Deutsche Bank AG sued Donald Trump over the developer's troubled Chicago condominium and hotel project, in a further sign of the deteriorating situation among lenders and borrowers in commercial real estate.
The suit, filed in New York state Supreme Court in Manhattan on Friday, demands Mr. Trump pay a $40 million personal guarantee connected to a $640 million construction loan that Deutsche Bank originated in 2005. That loan came due Nov. 7 with an outstanding balance of $334 million.
Mr. Trump didn't return a request for comment. A Deutsche Bank spokesman declined to comment.
The Trump International Hotel & Tower is slated to be the second tallest building in the U.S., behind Chicago's Sears Tower, and is expected to be completed next year. The lower floors, which contain the hotel, opened early this year.
Mr. Trump sued Deutsche Bank in early November in New York state court seeking an extension on the loan, claiming the financial crisis had triggered the force majeure provision of his loan contract. Force majeure comes into effect during catastrophic events such as wars or natural disasters. The court rejected the argument.
Write to Alex Frangos at alex.frangos@wsj.com
Correction & Amplification
A New York State court rejected developer Donald Trump's request for an immediate order requiring his lenders to extend a loan on a Chicago hotel and condominium project. This article incorrectly said the judge rejected Mr. Trump's argument that the loan should be extended based on the force-majeure provision of Mr. Trump's loan document. The court has yet to determine the validity of the argument.
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