Facebook
Fark
Digg
Reddit
StumbleReal Estate:
Trump gets financing, analysts cheer loan
Fri, Apr 2, 2010 (3 a.m.)
While the recession continues in Southern Nevada and lenders are leery of loaning money for projects, news that Donald Trump has secured long-term financing for the Trump International has generated some optimism.
Trump said he has received $190 million from German-based Hypo Real Estate Holdings AG without having to put up any money himself. The money helps lower the $560 million hotel’s mortgage payments.
Trump called it a “great sign for Vegas” and hopefully a precursor of what is to come.
That is the sentiment among Las Vegas analysts.
“It sounds like (the lenders) have a positive view of the project and of Las Vegas, which is bigger news,” said John Restrepo, principal of Restrepo Consulting Group. “I am a bit surprised because the condo-hotel market is a bit tarnished right now.”
The reason it’s significant isn’t because Trump received the money, but because it is the first time in a while there has been long-term financing for any major high rise in the Las Vegas area, said Steve Bottfeld, executive vice president of Marketing Solutions, pointing out the exception has been CityCenter.
“It says a lot about the Las Vegas market that the financial industry is finally beginning to see that maybe Las Vegas, while not hitting bottom yet, is close to it. It bodes well for the future of the Las Vegas Strip,” Bottfeld said.
Through the end of February, the 1,282-unit condominium hotel had only closed on 302 units, according to research firm SalesTraq. It had sold most of the units, but has been hurt by the economy and inability of purchasers to obtain financing and close on the deal, analysts said. Buyers realize that condo-hotels can be difficult investments, he said.
“The long-term financing rescues that project from potential bankruptcy,” Bottfeld said, noting the funding will give Trump more time to sell the units.
Trump International has given indications in the past of a willingness to rent out its units as apartments, but Trump said that won’t happen.
Trump said sales have started to pick up in the past couple of months, and he is anticipating that will continue.
Bottfeld said he thinks renting out units would make the project more successful because there is a market for corporate rentals, especially with those who work at the World Market Center.
Shea Homes expands
Private builder Shea Homes announced it has an agreement to purchase the 532-lot Ardiente master-planned community in North Las Vegas. The guard-gated community will be known as Shea Homes at Ardiente.
The previous owner, Centex Homes, shut down the project in 2008.
California-based Shea is opening a temporary sales center in the community’s clubhouse and will debut three model homes midyear.
Shea said it is counting on retirees migrating from California to buy homes at Ardiente.
In other news
• Prudential Americana Group was recognized for having seven of the top 10 sales teams among Prudential Real Estate Affiliate companies in North America in 2009. Prudential Americana’s William Jorgensen was the top selling team in North America with 460 sales in 2009. The other six teams in the top 10 were the Beeten team, the McCollough group, Steve Howell team, Woolston team, Zand Group and Craig Tann group. The seven teams sold 2,624 homes in 2009.
Discussion: 11 comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Superstar Whitney Houston dies at 48
- Two dead after accident in downtown Las Vegas
- Instant Analysis: Debating whether UNLV should continue series with San Diego State
- UNLV can move forward without the burden of losing streak to San Diego State
- A wife’s wisdom shows birth control issue needn’t be divisive
- Vegas oddsmaker expects Adele to have a great night at Grammys
- UNLV makes key plays down stretch to hold off San Diego State 65-63
- Hope and change and … what’s missing?
- Surprise links, negotiated deals addressed by commissioners
- Mitt Romney wins Maine caucuses, CPAC straw poll
Blogs
The Kats Report
Color from scene at Thomas & Mack: We have a wire job! Rebels win, and Louie Armstrong sings!
South Point owner Michael Gaughan's take on 'Vegas Stripped': 'I'll give it an 8' (4 Comments)
Author relishes writing the life story of ‘larger-than-life’ Oscar Goodman (3 Comments)
Elsewhere
Landowner: All roads could lead to Uxbridge casino
Revel reveals smoke-free casino opening
Cirque du Soleil show in Sands China casino to close this month
Meet the woman behind Sheldon Adelson
The Sun
Locally owned and independent for more than 50 years.
"bottfeld said"...who cares what he said, he's never been credible. with schwer gone, restrepo is the best source we have.
As usual Trump puts in none of his own money.
When will people learn that he is a con-artist?
To: Manabouttown
You have that wrong. Trump meant that he didn't have to put up any MORE money to refinance the loan. Unlike a Trump Signature property where Trump would put up his name and marketing power, the Las Vegas Trump International has three profit partners, Donald Trump, Phil Ruffin and Jack Wishna. Donald Trump is a 50% partner and he had to put up substantial cash to acquire the site, substantial cash to secure the loan, and his personal guarantee. Phil Ruffin put up the land (guaranteed by Trump cash)and he put up equal cash to Trump. Jack Wishna created the deal and shares in the profits. Donald Trump has made a MAJOR investment in Las Vegas and has committed to stay and fight out the ills of this economy. Other developers have fled our city, Donald stayed. Say what you want about the man but he is PRO-Las Vegas and we need all the support we can get now.
Trump is a horse's ass.
Bentley69,
Thats what trump would like you to believe. I don't believe he has a dime in the trump International.
Ask the bond holders hes cheated over the years.
I hope the trump International is a complete failure.
PGelsman,
He's not only a horse's ass, he's a self serving, egotistical, megalomaniac horse's ass.
but he has such great hair.
and he has millions of $$$. have you guys?
Ishy: Are you sure? This guy knows how to run the big con. He's only as rich as his next con.
Bentley69 analysis is correct on how this deal was structured. Trump is a promoter and ofcourse he has an oversized ego. But that is what it takes to develop and hustle the financial markets for support. Phil Ruffin is the same, so is Carl Ichan, Adelson and Wynn. What do you naysayers think, it takes 9 to 5 salaried people to create these deals!? It takes people with the guts and brass to make things happen. Yes, it isnt pretty to see, but it is what it takes to do big things. Remember, these guys loose big too!
Some people here are out of thier minds. The high rise condo hotel model has been proven to not work. It will be interesting to see who loses money on this one. I bet it won't be Trump. He is just too smart.