it's always a disaster when a company loses their property through default.
the problem here, more than anything else, is the condo/hotel ownership scheme. talon pre-sold on the basis of inflated income estimates, which were used for sales and to justify the value of the units on the books. talon got a construction loan and built it out on the basis of these far too ambitious projected sales/value, and it never added up, as we see now. the demand for this type of ownership arrangement is low, and the units themselves don't return enough to justify what talon was asking and needed to get, and so, the project is a failure.
it's not clear what the new group could do to get it right. there are condo owners now that would have to agree to a reversion to a more normal luxury condo plan. if they agree, the luxury condo plan would still include the trump people managing the units, unless they were paid off. in that scenario, the new ownership brings a few dozen luxury units (with associated strata costs) to market, pretty risky with the trump name up there, the location and the views. you'd have to be coming in with some room to maneuver (ie. having picked them up substantially below market) for this to work out well.
maybe they just try to convert them all to hotel, buying out the current condo owners. then you're contending with the stigma of the trump name.
it's a mess.
still, a building was built and eventually, someone will figure out the right mix to get make some money out of it.
i'm glad i'm not one of the saps that bought one of the goofy condo hotel rooms though, probably painful for these people even to walk on that street or hear trump speak.
