$ 100 million loan to Trump Tower in Manhattan has been placed on bank watch list, due to lower occupancy, reports show



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A $ 100 million loan on Donald Trump’s Fifth Avenue tower has been placed on a debt watch list, according to data from banking giant Wells Fargo.

Bloomberg first reported the story on Friday, noting that the move was the result of “lower average occupancy.”

Wells Fargo, which is the prime contractor for the loan, said the occupancy rate had fallen to 78.9% from 85.9% at the end of 2020, according to the outlet.

Real estate income from the building was $ 33.7 million in 2020 and $ 7.5 million in the first quarter of this year, according to loan documents, Bloomberg noted.

The Trump Organization did not immediately respond to Insider’s request for comment.

The insider’s Kelsey Vlamis has previously reported other financial issues to Trump Tower.

Recently, several tenants have fallen behind on the rent. The Trump Organization sued the maker of Ivanka Trump’s shoe line earlier this year for $ 1.5 million in unpaid rent, according to reports.

Some of Trump’s properties elsewhere in the United States have also come under scrutiny. The former president’s property tax was reduced for his Chicago office tower because the building’s commercial space was mostly vacant, the Chicago Sun-Times first reported.

The estimated value of the retail space in this building has been reduced to $ 12.5 million from $ 19.9 million, reported Kevin Shalvey of Insider. The assessed value was reduced by around 37% as around 95% of the area was vacant, according to the report.

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