One of Washington D.C.’s most iconic buildings, located just blocks from the White House, is set to be sold at a foreclosure auction next month. The Waldorf Astoria, formerly the Trump International Hotel at the Old Post Office, is at the center of financial turmoil with its new owners struggling to turn a profit like Trump did.
The owner, Miami-based CGI Merchant Group, has defaulted on the mortgage tied to the leasehold of the property, according to an affidavit filed with the D.C. Recorder of Deeds.
The Trump Organization originally leased the historic building from the federal government in 2012, spending $200 million to convert it into a luxury hotel. The Trump International Hotel opened in September 2016, months before Donald Trump took office. In 2022, CGI Merchant Group acquired the lease from The Trump Organization for $375 million, significantly more than the next highest bid, allowing Trump to profit substantially from the sale.
To finance the acquisition, CGI took on a $285 million loan from Michael Dell’s MSD Partners, but defaulted on this loan in February, with $252.7 million still outstanding. MSD Partners, now part of BDT & MSD Partners following a merger, is moving to foreclose on the loan. The foreclosure auction is scheduled for June 20 at Alex Cooper Auctioneers, as reported by the Washington Business Journal.
The potential foreclosure sale could allow MSD Partners to take control of the property, wiping clean any financial issues. The auction could be canceled or postponed if an agreement is reached. Notified parties include CGI, the General Services Administration, Mayor Muriel Bowser’s office, and Hilton Worldwide Holdings.