As Trump Tower Vacancies Soar, $100 Million Loan Moved To “Watch List”
The post-presidential financial squeeze on Donald Trump got a bit tighter this week. A $100 million loan on his signature Trump Tower on Fifth Avenue in Manhattan was moved to a watch list Monday because of “lower average occupancy,” according to information compiled by Wells Fargo & Co. and first reported by Bloomberg.
The debt, personally guaranteed by the twice-impeached former president himself, is secured by the 244,482 square feet of office and retail space in Trump Tower. Current occupancy has dropped to 78.9 percent from 85.9 percent at the end of 2020, according to Wells Fargo, which is the master servicer of the loan. The property generated $33.7 million in revenue year, according to the loan documents. In the first quarter of 2021, it was just $7.5 million. In the past year a number of high-paying tenants in the Manhattan skyscraper have fallen millions of dollars behind on rent, declared bankruptcy and moved out.
Trump is said to be current on payments for the $100 million mortgage, but that loan is just a fraction of the more than $590 million of debt held by the Trump Organization that comes due within the next four years. More than half of that is personally guaranteed by Trump. How he plans to refinance is a burning question. Deutsche Bank AG, one of the last remaining banks that would do business with him, cut ties after he incited the deadly Jan. 6 riot at the U.S. Capitol. Among the outstanding loans Trump has with the bank is $125 million for his Doral, Florida, golf resort that matures in 2023.
And he owes more than $150 million in debt tied to the Old Post Office building in Washington, D.C., which now houses a Trump International Hotel. The Trump Organization has been looking for a buyer for that property, where the debt matures in 2024. The hotel, once the favorite haunt of Trump Republicans, has seen its business drop dramatically since Trump has been out of office.