Wall StreetJournalJournal


According to the Journal, only about one-third of the46-story tower's 391 units are in contract, with buying havingstalled since the fall of 2007. Additionally, it isn't clear howmany of the sales will actually close following the project's April9 opening.


First announced in 2006 on Donald Trump's hit TV series TheApprentice, Trump Soho does not involve any of Trump's ownmoney. The Trump Organization's involvement with the project is alicensing and hotel-management agreement with the developers,giving Trump and his children Ivanka, Eric and Donald Jr. an 18%equity stake, according to the Journal.


Local zoning prohibited the JV from building an apartment toweroffering permanent residence. The developers opted for ahotel-condo model under which owners can only stay there for 120days out of the year, or 29 consecutive days during any 36-dayperiod. For the remainder of the year, the condo units will beoperated as Trump-branded hotel rooms.


By 2013 or 2014, Trump Soho should be able to charge more than$600 a night for a hotel room, Roland deMilleret of hotelconsulting firm HVS told the Journal. But for now,deMilleret said, room rates will be limited to the low- tomid-$400s. "During that ramp-up period, they need to rely on condosales, and that will be challenging," he said. Click here for the complete article.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.