Bayrock Group
| Company type | Private |
|---|---|
| Industry | Real estate investment and development |
| Founded | 2001 |
| Founder | Tevfik Arif |
| Headquarters | United States |
Area served | International |
| Products | Residential, commercial, and mixed-use real estate developments |
Bayrock Group is a privately held real estate investment and development company focusing on upscale residential, commercial, and mixed-use ventures. Through its affiliated entities, Bayrock has allocated capital to real estate holdings exceeding $2.5 billion in value. Its adaptable operational framework allows participation across various industries and geographic markets.
Corporate structure
Established in 2001 by Tevfik Arif, a former Soviet official originating from Kazakhstan, Bayrock functions as a network of commonly managed but not entirely owned limited liability companies. Bayrock Group LLC maintains majority or significant ownership stakes in roughly a dozen subsidiary holding companies, which oversee additional subsidiaries dedicated to particular real estate developments. Notable examples include Bayrock Spring Street (Trump SoHo), Bayrock Camelback (hotel in Phoenix), and Bayrock Merrimac (Trump Fort Lauderdale hotel). Additional entities under its umbrella include Bayrock Whitestone and Bayrock Ocean Club.
The company has cultivated strategic alliances with global investors, most prominently the Icelandic investment firm FL Group, which has bolstered its international reach and market presence.
Loehmann's Seaport Plaza
Bayrock initiated its development efforts in Brooklyn by revitalizing Loehmann's Seaport Plaza, a 280,000-square-foot waterfront retail complex located in Sheepshead Bay. Prominent tenants comprised Loehmann's and Nine West Shoes.
Trump International Hotel & Residence
In 2003, Bayrock acquired a bankrupt site within Phoenix’s Camelback Corridor, envisioning a $200 million Trump International Hotel & Residence project. This development was designed to include 97 private residences starting at $950,000 alongside 188 hotel and condominium units. Although the Phoenix City Council and Planning Commission approved the plans in 2005, opposition from the public ultimately prevented the project’s completion.
Moscow high-rise
In 2005, Donald Trump entered into a one-year partnership with Bayrock Group to pursue a high-rise development in Moscow. The plan involved securing Russian investors and a site formerly occupied by a pencil factory named after Sacco and Vanzetti. Bayrock aimed to execute large-scale projects reminiscent of Las Vegas high-rises and proposed a 2007 agreement between Trump International Hotel and Russian investors. Nevertheless, this initiative failed to come to fruition.
Trump SoHo
The Trump SoHo is a $450 million, 46-story condo-hotel hybrid featuring 39 units at 246 Spring Street in SoHo, New York City. This venture was a joint undertaking among Bayrock, The Trump Organization, and the Sapir Organization, owned by Georgian developer Tamir Sapir. Donald Trump contributed his name under license for an 18% ownership interest.
In 2007, Bayrock secured $50 million in financing from Icelandic firm FL Group by trading future earnings from Trump SoHo along with other projects.
Trump International Hotel and Tower (Fort Lauderdale)
Bayrock collaborated with Trump on developing the Trump International Hotel and Tower located in Fort Lauderdale, Florida. Their partnership concluded in 2008 following the downturn of the housing market.
Controversies
In 2007, investor Ernest Mennes initiated legal action accusing Bayrock of diverting funds from a Trump development project in Phoenix, Arizona. Felix Sater, an employee of Bayrock, was reportedly involved in intimidating Mennes; the dispute was ultimately resolved through confidential settlements.
Two former Bayrock executives, Jody Kriss and Michael Chudi Ejekam, filed a lawsuit in 2010 alleging that Sater’s involvement was deliberately hidden and that the company operated under clandestine mob influence. This lawsuit was settled privately without any admission of wrongdoing.
In 2011, the interior design company Rockwell Group brought suit against Bayrock and the Sapir Organization over unpaid services related to Trump SoHo. Bayrock responded with a countersuit, but both claims were eventually withdrawn.
A 2015 whistleblower lawsuit accused Bayrock executives Arif and Sater of engaging in tax fraud; however, a New York court dismissed the case.
Felix Sater held the position of managing director at Bayrock from 2003 until 2008. His departure followed revelations about his criminal history, which included a 1991 assault conviction and participation in a $40 million stock fraud connected to the Russian-Jewish Mafia. Subsequently, Sater acted as an FBI informant aiding investigations into organized crime.