I do not think thatlocation can get the kind of rents. I think the construction costswill be so high that, unless somebody wants $400 million or $500million, it cannot be built," he says.

|

Now that people are seeing construction progress for the TrumpInternational Hotel and Tower, and can see a portion of thebuilding, there has been an increase of interest for the units,Trump says. "When we first opened and showed the beauty of therenderings and everything else, obviously we sold a tremendousnumber of units at the early stage. Sales slowed down about a yearago, following the general housing market in Chicago," he says.

|

"About a month and a half to two months ago, (there have been) atremendous numbers of inquiries because they are seeing howbeautiful the building is." Trump says there has been "some salesbut an explosion of calls."

|

There will be a 1.2-acre park and 1,000 indoor parking spaces.The building will also have 20,000 sf of multifunction and boardrooms, a restaurant, grand ballroom with 25-foot ceilings and a spaand health club. The architect for the project is locally basedSkidmore, Owings & Merrill.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.