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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump Tower put on debt 'watch list' after occupancy plunged this year: report
This will be fun to watch. A good number of key tenants have moved out and no one wants to be associated with TFG. The lenders are evidently monitoring compliance with loan covenants
Link to tweet
Bloomberg News reports that Wells Fargo, which is the master servicer of a $100 million loan on the property, put out documents on Friday showing that Trump Tower's occupancy has dipped below 80 percent this year, down from the 86 percent occupancy recorded at the end of 2020.
The biggest blow to Trump Tower's vacancy came earlier this year when Marc Fisher Footwear, the former designer and manufacturer of Ivanka Trump's shoe line, vacated its massive showroom that occupied the entire 21st floor of the building.
The Trump Organization would subsequently sue Marc Fisher for more than $1 million in what it claimed was unpaid rent, although that case has apparently been dropped, Bloomberg writes.
Bloomberg notes that the former president could be facing a series of financial headaches over the next few years thanks not only to the $100 million Trump Tower loan coming due, but other loans as well.
spooky3
(34,476 posts)They deserve each other.
captain queeg
(10,242 posts)LiberalFighter
(51,085 posts)malaise
(269,157 posts)The Slobfather was put on the death watch list after plunging from Trump Tower
LetMyPeopleVote
(145,558 posts)This could be a start of a fun bankruptcy that I doubt that TFG will be able to dig himself out of
PJMcK
(22,048 posts)Excellent!
I've been hoping he'd jump from that Tower for a very long time.
Sadly he's a real coward.
Response to PJMcK (Reply #8)
malaise This message was self-deleted by its author.
LiberalArkie
(15,728 posts)Response to LetMyPeopleVote (Original post)
malaise This message was self-deleted by its author.
11 Bravo
(23,926 posts)Everything he touches turns to shit. (Example A: The Republican Party)
AngryOldDem
(14,061 posts)Good book, BTW.
PJMcK
(22,048 posts)However, the Republican Party started their toilet bowl swirl years ago. Trump was just the latest and worst, so far in a long line of evil jackasses.
11 Bravo
(23,926 posts)Sure, Reagan was a grinning, soulless shitweasel who earned his place in Hell by gleefully ignoring the AIDS crisis; but for my money Goldwater was the original harbinger of things to come for the Repugs.
LiberalArkie
(15,728 posts)full force and made it normal to rape and pillage. To sell arms to people who had held Americans hostages (the R's probably financed the Iranian revolution. Only way I could see the whole Iran/Contra play play out).
malaise
(269,157 posts)ReTHUGs were heading. True it started with Nixon but Palin blew my brains
Response to PJMcK (Reply #11)
malaise This message was self-deleted by its author.
Champp
(2,114 posts)Meanwhile, all the Republicans scurry about mindlessly, spouting lies no one wants to hear.
AngryOldDem
(14,061 posts)PJMcK
(22,048 posts)If Trump defaults on one loan, the other l lenders will tighten their grips. Trump will be in big trouble.
Mr.Bill
(24,319 posts)they need to know this is what they are supporting.
I do hope some responsible people in our government are watching what he is doing with that money.
Hugh_Lebowski
(33,643 posts)GQP pols just do whatever they want with it and nobody does shit (or they get pardoned by a shitheel POTUS of theirs).
At least, that's how it sure seems to me.
PatSeg
(47,589 posts)A different set of rules for republicans.
stillcool
(32,626 posts)I don't know the law that these people have at their disposal. Here's some oldies but goodies in TFG saga.
Trump boosts loan on Doral golf resort
By Brian Bandell Senior Reporter, South Florida Business Journal
Aug 13, 2015, 9:59am EDT
While campaigning for president and raising almost daily controversies, billionaire Donald J. Trump took out a second mortgage for the Trump National Doral Miami on Aug. 7.
Trump Endeavor 12 LLC received a $19 million loan from Deutsche Bank Trust Co. Trump signed the document himself.
Thats the same lender that gave the resort and golf course a $106 million loan in 2012, when Trump acquired the property.
The recent loan is a tranche B note, which has less priority in the case of a default than the 2012 tranche A note and, therefore, has a lower credit rating.
Trump purchased the 650-acre property for $150 million and spent more than $200 million on renovations to its 693 rooms and five golf courses.https://www.bizjournals.com/southflorida/news/2015/08/13/trump-boosts-loan-on-doral-golf-resort.html
Its highly disconcerting.
RUSS CHOMAJULY/AUGUST 2020 ISSUE
Trumps biggest creditor is Deutsche Bank, which in the late 1990s took a gamble on the real estate developer whose history of corporate bankruptcies made him untouchable by most other lenders. Although Trump and the Frankfurt-based bank pulled off several profitable deals, eventually Deutsches commercial lending division learned the hard way one reason why other banks considered him persona non grata: If pushed by his creditors on payments, Trump shoves back. In 2008, after he defaulted on a loan for his Chicago hotel and condo development, he filed a multibillion-dollar suit accusing Deutsche Bank and others of contributing to the recent financial meltdown, which he blamed for his inability to repay the loan.
