Investors Lose $32M in Trump's Mexico Condo-Hotel Project

(BAJA, MEXICO)—There is no joy in Trumpville today. The mighty Donald has struck out – again.

New York entrepreneur Donald J. Trump’s planned 526-suit Trump Ocean Resort Baja – 30 minutes south of Downtown San Diego --- is nothing but a deep hole in the ground today.

The condo-hotel project (top right rendering)in North Baja, Mexico, could not obtain financing from a German bank to start construction.

Investors who had rushed to plunk down 30 percent deposits on suites priced from $300,000 to $3 million, are out their money.

Trump Entertainment Resorts Inc., through a Mexican entity, PB Impulsores, informed investors there were no funds to refund deposits totaling $32.2 million.

Trump Entertainment Resorts maintains a clause in the buyers’ contracts gave the developer a right to spend their deposits.

Several lawsuits have already been filed in Los Angeles Superior Court.

Trump Baja condos went on sale in October 2006. S&P Destination Properties sold 188 units for a total $122 million on the first day of the sale.

Trump and his partner in the project, Los Angeles-based Irongate Capital Partners LLC, had retained S&P Destination to handle sales and marketing.

Trump claims his only relationship to the project was licensing his name for a fee. He will argue in court that he was not a direct investor in the project, according to sources in a position to know.

Trump, through his Trump Organization, now says Irongate violated a contract to license the Trump name and also missed deadlines to find construction financing. Irongate officials declined to comment.

At the gala San Diego sales reception in October 2006, Trump told buyers Trump Baja “will redefine the standard of premier property ownership and service excellence for all of Northern Mexico.”

He added, “I’ve always said, ‘location is everything,’ and being just 30 minutes from Downtown San Diego makes this an ideal locale for a premier resort property.”

The planned studio, one-bedroom, two-bedroom and three-bedroom residences were designed for 532 square feet to 2,200 square feet of living area.

As Real Estate Channel previously reported, Trump Entertainment Resorts Inc., a nine-company related leisure-vacation group, filed for Chapter 11 bankruptcy protection in February.

The holding company listed assets of $2.96 billion and debts of $1.74 billion. The bankruptcy filing was the third in 20 years for Trump-directed companies.

Holliday Fenoglio Fowler's Big Deals in Last 45 Days

Marcus & Millichap Names Top Producers

Mark Myers in Chicago has closed more than $1.6B in career transactions

CHICAGO, IL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named its top investment specialists for 2008.

One agent in Marcus & Millichap’s Chicago office ranked in the Top 30 out of more than 1,300 investment specialists nationwide. The agent is Mark Myers (25). (top right photo)

“We are proud to recognize Mark as one of the firm’s top agents,” says Harvey E. Green, (top left photo) president and chief executive officer of Marcus & Millichap. “His accomplishments and track record reflect his superior transaction expertise and commitment to client service.”

Myers, a senior vice president investments and senior director of the firm’s National Seniors Housing Group in Chicago, facilitated transactions valued at more than $97.05 million last year. Myers joined Marcus & Millichap in November 1993 and was promoted to senior vice president investments in January 2008.

His notable transactions last year included the sale of a $23 million assisted living care facility in Corona, Calif., a $15.3 million skilled nursing facility portfolio in various locations in Indiana, and a $ 7.1 million assisted living and specialty care facility in Meredith, N.H. Myers has closed more than 250 transactions in his career, valued at greater than $1.6 billion.

MATTHEW KESTERSON NAMED ONE OF FIRM’S TOP INVESTMENT SPECIALISTS
VERO BEACH, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named its top investment specialists for 2008.

One agent in Marcus & Millichap’s Vero Beach office ranked in the Top 30 out of more than 1,300 investment specialists nationwide. The agent is Matthew Kesterson (20).(middle left photo)

“We are proud to recognize Matthew as one of the firm’s top agents,” says Harvey E. Green, president and chief executive officer of Marcus & Millichap. “His accomplishments and track record reflect his superior transaction expertise and commitment to client service.”

Kesterson, a vice president investments and a director of the firm’s National Multi Housing Group in Vero Beach, facilitated transactions valued at more than $88.59 million last year.

Kesterson joined Marcus & Millichap in 2002 and was promoted to vice president investments in July 2008. His notable transactions last year included the sale of $10.15 and $9.24 million multi-family communities in Montgomery, Ala., and a $9.95 million apartment community in Daytona Beach, Fla.

STEPHEN STEIN RETURNS AS REGIONAL MANAGER OF LOS ANGELES OFFICE

LOS ANGELES, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Stephen Stein (bottom right photo) regional manager of the firm’s Los Angeles office, according to Harvey E. Green, president and chief executive officer.

“With great pleasure, we welcome Steve back to the position of regional manager of the Los Angeles,” comments Green. “This is a position in which he has previously served with great distinction.

"Steve’s hands-on management skills, combined with his extensive transaction experience as a commercial real estate investment specialist, make him an invaluable resource to our agents and clients throughout Southern California.”

Stein joined Marcus & Millichap’s Phoenix office in 1990 as an investment specialist. He ranked among the firm’s Top 10 agents in 1991 and in 1994, and became a senior associate in 1993. He received the senior investment associate distinction in 1996 and was promoted to regional manager in the firm’s Long Beach office in August of that year.

In April 1999, Stein became the regional manager of the Los Angeles office, and in April 2000, was elected a first vice president of the firm. In June 2003, Stein rejoined the sales force in Los Angeles. He earned two National Achievement Awards and was promoted to vice president investments in January 2008.

Throughout his sales career, Stein has received 10 internal sales recognition awards. Stein graduated from Arizona State University in 1979 with a degree in marketing.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716.