NEW YORK CITY-Bayrock/Sapir Organization LLC, the partnershipdeveloping the Trump SoHo hotel condominium project, hasrecapitalized its debt on the property. The CIM Group has providednew debt financing on the 46-story tower at 246 Spring St,extending all indebtedness on the project; terms were notdisclosed.

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The Wall Street Journal reported that CIM agreed to paydown about $85 million, representing about one-third of the seniorloan held by locally based iStar Financial Inc. Through aspokeswoman, Bayrock/Sapir declined to comment on the WSJreport.

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In a release, iStar EVP Barclay Jones counts his company“pleased to have successfully recapitalized this unique asset. Webelieve the Trump SoHo development team will ensure the long-termsuccess of this irreplaceable asset.”

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The Trump organization, which has an equity stake in the projectthrough a licensing and hotel-management agreement with theBayrock/Sapir partnership, will continue to manage the property asit has since the hotel component opened this past April. Donald J.Trump says in a statement that the recap represents “an homage tothe success of the property, the hotel and its operation and a signof the confidence in the long-term viability of this project.”

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Condo sales at Trump SoHo will continue to be marketed byProdigy International. Rodrigo Nino, Prodigy’s president, says in astatement that the recap will assure prospective buyers that theproject “is financially on stable footing.”

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The debt financing on Trump SoHo marks the second foray intoManhattan this year by Los Angeles-based CIM. In January, itacquired a Park Avenue development site from Macklowe Propertiesfor a reported $305.4 million. The site was once the location ofthe Drake Hotel.

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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.