Trump SoHo, the flashy 46-story downtown hotel and condominium, is taking another unusual step to boost sluggish condo sales—offering substantial discounts to buyers who have already signed contracts but not yet closed.

These discount offers run to around 25% of the agreed-upon purchase price, according to documents reviewed by The Wall Street Journal. They're being used as a special encouragement to convince buyers who might be getting cold feet to close their deals.

Discounts are being offered to prod Trump SoHo buyers to close. Keith Bedford for The Wall Street Journal

Rodrigo Nino, president of Prodigy International, the sales and marketing company for Trump SoHo, declined to discuss the size of the discounts or how many buyers have accepted them. He said Trump SoHo "is not unilaterally offering concessions. The requests have been handled on a case-by-case basis."

Even taking into account these markdowns, Mr. Nino added, "the average net closing price is in excess of $2,500 per square foot."

The price cuts aren't the first measure Trump SoHo has taken to get committed buyers to close on their deals. The developers, the Sapir Organization and Bayrock Group, are putting together a plan to offer direct financing to potential buyers who can't secure enough credit to purchases condos. Mr. Nino said the program would be implemented "shortly."

Both offers underscore the challenges this high-profile project has faced in attracting buyers in a recovering market. About a quarter of the 391 condo units at the Trump SoHo are in contract, but only about 23 of those sales have closed.

Trump SoHo's developers are facing pressure from more than $250 million in construction loans owed to iStar Financial Inc. Despite strong occupancy rates at the hotel and revenue that is exceeding internal forecasts, condo sales at Trump SoHo need to pick up for the project to succeed financially.

Istar declined to comment.

While Manhattan's luxury market has rebounded slightly, sales at the Trump SoHo have been particularly difficult. Under the zoning rules that allowed the project to move forward, condo owners are permitted to stay in them no more than 120 days a year. On other days, they're part of the hotel operation.

Donald Trump hasn't invested money in the project but his company, the Trump Organization has a licensing and management agreement that allows the development to use the Trump name. The deal gives Mr. Trump and his children—Eric, Ivanka and Donald Jr.—an equity stake of about 18% in the project.

The property took on national prominence in 2006 when Donald Trump unveiled it on his TV show, "The Apprentice."

Write to Craig Karmin at