Now, after being turned down by numerous traditional lenders and 10 hedge funds, they're poised to walk away and sell the waterfront site along Ashley Drive in downtown Tampa, the project's developer says.

"We're either going forward or coming to an end," said Frank Dagostino, CEO of the company developing the project.

The tower's only hope: one last New York hedge fund must agree to finance the project before March 31, Dagostino said. The developers set the self-imposed deadline in new contracts they persuaded buyers to sign. The contracts gave the developers more time to secure financing before giving buyers back some of their money.

"We have a lender," Dagostino said. "But it's not a done deal. It doesn't mean we're going to pull this off."

The 52-story Trump Tower Tampa was announced in early 2005, but the developers, SimDag/Robel LLC, struggled to move forward. The project is mired in liens and lawsuits, including one from Donald Trump, who sold rights to his name for the tower.

When the real estate market tanked, traditional lenders steered clear of Trump Tower. Developers looked for financing from hedge funds, a risky, expensive method to fund projects. It seemed a viable option for the tower, but Dagostino said all the hedge funds also turned him down.

"No one wants to lend money in Florida right now," he said. "Every developer is desperate right now."

Dagostino said the company has $85 million in contracts. It originally had $137 million in signed purchase contracts, he has said. If the company does call it quits next month, Dagostino said the company will try to liquidate the property and "pay everyone we can."

Selling the property would be tough, says Patrick Berman, senior director for Cushman & Wakefield in Tampa.

SimDag paid $16 million for the property in 2004. They would likely get only about $10 million to $12 million for it in today's market, even though developers may have invested as much as $25 million in infrastructure on the site, Berman said.

"The land is worth what it will yield," Berman said. "The market for 50-story condos is no longer viable."

So, what could be built on the waterfront site?

Some possibilities, Berman said, are office space, apartments or a hotel. All aren't great options, given the current economic and real estate climate.

"It's a tough spot to be in," Berman said. "It's a great location; it's just a tough market."

Meanwhile, buyers remain in limbo, and so does their money.

Buyers put down 20 percent deposits on the condos, originally priced between $700,000 and $6.5 million. Half of the money was put into escrow so it could be returned to buyers. The rest was turned over to SimDag and used for site preparation.

Don Wallace, who with his wife invested in two units, said buyers are ready for a resolution, no matter what that is. "Everybody wants closure," Wallace said of the Trump Tower buyers.

Wallace said that he feels bad for SimDag and said Dagostino is "doing all he can right now."

"The thing that messed this whole thing up is that Donald Trump didn't step in and make this happen," Wallace said. "If we all knew this was in the hands of a local developer, I certainly wouldn't want to buy a unit. With the Trump name behind it, we thought we'd be OK, even if problems arose."

Calls to Trump's office seeking comment were not returned.

A lawsuit over the naming rights for the tower continues between Trump and SimDag. The case is scheduled for trial in February.

Reporter Shannon Behnken can be reached at (813) 259-7804 or

sbehnken@tampatrib.com.