After having its tenancy drop this year, former President Donald Trump’s most treasured chunk of Manhattan property investment has been placed on a debt “watch list.” According to Bloomberg News, Wells Fargo, the primary mortgage lender of a $100 million loan on the building, released records on Friday revealing that Trump Tower’s occupancy had fallen below 80% this year, down from 86 percent at the end of last year. During the COVID-19 epidemic, some important tenants left the building or were severely in arrears on their large rent obligations.
Things took a turn for the worst for Trump when a wealthy renter chose to vacate the space
One of Trump Tower’s most prominent tenants, Marc Fisher Footwear, the former designer and maker of Ivanka Trump’s shoe line, chose to depart the premises early this year, putting an end to Trump Tower’s emptiness.
The Trump Organization later sued Marc Fisher for over $1 million in unpaid rent, but Bloomberg reports that suit appears to have been withdrawn.
Trump Tower’s Occupancy Percentage Has Been Declining Since Then
Trump Tower’s office and retail space, totaling 244,482 square feet (22,700 square meters), collateral the former president’s debt. Wells Fargo, the loan’s master servicer, reports that occupancy has fallen to 78.9% from an earlier estimate of 85.9%. The property was expected to generate $33.7 million in revenue by 2020, according to loan agreements. In the first three months of 2021, it was $7.5 million.
Trump is also owed rent by a dodgy business college, which also involves one of the Kardashians
According to a new Trump Organization lawsuit after being headed by Kardashian momager Kris Jenner, the dubious “business school” owes almost $200,000 in unpaid rent by October 2020. Although it was dubbed as a legacy business school, the school has produced nothing but shady actions. According to an investigation by the Daily Beast published on Tuesday, the New York State Education Department (NYSED) says that the institution is the renamed European School of Economics. In the United States alone, a for-profit business has been sued twelve times for failing to pay its obligations since 2006. one that the agency had been attempting to shut down legally for years.
MAGA-Another consistent supporter covering some of the deficit
Make America Great Again PAC, the political action committee founded by Donald Trump is one staunch supporter covering part of the gap. A whopping $37,561 in rent is being paid each month for only three workers, all of whom work from home most of the time.
As reported by the Washington Post, this may not be the most effective use of donor funds. According to the report, Trump Tower’s 15th floor has 5,490-square-foot office space that can employ 30 people.
Even though Donald Trump’s reelection campaign is over, his faithful contributors are still forking over large sums of money each year to rent space in his Manhattan building. In March, April, May, and June, Trump’s “Make America Great Again” political action committee, a rebranding of his campaign committee, paid $37,541.67 a month to keep 7,000 square feet on a lower floor Trump Tower in use. Even though he ran his campaign from a facility across the Potomac River from the White House in Northern Virginia, Trump spent the same amount on the same area throughout his four years as president.
The rental payments made to Trump’s different groups were revealed in the most recent FEC filings. In the first six months of 2021, Trump gathered $42.9 million for the MAGA Pac and his Save America “leadership” group despite his attempts to subvert American democracy after losing the election by 7 million votes. According to the latest FEC reports, Trump owns or controls $112.6, about $105 million accessible through Save America. By stating in several texts and emails to his list of small-dollar donors, Trump collected the great bulk of that money in December 2020. According to him, this money would be used to contest Joe Biden’s victory in other places and aid Republican Senate candidates in Georgia’s two runoff elections.
Trump is seeking to borrow money to pay off his debts
Trump has been working on generating revenue streams that might assist him in relieving some of his financial burdens, many of which involve soliciting donations from his ardent fans.
In her column, Eve Peyser of the Intelligencer writes that former President Donald Trump is scrambling to raise money because he faces a pile of debt in the coming years after leaving office. According to a statement from July, “More than $590 million in debt owed by the Trump Organization is due in the next four years, with Trump personally backing more than half of it. Included in this are the $100 million in Trump Tower Manhattan maturing shortly and the $125 million in Trump Doral golf facility in Miami due in 2023. “and that the former president is incapable of finding a banking ally who is prepared to aid in his dark times.