Torontos Trump Tower up for bids starting at $298 million

Commercial real estate company CBRE has officially launched the sell-off of the majority of Toronto’s troubled Trump International Hotel Tower and the Trump Residences at Bay and Adelaide Sts.The sale being handled by receiver FTI Consulting Canada was approved by the courts on Jan. 4. It comprises 211 hotel and 74 residential units and the building’s retail space, including the spa, the Calvin bar and upscale America restaurant.The receiver has set a minimum price of $298 million for the 65-storey, luxury tower and the sale is already receiving global interest from groups in Europe, Asia, the U.S. and some larger Canadian groups, said CBRE executive vice-president Bill Stone.“We’re encouraged by the initial response. This is a rare commodity. There are not a lot of luxury hotels available in North America at this point,” he said.CBRE has handled the sale of other prestigious Toronto hotels, including the Royal York, the Intercontinental and the Four Seasons. Stone characterized the five-star Trump Tower as a premium opportunity.Article Continued Below“The Toronto hotel market is exceptionally strong. Last year, to the end of Oct., occupancy was up about 5 per cent to 78 per cent. It was one of the strongest years on record. Average rates were up 11 per cent up to $221. Downtown Toronto was the rate leader in the country,” he said.Although he would not provide the occupancy rate on the Trump hotel, Stone said, “It is holding its own.”The bid date of Feb. 15 means the sale is expected to close this year, he said.