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The New York Observer

The Uncertain Fate of Trump's Chicago Skyscraper

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October 29, 2008 | 2:57 p.m
<br /> (Getty Images via The Wall Street Journal.)
Getty Images via The Wall Street Journal.

The Trump International Hotel & Tower in Chicago, one of the few projects in recent memory that the Trump Organization has undertaken without partners, was done with traditional Trump bravado. When the condo and condo-hotel project tops out at 92 stories, it will be the tallest new building in the United States.

But oh! The timing! The building is nearing completion during what is possibly the worst market conditions in a decade, and according to today's Wall Street Journal, Trump may soon run into trouble with his creditors:

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.

...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.

Perhaps the most unfortunate aspect of Mr. Trump's Chicago troubles is that he's actually competing against some of his own buyers, some of whom are flipping units for 30 percent less than Mr. Trump is asking.

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