TORONTO: Trump Tower Nears Debt Auction

The Toronto Star reports:

Investors who want a piece of the Trump name may now have their chance. The Trump International Hotel & Tower in Toronto is likely to hit the market as the owner of debt on the property seeks a sale. JCF Capital ULC, a closely held firm, recently bought the construction loan on the 65-story hotel and condominium building, and claims developer Talon International Inc. and related companies defaulted on making payments since last year.

JCF Capital is seeking a court-supervised sales process for the property to recoup the outstanding $301 million on the debt, according to court filings made Tuesday under Canada’s bankruptcy and insolvency act.

Lawyers representing JCF Capital and Donald Trump’s Trump Organization, which licensed its name to the building and manages it, didn’t immediately respond to requests seeking comment. Jay Wolf, one of the operators of JCF Capital, declined to comment. Wolf also is founder of Delaware-based real estate and private equity investor Juniper Capital Partners LLC, which specializes in distressed assets.

The court filing is the latest in the decade-long saga of the building, Trump’s first branded hotel in Canada. Since construction began in 2007, the tower has been subject to lawsuits against Donald Trump’s firm and Talon from investors who say they were duped; a court battle to end Trump’s management agreement; and protests after the U.S. presidential candidate made comments about Mexicans, Muslims, and women during his campaign.

Earlier this year, Talon attempted to sell the property after defaulting on the loan, originally given by Raiffeisen Bank International AG in 2007, the court documents show. JCF Capital acquired the loan on Oct. 3 and sent a notice to Talon twice this month asking for repayment.

A Russian billionaire is the property’s primary owner. Ivanka gushes about the building in the 2013 clip below.

(Tipped by JMG reader Janice)