Toronto’s Trump Tower to be sold following low occupancy rates

Toronto’s Trump Tower to be sold following low occupancy rates

TORONTO — The world has to wait another five days until the U.S. presidential election to see whether Donald Trump is a winner or a loser. But in Toronto, the outspoken Republican nominee may already have lost in a big way.

According to Huffington Post Canada, Toronto’s Trump International Hotel and Tower went into receivership this past Tuesday after building developer and owner Talon International defaulted on a $301 million loan last year.

JCF Capital ULC, which owns the debt, filed for receivership in order for the company to recover its investment. It will trade its debt for ownership if it’s not satisfied with any offers from potential buyers.

The tower has encountered several major hiccups since its debut. People who invested in hotel units were told to expect occupancy rates of 55%, wherein reality rates only reached between 15-45%. Politico reported that less than half of the condos have been sold, with average room rates falling well below expectations.

Last year, Toronto Mayor John Tory also demanded action following reports of the tower’s unstable antenna.

In addition, during the height of Trump’s controversial run for the U.S. presidency, Talon tried to remove the Trump name from the tower. The Trump Organization went to court to stop that from happening.

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