Article content continued

“As a result, the Receiver has determined that the Stalking Horse Bidder is the Successful Bidder,” the letter said.

With no rival bidders emerging, the hotel’s ownership will likely fall to JCF Capital ULC, which on Sept. 29 bought the $301 million owed on the tower’s construction loan, before quickly moving to initiate the sale process.

A hearing to approve the sale is expected on March 30, a lawyer for JCF said.

JCF is represented by Jay Wolf, founder of Juniper Capital Partners LLC, an investment firm that says it targets distressed or out-of-favour assets with attractive valuations.

While the building in Toronto’s financial district has been beset by problems since it opened its doors in 2012, the broader Toronto hotel market has boomed.

The property offers a buyer “substantial unrealized potential,” CBRE, a commercial real estate company retained by FTI Consulting, said when it kicked off marketing in January, citing the recent sale of the 259-room Four Seasons Toronto for $225 million, or $869,000 per room.

The Trump tower sale includes 211 hotel rooms and 74 residential units as well as most of the commercial, retail and amenity space in the property, which includes some parking spots, a spa, and the ground-floor Calvin Bar.

Since its opening, less than half of its residential condos have been sold by Talon and the hotel’s occupancy rates have been lower than some investors in the rooms had hoped.

Some hotel unit buyers have said they were misled into investing and have filed lawsuits against Talon, which Talon has said are without merit.

©Thomson Reuters