A company formed by Donald Trump with intentions of building a luxury hotel and condo project on the Delaware River waterfront filed for Chapter 11 bankruptcy yesterday as part of a legal strategy aimed at preventing foreclosure. The company, VTE Philadelphia LP, filed for Chapter 11 after a Pennsylvania court granted US Bank, owed $17 million, permission to foreclose on the currently vacant waterfront lot. A sheriff’s sale of the property was scheduled for this morning but the bankruptcy filing prevented the sheriff’s sale. VTE is looking for investors to resuscitate the project. A similar strategy was recently used by the mezzanine lender at 10 Rittenhouse during legal wrangling between the mezzanine lender and Istar Bank.
Trump Tower Philadelphia was designed to be a 45-story skyscraper located at 709-717 North Penn Street in the Northern Liberties neighborhood of Center City Philadelphia on an existing peninsula extending 700 feet (210 m) into the Delaware River. The developers, a partnership between Donald J. Trump and Multi Capital Group, planned on completing the project, designed by William Alesker (Alesker & Dundon), in 2009 but were unable to proceed when the real estate market collapsed in Philadelphia and nationally. (Wikipedia)
Click here for more information on the Trump Tower Philadelphia project.
Blog post compliments of the CenterCityTeam Philadelphia Real Estate Blog
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Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106