Lender Takes Control of Trump’s Former D.C. Hotel for $100M in Foreclosure Auction

The rights to the luxury Washington, D.C. hotel once owned by Donald Trump’s family firm — which is now a Waldorf Astoria property — have been sold to its lender in a foreclosure auction for $100 million.

CGI Merchant Group, the Miami-based investment firm that bought the leasehold interest for $375 million just two years ago from the former president, has lost the property after defaulting on its $285 million loan.

According to BDT & MSD Partners, the commercial bank that provided the loan, CGI first defaulted in 2023. Despite extending the foreclosure deadline by 45 days, CGI failed to settle the debt, leading to the bank taking over the property on Monday, it reported Bisnow.

“We have actively engaged with CGI in a constructive manner, giving them sufficient time to explore alternative funding and options,” a BDT & MSD spokeswoman told The Post in a statement.

“We have now taken control of the Waldorf Astoria Washington DC through foreclosure.”

CGI, which partnered with former baseball star Alex Rodriguez for the investment, remains hopeful. “We’re not done fighting for the Waldorf Astoria,” a CGI spokeswoman said.

“Although the auction has taken place, we remain in intensive discussions with BDT & MSD Partners and still have a finalized capital solution on the table to cure the loan default and recapitalize the asset.â€

BDT & MSD will retain ownership rights over the hotel. Hilton, which manages the Waldorf brand, confirmed it will continue to operate the property.

“Hilton has a long-term agreement to manage the hotel and that agreement will continue. It remains business as usual at the Waldorf Astoria Washington DC,” a Hilton spokesperson said.

The property, located in the historic Old Post Office building just steps from the White House, has been a focal point in real estate and political circles.

Although the Trumps never owned it outright, they held a nearly 100-year lease, which they took in 2012 after outbidding major hotel chains like Marriott and Hilton.

The Trump Organization turned the hotel into a GOP hotspot during the former president’s time in office, attracting politicians and lobbyists.

In 2022, the leasehold rights were sold to CGI for a premium, but higher interest rates since then have presented investment challenges.

The hotel features The Bazaar, a 150-seat restaurant located on the ground floor that opened in 2023. Additionally, the property is home to Sushi Nakazawa, a Michelin-starred omakase restaurant that has been operating since 2018.