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.
What are lease rights? They don’t own it but are entitled to collect rent for a certain amount of time?
Lease rights because the building is probably still federal, but the lessee is allowed to operate a hotel and generate revenue from the property.
Looks to be like that- Trump was awarded the lease in 2012 from the General Services Administration which manages federal land. He got the lease by agreeing to invest $200 million into the property, still seems weird someone is going to pay a lease and they’re going to separately pay the previous leasee (Trump) for the right to the lease.
deleted by creator