Nevertheless, Deutsches private banking division, which caters to wealthy clientele, continued to lend to Trump, giving him $125 million, spread over two loans, to finance the purchase and renovation of his Doral golf resort in 2012. Both are floating rate loans, meaning the interest rate fluctuates based on market conditions, which lending experts say usually indicates they are interest-only loans. If so, Trump probably hasnt paid down much if any of the principal and will owe something close to the whole $125 million when the loans come due in 2023.
In 2014, Trump took out a separate floating loan from Deutsches private bank to bankroll the development of his luxury hotel in Washington, DC. The balance of this $170 million debt is payable in 2024. That year, Trump will also owe Deutsche between $25 million and $50 million in connection with his Chicago hotel and complex.
Trump has received additional loans from a company named Ladder Capital, a financial firm that specializes in bundling commercial debt into mortgage-backed securities. Companies like Ladder are often lenders of last resort for people and companies that, for one reason or another, have difficulty obtaining money from traditional banks (ahem, Trump). Such firms are willing to take risky bets because they securitize the debt and pass the responsibility for it on to investors. Trump has two Ladder loans due over the next several years: a $100 million interest-only mortgage on Trump Tower and a roughly $13 million loan against Trump Plaza. The Trump Tower loan is up in September 2022.https://www.motherjones.com/politics/2020/06/donald-trump-loans-deutsche-bank/
kentuck
(111,110 posts)He should have no problem hiding them.
When was the last time they were seen together?
Beacool
(30,251 posts)Demovictory9
(32,475 posts)PatSeg
(47,589 posts)but eventually this sort of thing will catch up with him. He's pushed his luck far too many times and the house of cards is going to come tumbling down.
Tommy Carcetti
(43,198 posts)
Trump Tower just seems to be one ugly building.
It looks frozen in time from the mid 80s, as if no one bothered to update it, and now looks ridiculously dated and faded.
It just looks like one sad, sad building, even if you put aside the owners name on it.
PatSeg
(47,589 posts)is even worse. I'm probably biased being I'm from Chicago and every time I see that crappy building it makes me ill.
Kid Berwyn
(14,958 posts)The know-nothing of all know-nothings DOES appreciate fabric swatches.
Trump is a moron fixated by fabric swatches.
Trump, the billion-dollar loser I was his ghostwriter and saw it happen
Charles Leerhson
Yahoo.com, May 9, 2019
EXCERPT...
I tend to see my time with him the first part of it, anyway, before things started going bad in a hurry as his King Midas period. I never said this to him; if I had, he probably would have thought I was suggesting he enter the muffler business. But there was a stretch of months when everything he touched turned into a deal. The banks seemed to accept the version of him depicted in his first book, The Art of the Deal, which we now know from his previous ghostwriter, Tony Schwartz, was entirely invented. They believed it over what they saw on his balance sheets or heard coming out of his mouth, and they never said no to his requests for more money. Often they came up with things he could say yes to before he could think of them himself. As a result, a failing real estate developer who had little idea of what he was doing and less interest in doing it once hed held the all-important press conference wound up owning three New Jersey hotel-casinos, the Plaza Hotel, the Eastern Airlines Shuttle and a 281-foot yacht.
A real go-getter, right? But Trumps portfolio did not jibe with what I saw each day which to a surprisingly large extent was him looking at fabric swatches. Indeed, flipping through fabric swatches seemed at times to be his main occupation. Some days he would do it for hours, then take me in what he always called his French military helicopter to Atlantic City where he looked at more fabric swatches or sometimes small samples of wood paneling. It was true that the carpets and drapes at his properties needed to be refreshed frequently, and the seats on the renamed Trump Shuttle required occasional reupholstering. But the main thing about fabric swatches was that they were within his comfort zone whereas, for example, the management of hotels and airlines clearly wasnt. One of his aides once told me that every room at the Plaza could be filled at the rack rate (list price) every night, and the revenue still wouldnt cover the monthly payment of the loan hed taken out to buy the place. In other words, hed made a ridiculous deal. Neither he nor the banks had done the math beforehand. Or perhaps Trump knew it because someone had told him, but didnt want to think about it. The one thing he is above-average at is compartmentalization.
Source:
https://news.yahoo.com/trump-the-billiondollar-loser-his-ghostwriter-recalls-the-king-midas-years-090000640.html
The guy seems to have more of the money laundromat business acumen.
PatSeg
(47,589 posts)Wounded Bear
(58,709 posts)LetMyPeopleVote
(145,558 posts)Link to tweet
The debt, sponsored by the former president himself, is secured by the 244,482 square feet (22,700 square meters) of office and retail space in Trump Tower. Occupancy has dipped to 78.9% from 85.9% at the end of 2020, according to Wells Fargo, the master servicer of the loan. Revenue from the property was $33.7 million in 2020, according to the loan documents. In the first quarter of 2021, it was $7.5 million. ....
Marc Fisher, whose showroom occupied the 21st floor of Trump Tower, vacated prior to lease end, Wells Fargo said in the note, adding that the Trump Organization is trying to find a replacement. In March, Trumps company sued the footwear maker, which used to partner with Ivanka Trumps now-defunct fashion line, for more than $1 million in unpaid back rent. It later dropped the lawsuit, according to court records.
Fishers space was 10.8% of the gross leasable area of Trump Tower, whose largest current tenants are the Trump Organization itself, Gucci America Inc. and ICC Industries, according to the information compiled by Wells Fargo. Trump is current on payments for the $100 million mortgage.