Donald Trump’s Manhattan building loan extension shows his debt options
Michael Cohen, Trump’s former lawyer and fixer, has a unit there. Other owners include former baseball star Alex Rodriguez. When Ivanka Trump and Jared Kushner lived in the apartment building, Rupert Murdoch and his then wife Wendi Deng were reportedly among their neighbors, Deng said in 2010.
It has since lost part of its cachet. Seven of the eight units listed on StreetEasy last year failed to sell. Most were then rented out. A one-bedroom ninth-floor condo that was listed at $ 2.1 million in 2019 could be rented for $ 3,600 per month last week. The Trump organization developed the building and still owns more than a dozen units, which are collateral for the mortgage.
Brian Doran, general counsel for the parent company of Investors Bank, declined to comment.
Doral seaside resort
The Trump Organization has an estimated debt of nearly $ 600 million due over the next four years. This includes loans related to the Trump Tower in New York and the Doral Golf Resort outside Miami, where revenues fell to $ 44 million last year from $ 77 million a year earlier.
With longtime lender Deutsche Bank refusing to work with the former president and companies distancing themselves from the family business, questions have been raised about how easily debt can be refinanced.
Trump’s business is said to be far from the only one to change loan terms during the Covid-19 pandemic. There has been a significant increase over the past year in commercial mortgage changes, particularly in New York City, as the pandemic has destroyed property valuations, halted foreclosures and evictions, and allowed millions of people temporarily stop paying their rent.
More than 10% of all commercial mortgages that have been consolidated into titles have sought some sort of creditors relief during the pandemic, said Manus Clancy, senior managing director of data provider Trepp. Most of those debtors were hotels and retail businesses, he said. Residential property owners still face similar levels of distress.
Representatives of the Trump Organization did not respond to a request for comment.
The mortgage on the Trump Park Avenue building was one of the few loans maturing during his tenure as president. Three mortgages were paid off in 2017, while the maturity date of a loan for his Seven Springs estate in Mount Kisco was extended to 2029 from 2019. The rate on this mortgage was reduced from 4% at 4.5%.