Lender takes control of Trump’s former DC hotel for $100M at a foreclosure auction

The rights for the luxury Washington, DC hotel formerly owned by Donald Trump’s family firm — which is now a Waldorf Astoria property — has been sold to its lender at a foreclosure auction for $100 million.

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

According to BDT & MSD Partners, the merchant bank that issued the loan, CGI first defaulted in 2023. Despite extending the foreclosure deadline by 45 days, CGI failed to resolve the debt, leading to the bank’s takeover of the property on Monday, Bisnow reported.

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

“We have now taken control of the Waldorf Astoria Washington D.C. via foreclosure.”

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

“Even though the auction has occurred, we remain in intense discussions with BDT & MSD Partners and still have a finalized capital solution on the table to cure the loan default and recapitalize the asset.”

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

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“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 D.C.,” said a Hilton spokesman.

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 acquired in 2012 after outbidding major hotel chains like Marriott and Hilton.

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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 lease rights were sold to CGI for a premium price, but higher interest rates have since posed challenges for the investment.

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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.