Call it Skybnb. The Trump SoHo is a glimmering high-rise located at 246 Spring Street in NYC's famous SoHo neighborhood. It opened in 2010 with an interesting idea: the developers set aside 390 "condo-hotel" apartments for people to buy, with the idea that when the jet-setting buyers weren't using their apartments, the Trump SoHo could rent them out as hotel rooms--and share the profit with the owners. Like a super high-end Airbnb.
Besides having some tax incentives structured in, the plan was irresistible to developers: why sell something once, when you can sell the same thing over and over? In the end it wasn't a very appealing deal, reports Jessica Dailey at Curbed. The development's lender, CIM Group, "is taking control of the building through a foreclosure and will auction off the property." Fewer than a third of the available condo/hotel apartments sold. Trump's company is merely the building's manager, not an investor--Trump continues to make money licensing his name and running the hotel. But the Skybnb model, where you rent out your glamorous room with a view to weary travelers just didn't work at this level.
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