Receiver Sets Price for Trump Tower in Toronto

Toronto's Trump Tower, another mega property Trump sold his name to and managed ended up in the hands of a receiver in November. The receiver has just offered it for sale and bids start at $298 million.

A group of owners in the property, who claim to be the victims of misleading marketing, are suing the property’s developer, Talon International and the business organization owned by U.S. President-elect Donald Trump, which manages it and licensed the use of its name on the property.

There have been three court actions on the property -- including one trying to remove Trump's name and cancel his management contract.

On Tuesday, an Ontario court placed the Trump International Hotel and Tower into receivership after the owners failed to make debt payments for more than a year. That came after a three-judge panel on the Court of Appeal for Ontario found last month that the project’s investors had been deceived. And in a third legal action, the hotel’s owners tried to remove the Trump name from the building and cancel his company’s contract to manage the hotel.

Shortly after it opened in 2012, the building began "shedding glass."

For the first of many times, the police had to close the surrounding streets because of falling debris.


Toronto is a strong real estate market, this is considered a "blow" of the Trump brand in Canada.

The failure of the Trump Tower in Toronto, a city that has been one of North America’s most buoyant real estate markets, stands out as a blow to the brand in Canada.

So Trump didn't own or build the property but his name didn't cut it and investors feel misled(sounds similar to the property that failed in Tiujuna I wrote about in the last paragraph of this post.)

Who did own the property?

Talon International Development, a real estate company owned by Alex Shnaider....who came to Canada as a teenager from Russia by way of Israel, is a longtime investor whose holdings have at various times included control of a steel mill in Ukraine and, for one season, a Formula One racing team.

.....To run Talon, Mr. Shnaider picked Val Levitan, a fellow Russian who, the appeal judges wrote, “had no previous experience in construction, hotel management or operations.”

A Trump lawyer says he can't be liable for the failure since he wasn't a party to the buyers' contracts. Language in the court of appeals decision may not agree:

The appeals court also ruled that a trial court could hear claims by buyers “based on oppression, collusion or breach of fiduciary duties,” for which Mr. Trump, Mr. Shnaider and Mr. Levitan could be held personally liable.

In the laugh out loud funny department, Trump's Organization responded to this mess by sending out a statement:

“This has been a record year for the hotel, and we look forward to its continued success.”

Here's the UnFirst Family-Elect at the ribbon cutting ceremony:

Since Trump likes to say he'll run the country like he runs his businesses, this is just another one of a hundred ominous signs for the future.

From the Boston Globe: So much for the B.S. that Ivanka won't be involved in her father's administration.

An informal adviser to Ivanka Trump is expected to join the White House. Goldman Sachs partner Dina Powell will be leaving the bank to take a role in the Trump administration, said a source close to the decision who was not authorized to speak publicly and spoke on the condition of anonymity. The source said Powell is expected to focus economic issues and policies relating to women and will work with Ivanka Trump and Kushner.

The Globe also reports Trump Org. will pay Ivanka a flat amount rather than continue to give her a share of the profits. The (un)magical logic of Trump:

The Trump team has said Ivanka Trump will divest some assets and will receive fixed payments rather than a share of the profits from the Trump Organization. She will also not be involved in the company’s Washington hotel. No details have been released on her financial arrangement with the lifestyle brand.

Transition officials also said Kushner will recuse himself from any matters impacting the Trump Organization. Richard Painter, who served as chief White House ethics counselor for President George W. Bush, said separation will be key because ‘‘all of her assets and income are attributable to him.’’

Painter added that if Ivanka Trump continues to have a financial stake in her business, then Kushner must recuse himself from areas that impact it, like foreign trade.

Shower time.

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  • Display: Sort:
    Metaphor... (5.00 / 1) (#1)
    by desertswine on Thu Jan 12, 2017 at 10:38:23 AM EST
    For the first of many times, the police had to close the surrounding streets because of falling debris.

    This is like a prelude to the trump administration.

    And it's very cold up there... (none / 0) (#2)
    by fishcamp on Thu Jan 12, 2017 at 11:03:55 AM EST
    Utter lack of restraint and judgment (5.00 / 1) (#6)
    by Peter G on Sat Jan 14, 2017 at 12:24:37 PM EST
    Tr*mp just keeps topping himself. On Twitter early (of course) this morning, he attacked Congressman John Lewis as "all talk." (And more.) Could there be anything farther from the truth?

    Trump is beneath contempt. He's not... (5.00 / 1) (#7)
    by desertswine on Sat Jan 14, 2017 at 01:23:23 PM EST
    half the human being John Lewis is.

    Apparently quite a few others (5.00 / 1) (#8)
    by Peter G on Sun Jan 15, 2017 at 11:04:43 AM EST
    seem to agree with my assessment. At least those who read books. (One of my daughters gave me a copy of "March" for Christmas. I have had a personally inscribed copy of "Walking With the Wind" on my bookshelf since 2007.)

    Another old Trump property (none / 0) (#3)
    by TrevorBolder on Thu Jan 12, 2017 at 07:23:07 PM EST
    Talk about getting in when the market is hot.

    The childhood home of President-elect Donald Trump, a Jamaica Estates five-bedroom Tudor, is on the block in an online silent auction. Would-be buyers have until 4 p.m. Tuesday to bid -- just four days before he takes the oath of office.

    Real estate investor Michael Davis owns the house on Wareham Place, having bought it in December for $1,395,500.

    Paramount Realty USA, which is handling the auction, advertises the house online as a "magnificent property with unique prominence." Besides the five bedrooms, the house features 4.5 baths, a sunroom, study and eat-in kitchen. As is typical with even million-dollar Queens homes, it's on a small lot, just 40 feet by 120 feet. Annual taxes are relatively modest at $7,525.

    Trump lived there until he was 4 years old, according to published reports.
    And so, it's left to the bidders to decide: What's Trump's old home worth?

    How is an article ... (5.00 / 1) (#4)
    by Yman on Fri Jan 13, 2017 at 08:48:16 AM EST
    ... about the sale of Trump's childhood home relevant?

    If (none / 0) (#5)
    by FlJoe on Fri Jan 13, 2017 at 09:25:16 AM EST
    If I had a billion dollars I would buy it just so I could piss on the beds then bulldoze the thing to the ground.