Trump SoHo lender recapitalizes loan

NEW YORK CITY The lender for the Trump SoHo condo-hotel project announces new financing, paying down about a third of the senior loan and adding a new mezzanine loan for the financially troubled development.

CIM Group has agreed to eliminate about US$85 million of the senior loan held by iStar Financial and will provide a new mezzanine loan, The Wall Street Journal reports.

The project’s developers, Sapir Organization and Bayrock Group, hope the debt reduction helps generate confidence in potential condo buyers, who have been fewer than anticipated. Only about 30 of Trump SoHo’s 391 condo units have been sold.

The deal does not impact management of the 46-story property, which is provided by Trump Hotel Collection under a licensing agreement. The luxury condo-hotel debuted in April.

The deal with iStar, a real estate lender that is working hard to stave off bankruptcy, is the second New York City investment by CIM this year. In January, CIM took control of one of the site of Manhattan’s former Drake Hotel.