The tallest residential building in Canada's largest city, named for the Republican presidential nominee in "the States," has gone into receivership.
Launched with great fanfare by Donald Trump and his offspring four years ago, only 44 of 118 condo units have been sold. The hotel occupancy rate is low, and room rates for the hotel have fallen by 30 percent, according to court documents.
The Trump Organization does not own the building. It licensed its name and has a contract to manage the property, complete with such services as Trump Pets and a Trump Experience outing. Its management is expected to continue after ownership is thrashed out.
Trump went into a business relationship with developer Talon International, Inc., controlled by Russian steel magnate Alex Shnaider. Shnaider is known for such touches as hiring Justin Bieber to serenade his 16-year-old daughter at her Sweet Sixteen party, Politico reported Thursday.
JCF Capital, ULC, recently purchased the construction loan on the four-year-old building. It claims that Talon International, and related companies, have defaulted since 2015 on making payments.
In court documents, JCF Capitaol says that Talon has been in default since July 2, 2015.
On Thursday, Justice Glenn Hainey of the Ontario Superior Court of Justice named FTI Consulting Canada, Inc., to serve as receiver and oversee sale of the building. JCF Capital will participate in the bidding process for the building, to own it or recoup its $301 million (Canadian) purchase of debt.
The Trump property has been a magnet for controversy even before Donald Trump began running for presidency.
https://www.sfgate.com/news/politics/article/The-65-story-Trump-Tower-in-Toronto-goes-belly-up-10591925.php