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Buyers Lose $32 Million as Trump's Baja Bet Folds

Donald's name drew deposits which couldn't be refunded

By Matt Cantor,  Newser Staff

Posted Mar 7, 2009 8:29 AM CST
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(Newser) – Donald Trump lost some very big fans when his  luxury hotel-condo plan in Mexico collapsed, leaving little more than a hole in the ground and investors out of $32.2 million in deposits, the AP reports. Trump and his children heavily promoted the resort on the northern tip of Mexico's Baja California coast. He sold 188 units for $122 million the first day they went on a sale at a lavish event in a downtown San Diego hotel in December 2006.




One buyer has sued Trump, and more lawsuits are likely. Buyers were told Trump wasn’t an investor in a letter saying a construction loan had fallen through, but Ivanka Trump had told the AP her dad was “boss” of the project. The letter cited a clause allowing deposits to be spent. “If Donald Trump was behind it, it was going to work,” said a woman who put down $250,000 for a place.

In this Dec. 8, 2006 file photo, prospective buyers look over a model of the Trump Ocean Resort Baja Mexico during a sale at Manchester Grand Hyatt in San Diego.
In this Dec. 8, 2006 file photo, prospective buyers look over a model of the Trump Ocean Resort Baja Mexico during a sale at Manchester Grand Hyatt in San Diego.   (AP Photo/Denis Poroy)
A Trump Ocean Resort Baja highway billboard with a large photo of Donald Trump that advertises condos for sale remains on the project lot on the outskirts of Tijuana, Mexico, Friday, Feb. 27, 2009.
A Trump Ocean Resort Baja highway billboard with a large photo of Donald Trump that advertises condos for sale remains on the project lot on the outskirts of Tijuana, Mexico, Friday, Feb. 27, 2009.   (AP Photo/Guillermo Arias)
Guadalupe Mendoza, 47, of Downey, Calif., lost her $200,000 deposit on a $667,000 two-bedroom condo in Trump Baja.
Guadalupe Mendoza, 47, of Downey, Calif., lost her $200,000 deposit on a $667,000 two-bedroom condo in Trump Baja.   (AP Photo/Damian Dovarganes)
In this Saturday, Aug. 23, 2008 file photograph, Donald Trump poses with his daughter Ivanka Trump at a party in Los Angeles.
In this Saturday, Aug. 23, 2008 file photograph, Donald Trump poses with his daughter Ivanka Trump at a party in Los Angeles.   (AP Photo/Chris Pizzello)
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COMMENTS
Showing 3 of 6 comments
Guest
Mar 10, 2009 2:50 AM CDT
That is his business plan -- he always leverages as much as possible. I'm guessing he's made lots of people a lot of money while there's some risk of a bankruptcy. He always seems to be able to pull off another multi-million dollar deal.
riffran
Mar 8, 2009 5:33 AM CDT
I enjoyed watching him and that fat hag rosie squabble....THAT was entertainment....rofl
riffran
Mar 8, 2009 5:32 AM CDT
"sheepshead"??? whats that..."down" here it's a coastal bay fish that feeds off of barnacles and crustations, silver with black stripes...and tasty

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Mexico • Donald Trump • housing • Ivanka Trump • condominium • resorts • condo hotel

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