Who’s Financing Trump Tower Tampa?
Trump Tower Tampa, luxury condos for sale in Tampa, ground breaking happened three months ago on Ashley Drive in Tampa, Florida. And as the foundation nears completion and developers look to go vertical, two crucial questions remain: Who is going to build the 52-story Trump Tower Tampa condos structure and where is the money coming from?
Those questions have been asked in abundance by observers, even fueling speculation once again that the $225 million Trump International project is in jeopardy. Ask anyone at SimDag LLC, the company partnering with The Trump Organization on the tower, however they’ll say there’s nothing to worry about.
“You’ve got to remember that the sales response for this luxury condominium project, even after (a unit price) increase, has been phenomenal,” said David Hooks, spokesman for the Trump Tower project. “The foundation work is continuing, and because of that, there’s an opportunity to improve the terms of the financing being negotiated. The developers are taking that opportunity to finalize the best terms possible.”
When the ceremonial groundbreaking took place March 2, SimDag CEO Frank Dagostino admitted higher costs for real estate construction material pushed the overall price tag of the tower by $75 million. While SimDag was able to eat some of those increases, more than $40 million had to be passed on to condominium buyers looking to buy units for between $700,000 and $6 million.
At the same time, however, Dagostino said two different financing companies were being approached to foot $200 million, with SimDag investing the other $20 million. He declined to reveal the names of those companies but said they would be named before the month ended.
Even with a price increase at Trump Tower Tampa Condominiums, nearly all the buyers were retained, Hooks said. Knowing foundation work won’t be completed until August, SimDag officials decided there was time to try and work the best deal while continuing presales of a select number of the 192 units.
The same has been said for finding a contractor, which SimDag has been looking for since ending Turner Construction’s involvement in April.
SimDag officials, however, shouldn’t be too surprised that these issues are fueling speculation of an early demise to the project, said Byron Moger, senior director of the Capital Markets Group of Cushman & Wakefield.
“There’s definitely enough turmoil in the retail luxury condominium real estate market that it’s not surprising that people are questioning transactions,” Moger said. “But if they continue to have the presales that have been announced, then there shouldn’t be any problem in getting financing.”
Trump Tower Tampa is one of a half dozen Trump-themed projects under construction or recently completed in Florida. They include the Trump Grande Ocean Resort & Residences in the Miami area; two projects in Fort Lauderdale: Trump International Hotel & Tower and Trump Las Olas Ocean Resort & Residences; Trump Hollywood in South Florida; and a trio of 45-story towers in Sunny Isles Beach.
More than a dozen other Trump Towers real estate, including the currently in construction phase Las Vegas Trump Towers, are being built or already finished in various cities across the country and overseas. The largest one by far is Trump Tower Chicago, which will be the second largest tower in the city at 92 stories when it’s finished, around the same time as Tampa’s, at an estimated cost of $750 million. That’s 20 stories larger than Trump World Tower in New York City, which had its 72 stories completed in 2001 for $300 million.
Other projects are under way in Philadelphia, Las Vegas Trump Condos, New Orleans, Toronto and even Panama City, Panama. Probably one of the most unique-looking designs is coming out of the Middle East where a 48-story tower that looks like it just stepped out of a science-fiction film is expected to be completed in Dubai for $600 million by the end of 2009. That design recently replaced the original plans drawn up in 2004 that would have constructed a Trump Tower that resembled a blooming tulip.
Source: Tampa Bay Business Journal
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Trump Tower Tampa luxury condominiums are looking for $200 million in financing for increased construction costs.