Miami-based CGI purchased the lease rights from the Trumps for $375 million

As Donald Trump’s real-estate empire comes under pressure from a $355 million civil-fraud verdict, one of its most recent sales looks particularly well timed.

The Trump International Hotel in Washington, D.C., was a favorite Republican meeting spot during the Trump presidency, attracting lobbyists, lawmakers and others with business before the administration. After the Trumps faced criticism that they were flouting government-ethics laws by profiting from the property, they put up for sale the long-term lease rights for the hotel in the former Old Post Office.

In 2022, the Trumps sold those rights to Miami-based investor CGI Merchant Group for $375 million—a price that was tens of millions of dollars more than the other offers, according to people familiar with the matter. CGI rebranded the hotel as a Waldorf Astoria.

This month, the new owner defaulted on a $285 million loan related to the property, according to people familiar with the matter. The missed payments on that loan reflect higher interest rates and the above-market price the firm paid the Trumps, industry executives say.

Non-paywall link

    • orclev@lemmy.world
      24·
      4 months ago

      Fred Trump made his money as a NY slum lord, which isn’t technically illegal even if it’s scummy as hell. What was illegal though was all the tax fraud and embezzlement he committed along the way. Dude practically wrote the book on tax fraud and exploiting tax loopholes. Taught every dirty trick he knew to his kids. His daughter was a crooked judge who stepped down rather than being disbarred for, wait for it, fraudulent tax and financial transactions. Donald on the other hand was the dumber of the two, he learned all the lessons on grifting and financial crime, but never really picked up his dads business savvy that let him actually make money. Donald has just been chewing through everything Fred left him on one failed business venture after another. If the Russian mafia hadn’t bailed him out in the 90s he would have been completely broke by this point.