Washington, D.C
Former Trump International Hotel in DC Headed to Foreclosure Auction
CGI Merchant Group’s Waldorf Astoria hotel in Washington, D.C. is headed to a foreclosure auction in June after months of financial difficulties.
Chicago-based BDT & MSD Partners, the main lender of $285 million in financing backed by the hotel, filed an affidavit of nonresidential mortgage foreclosure on Friday, according to the Business Journals, which cited records filed with the D.C. Recorder of Deeds. The auction is scheduled for June 20 at the District office of Alex Cooper Auctioneers.
Miami-based CGI defaulted on $252.7 million in outstanding debt on the property earlier this year. CGI, in partnership with Hilton, purchased a leasehold on the 269-room hotel, at 1100 Pennsylvania Avenue NW, in 2022 for $375 million from former President Donald Trump. Within a month of acquiring the hotel, CGI rebranded it from the Trump International Hotel to the Waldorf Astoria.
“CGI is engaged in productive discussions with the property’s manager, Hilton, and several other parties who want to reach a consensual financing solution that reflects the realities of today’s challenging, rising rate environment,” a CGI spokesperson told Commercial Observer in a statement. “MSD’s unilateral decision to file a foreclosure notice is inconsistent with the discussions and possibly invalid. Although our goal is to continue advancing constructive negotiations with all parties, including MSD, we’re prepared to take all necessary steps to protect the rights of CGI and its partners.”
Representatives for BDT & MSD did not immediately respond to a request for comment.
The hotel is located within D.C.’s historic Old Post Office, which remains one of the tallest buildings in the District. The federal government in 2012 leased the property on a 60-year term to the Trump Organization, which then spent some $200 million renovating it into a luxury hotel.
The Trump International Hotel opened in 2016 just a few months before Trump was elected president. It was a source of controversy while Trump was in office because his family profited from the hotel, which was often visited by foreign dignitaries and their entourages.
Trump is currently facing a $355 million penalty for real estate fraud, with the hotel being one of the assets implicated in the case. The New York judge in that case ruled that he won the contract from the General Services Administration due to false information, rendering Trump and his children liable for the profit he received from the property.
Just because the foreclosure auction is set for the Waldorf Astoria, however, does not mean that its sale is a foregone conclusion. Before the auction was announced, CGI was in the midst of negotiating a $75 million capital infusion into the property from Mavik Capital Management — and it’s possible that CGI and MSD Partners could reach a new deal before the June 20 deadline.
“Mavik has not reached a definitive agreement to provide rescue capital to restructure the property’s balance sheet,” a Mavik spokesperson told Commercial Observer. “If the parties decide they want a consensual resolution, we will reengage and anchor a constructive outcome.”
Nick Trombola can be reached at ntrombola@commercialobserver.com.
Washington, D.C
Person hospitalized with serious injuries after crash in DC
Washington, D.C
Local Washington officials brace for four years of playing defense against Trump
WASHINGTON (AP) — Donald Trump’s first stint in the White House proved to be a chaotic ride for the District of Columbia.
Now with Trump set to return to power — backed by a Republican-controlled Congress and the momentum of a sweeping electoral win — local officials in the nation’s capital are trying to sound conciliatory while preparing for the worst.
“We have been discussing and planning for many months in the case that the District has to defend itself and its values,” said Mayor Muriel Bowser. Her office had “communicated with (Trump’s) team and indicated we would like to speak,” she said on Nov. 12, but hadn’t heard back.
Bowser downplayed the myriad differences between the two sides and emphasized a search for common ground. But those commonalities may be hard to come by, given open mutual animosity that has defined Trump’s relationship with the district.
During Trump’s turbulent first four years in office, he and the local government publicly sparred multiple times — in tones ranging from playful to deeply personal. When Trump floated the idea of a massive July 4 military parade complete with tanks rolling through the streets, the D.C. Council publicly mocked him.
When mass protests broke out in the summer of 2020 over the death of George Floyd and wider police brutality and racial issues, Trump accused Bowser of losing control of her city. he eventually declared his own multi-agency lockdown that included low-flying helicopters buzzing protesters. Bowser responded by having “Black Lives Matter” painted on the street in giant letters one block from the White House.
What to know about Trump’s second term:
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During the last four years, with Trump as an aggrieved private citizen, his feelings toward Washington have remained intense. On the campaign trail, he repeatedly vowed to “take over” the city and usurp the authority of the local government. In August 2023, when he briefly came to town to plead not guilty on charges of trying to overturn his 2020 electoral loss to President Joe Biden, Trump blasted the capital city on social media, calling it a “filthy and crime ridden embarrassment to our nation.”
Now Bowser and the D.C. Council are bracing for what could be several years of playing defense against opponents who wield significant power over Washington’s affairs.
“We just have to do our best and hold on for another few years. We have to figure out how to make it work,” said Councilmember Christina Henderson. “Unlike millions of voters around the country, I actually believe the man when he speaks. He said what he’s going to do.”
Henderson, a former staffer for Senate Majority Leader Chuck Schumer, D-N.Y., points out that Trump has already experienced what she called “the trifecta” — Republican control of the White House and both houses of Congress — during his first two years in office and the district managed to get through it. She also notes that Republican control of the House of Representatives will be up for grabs again in just two more years.
“I can’t predict what they’re going to try to do to us,” she said. “I can just prepare to respond.”
