A $100 million loan on Trump Tower in midtown Manhattan was placed on a watchlist Monday as vacancies in the building surge.
Occupancy decreased to 78.9% from 85.9% at the end of 2020, Bloomberg News reported, citing Wells Fargo, the loan’s master manager.
The loan was eventually moved to the listing due to “lower average occupancy,” according to information from Wells Fargo.
The Manhattan property generated $7.5 million in revenue during the first quarter of 2021, according to loan documents. For the whole of last year, revenues were $33.7 million.
The debt — which is secured by 244,482 square feet of office and commercial space in Trump Tower — is sponsored by former President Trump, according to Bloomberg.
The loan is expected to mature next year, according to Bloomberg. It is believed to be part of the Trump Organization’s more than $590 million in debt that is due over the next four years.
More than half of that money is personally guaranteed by Trump, Bloomberg reported.
When reached for comment, Eric Trump, one of the former president’s grown children, said: ‘Trump Tower is one of New York’s least leveraged commercial buildings and maintains fantastic cash flow. . We are incredibly proud of this building, home to some of the most prestigious tenants in the world and an icon of the Manhattan skyline.
Marc Fisher, who had a showroom on the 21st floor of Trump Tower, “vacated before the end of the lease,” according to a Wells Fargo memo cited by Bloomberg. The Trump Organization is reportedly looking to find a space replacement.
The Trump Organization in March sued Fisher for more than $1 million for unpaid rent arrears, according to Bloomberg. Fisher’s company previously worked with Ivanka Trump’s fashion line, which is no longer in business.
The lawsuit, however, was ultimately dropped, according to Bloomberg.
Fisher’s showroom in Trump Tower in Manhattan reportedly occupied 10.8% of the building’s gross leasable area. The property’s major tenants are the Trump Organization, Gucci America Inc. and ICC Industries, according to Bloomberg.
The placement of the Wells Fargo loan on a watchlist comes after a handful of banks announced they were cut ties with the former president and company after the Jan. 6 attack on the Capitol.
Florida-based Professional Bank, Deutsche Bank and New York-based Signature Bank have all taken such action.
The Hill has contacted Wells Fargo for additional information.
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