A $100 million loan on Trump Tower in midtown Manhattan was
placed on a watch list as vacancies in the building increase.
The loan’s master servicer Wells
Fargo said the loan was eventually placed on the list due to “lower
average occupancy.” media outlet Bloomberg reported on Friday.
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Occupancy has dropped to 78.9 percent
from 85.9 percent at the end of 2020, Bloomberg noted.
The Manhattan property generated $7.5
million in revenue during the first quarter of 2021, according to loan records.
The total revenue for the previous year was $33.7 million.
Former President Donald Trump is
the sponsor of the debt, which is backed by 244,482 square feet of office and retail
space in Trump Tower, according to the news organisation.
The loan will be due next year. It is
reportedly part of the Trump Organization’s more than $590 million in debt that
is due within the next four years.
According to Bloomberg, Trump personally
guarantees more than half of the money.
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During the COVID-19 epidemic, some
notable tenants have either left the premises or have fallen far behind on
their large rent payments.
Marc Fisher, who had a showroom on the 21st level of Trump Tower, “vacated prior to lease expiry.”
Said Bloomberg’s reports. The Trump Organization is seeking a new tenant
for the space.
The Trump Organization sued Fisher in
March for more than $1 million in unpaid back rent, as per Bloomberg. Fisher’s firm previously collaborated with
Ivanka Trump‘s fashion business, which is now defunct.
The case however was finally
dismissed, as claimed by Bloomberg.
Fisher’s showroom at Trump Tower in Manhattan is said to have taken up
10.8% of the building’s total leasable area. The Trump Organization, Gucci
America Inc., and ICC Industries are the property’s largest tenants, according
to Bloomberg.
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The
placement of the loan from Wells Fargo on a watch list comes after a few banks
said they were breaking relations with the former president and his firm due to the January 6 attack on the Capital.