But responding to the intentions of an antagonistic White House and Congress is difficult, given the nature of the District’s limited autonomy. Under terms of the city’s Home Rule authority, Congress essentially vets all D.C. laws and can outright overturn them.
Even when Trump was out of the White House, activist Republicans on the House Oversight Committee repeatedly summoned Bowser and members of the D.C. Council — often to publicly grill them about local crime rates.
And by far the most extensive modern congressional encroachment on the District’s authority came with Democrats controlling both the Senate and the White House. In 2023, a sweeping rewrite of the D.C. criminal code was branded as soft on crime by House Republicans; in a major setback for the council, both Senate Democrats and President Biden agreed and the law was effectively canceled.
“We know that the district can always be a convenient foil to some of these folks,” said Councilmember Charles Allen. “Without statehood, without autonomy, our laws are always more at risk than any other Americans.”
Both councilmembers predict a wave of budget riders on the annual appropriations bill — designed to alter district laws in ways big and small. These riders have been a longtime source of resentment for local lawmakers, who charge Congress members with tinkering with the district in a manner they could never get away with at home.
“They want to do something to the district because they feel they can. They would never do that to their own state,” Allen said.
He highlights the infamous “Harris rider” named for Maryland Rep. Andy Harris. A staunch opponent of legalized marijuana, Harris has for years used a budget rider to prevent the local government from creating any sort of regulatory framework for taxing or controlling sales. Meanwhile, Maryland has since legalized recreational marijuana use.
“He can’t implement it in his home state, but he can do it to us,” Allen said.
Last year’s appropriations bill initially included riders that would have banned all traffic speed cameras in the nation’s capital and prevented the district government from banning right turns on red lights. Those proposals eventually faded during the negotiation process, but Allen feels that the coming Congress “won’t have Democrats in the same position to help negotiate away many of the most objectionable budget riders.”
Other congressional Republicans have sought to make more fundamental changes to the way Washington operates. Rep. Andrew Clyde of Georgia has proposed completely repealing the Home Rule Act, while Rep. Andy Ogles of Tennessee has talked publicly of abolishing the office of D.C. mayor. Neither Ogles’ nor Clyde’s office responded to Associated Press requests for comment on their future intentions.
Despite the looming battles, Bowser’s search for common ground with Trump and congressional Republicans may not be completely hopeless. Bowser actually vetoed the criminal code rewrite but was overridden by the D.C. Council; her opposition was frequently cited by congressional Republicans as proof of how far the council had strayed from mainstream Democratic policy.
And Bowser, Trump and Republicans in Congress have all agreed for years on one particular issue: the need to end post-pandemic teleworking and bring all federal employees back to their offices five days a week. She said she looked forward to discussing that with Trump.
Washington, D.C
DC woman relieved of thousands in speed camera tickets after DMV mix-up
WASHINGTON – Good news — a woman who had been hit with thousands of dollars in speed camera tickets from the D.C. DMV won’t have to pay a dime.
FOX 5 initially reported on Nov. 1, after Angela DeVore reached out and said she was frustrated with the lack of help she was receiving from District officials.
Following that initial story, Fox 5’s Homa Bash checked in with the DMV constantly, and on Monday – nearly three weeks later – DeVore received an email that all of those traffic tickets have been dismissed, and her case has been closed.
She said it’s a huge relief, and she’s grateful she reached out to FOX 5 when she did.
“I want to thank God that it’s done, it’s over with, I don’t have to deal with it anymore. I want to thank you and the FOX 5 family for being there and getting my story out there, and I also want to thank the DMV,” DeVore said.
DeVore’s predicament began back in June, when she started receiving automatic speed camera tickets nearly every week – more than two dozen from D.C., Maryland and Virginia – totaling thousands of dollars.
Here’s the problem: the photos captured by the speed enforcement cameras show a two-door BMW convertible – but DeVore owns a four-door Volkswagen Jetta.
The license plates are almost the same – except the one getting tickets has a dash in zero, which is why it seems the system was glitching and sending citations to DeVore instead.
When she told DMVs in Maryland and Virginia about the mixup, they dismissed the tickets immediately.
The D.C. DMV, however, said she had to keep continually contesting them, and for months, told her they were still investigating.
“It was frustrating, it was draining. I felt like I was being targeted,” DeVore said.
“I want to jump for joy but I don’t want to hurt myself,” she added, laughing with relief.
The DMV did not clarify to DeVore exactly why the case was closed – for example, if the other plates were fake or cloned, or who will be responsible for payment now.
But she wants to encourage people facing the same issue to speak up, and stay persistent.
Below is the statement sent to Fox 5 from a DMV spokesperson:
“A Hearing Examiner has dismissed the tickets in question. A hearing record will be mailed to Ms. DeVore’s address on file. DC DMV encourages residents with questions or concerns about tickets to reach out for assistance.”
“For customers who may encounter this rare circumstance, we recommend the following:
Immediately file a Police Report with MPD: https://mpdc.dc.gov/service/file-police-report
Contest the ticket(s) to be dismissed: Contest Parking and Photo Enforcement Tickets | dmv
Prior to contesting the ticket, customers are welcome to reach out to our DMV Ticket Adjudication Ombudsman for advisement: Ticket Adjudication Ombudsman | dmv
For all customer matters the DMV can be reached online: Contact Us | dmv
Please consider registering for DMV’s Ticket Alert Service (Registration for Ticket Alert Service (TAS) | dmv) to ensure that you have an extra layer of notification for tickets issued to your vehicle.”
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