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A $ 100 million loan to Donald Trump’s flagship Trump Tower in Manhattan has been placed on a “watch list” by Wells Fargo Bank due to disturbing “below-average occupancy” in the building.
The occupancy rate has fallen from 85.9% at the end of last year to 78.9% today, according to Wells Fargo, the “master servicer” of the loan, Bloomberg reported on Friday.
Real estate income was $ 33.7 million in 2020 and $ 7.5 million in the first quarter of this year, according to loan documents, Bloomberg noted.
Some key tenants have either left the building or fallen far behind on their high rents during the COVID-19 pandemic.
The company that once made shoes for former first daughter Ivanka Trump, for example, was in arrears of $ 1.4 million, according to a lawsuit filed by the Trump Organization earlier this year. Marc Fisher Footwear occupied the entire 22nd floor and part of the 23rd floor in the trendy old Fifth Avenue skyscraper that was Trump’s primary residence and the setting for his reality TV series “Apprentice.”
A shady “business school” once chaired by Kardashian mother Kris Jenner owed nearly $ 200,000 in previous rents in October 2020, according to another Trump Organization lawsuit.
A steadfast tenant that makes up for some of the shortfall: Donald Trump’s Make America Great Again PAC pays a staggering monthly rent of $ 37,561 in the building for offices for just three employees – who often work from home.
“This may not be the most efficient use of donor money,” joked The Washington Post, which first reported on the sparsely populated space. The newspaper noted that the 5,490 square foot space on the 15th floor of the Trump Tower could comfortably accommodate 30 workers.
Trump has a reputation as a hugely successful businessman with many Americans, a profile cultivated in his reality series “Apprentice”. But he declared bankruptcy several times and was the subject of several lawsuits for his debts.
Bloomberg reported that Trump’s main lender, Deutsche Bank AG, severed ties with him following the Jan.6 attack on the United States Capitol by his supporters.
Trump has a $ 125 million loan from Deutsche Bank for his golf resort in Doral, Florida, which matures in 2023, according to Bloomberg. He also owes more than $ 150 million in debt to the Trump International Hotel in Washington, DC. The Trump Organization may be on the verge of selling its rental rights to this building.
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