Wednesday, September 24, 2008

There's the other shoe...Trump wants a loan extension

So, maybe the retail sale is a backup plan. Or maybe it is a potential condition of a loan extension. Who knows?

What we do know, according to Crain's, is that The Donald has asked for a loan extension. And I expect he'll get it. We all know where the condo market is and right now things are not pretty. Often there are conditions on a loan extension such as a change in the debt service coverage ratio, different interest, selling chunks of the project, more name it. But this is a high profile project and I'd be stunned to see the banks say no. Whether there will be some heavy negotiating remains to be seen. Have fun, all you lawyers!

P.S. Donald Jr. says the hotel's doing great; and, by the way, if you buy there it means you get Rex Grossman for a neighbor (nothing personal, Rex, but no thanks).