Trump Tower reborn as a St. Regis
With rebranding and financial re-engineering, skyscraper ready to move past its former troubles
Altering the reputation of the luxury hotel-condominium once known as Trump Tower isn’t as simple as hanging a new sign.
But a rebranded and financially re-engineered foundation for the glass and granite skyscraper at Bay and Adelaide Sts. means the property is finally poised to move past its previous legal and financial troubles, says Jay Wolf, the Los Angeles-based president of JCF Capital.
The Toronto native was in town on Thursday for the official launch of the St. Regis Residences, 74 luxury condos that were part of JCF’s $298 million courtapproved purchase this summer of the assets of the former developer/owner Talon International.
JCF, a joint venture of Juniper Capital Partners and Cowie Capital Partners, has already sold the hotel and other facilities to Canadian company InnVest Hotels for an undisclosed amount.
(Another 50 condos on the site are individually owned.)
The St. Regis Residences were never sold in the building’s previous iteration. They were caught up in the default of the Talon construction business, said Kate Hay, chief operating officer for JCF.
There are now reservations on a third of the apartments, according to the company.
Priced between $1.6 million and $23 million and ranging from 1,310 sq. ft. to 12,000 sq. ft., they already bear the hotel name that will go outside the building in 18 to 20 months. That’s when a $20-million remodel should be complete. In the meantime, the property is operating as the Adelaide Hotel.
Toronto’s reputation as a stable, hospitable market has brands competing to make their mark on the city. But the St. Regis brand offers an unparalleled experience, Hay said.
Condo owners will have their own 32nd-floor lobby and secure elevators, as well as access to the same bespoke amenities and services offered to hotel guests.
The apartments on the 34th to 48th floors come with sweeping views of the city and lake, 10-foot-5 coffered ceilings, fireplaces, gourmet kitchens, premium sound insulation between suites, heated floors and other marble, stone and porcelain finishes.
“Suffice it to say, already operationally it is very, very different. That has to do with the routine, new management, new owners,” Wolf said.
“It’s always been a fantastic asset,” he said. But it would be a difficult property to develop from scratch, given the 65-storey height and its downtown financial district location.
Some of its early troubles stemmed from overbuilding with luxurious flourishes such as high ceilings and custom crown mouldings — “things that cost a lot of money but can sometimes be difficult to get your money out of it,” he said.
“In any project, it’s so much easier to come in with an asset that is already built and complete,” Wolf said.
Removing what he calls the legal and reputational “overhang” means the St. Regis “is now really poised to succeed — and succeed on prevailing valuations in the marketplace.”
JCF has also streamlined the operation of the various parties using the building. Because the property has already been constructed, “we know how it works,” Hay said.
The previous owners didn’t have that advantage. Because the documents guiding the coexistence of two condo corporations within the same building were drawn up before the tower was constructed, some of the interests of the two parties were misaligned, she said.
“When you look at condo corporations that are sharing common areas and expenses related to common areas, if you don’t align interests around what does this area mean to me and what does it mean to you, there are some people who feel like they’re paying more than they should be,” Hay said. “So we went in and looked at that and made sure that all lined up with the way the property’s actually operating.”
“In any project, it’s so much easier to come in with an asset that is already built and complete.” JAY WOLF PRESIDENT, JCF CAPITAL
The St. Regis brand, a division of Marriott, has a tradition of anticipating guests’ desires that dates back to its millionaire American founder John Jacob Astor IV.
“He envisioned it as an expression of the finest art and architecture in the world,” said Lauren Esrock, senior director of global brand management for St. Regis.
Canada’s only St. Regis property — there are 44 worldwide and 17 in development — will have concierge and car services, and the availability of a butler to perform more personalized duties.
Residential areas will be enhanced, he said. But the unique architectural and design features will remain, including carved marble arches and “bookmarked” stone walls where the veining is made to run in a single direction or used to create a symmetrical pattern. The hotel-condominium broke ground in 2007. But after a series of struggles that ranged from a malfunctioning art piece lighting strip running the length of the tower, to the difficulty of selling residential units, the enterprise went into receivership early this year.
The Trump family never ran or owned the hotel but licensed its name to the property after an original attempt to brand it as a RitzCarlton failed.
The pre-presidential star of TV’s Apprentice made an appearance at the 2012 opening, which also scored a visit from late Toronto Mayor Rob Ford.