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Trump Just Got a Lifeline Out of His Debt Hole—or Did He?

1 31 27
30.04.2021

zz/Dennis Van Tine/STAR MAX/IPx

Donald Trump loves to boast about his empire of hotels, golf resorts, and high-end condos, but a large chunk of his wealth actually derives from another source altogether. Of Trump’s estimated $2.5 billion net worth, about $780 million is tied up in a partnership with Vornado Realty Trust, one of the largest commercial real estate firms in the country. Together, Trump and Vornado own two high-profile office buildings on opposite coasts—1290 Avenue of the Americas in New York City and 555 California Street in the heart of San Francisco’s financial district. Trump holds a minority, 30 percent stake in the venture, and he has no say in how the buildings are operated, nor do they bear his name. But the former president might be about to get a big and desperately needed payday in connection with this enterprise.

Earlier this week, Bloomberg reported that Vornado had successfully refinanced the California Street property with a $1.2 billion loan from JPMorgan, pulling out $617 million in equity in the process. This could be great news for Trump. Over the four years he spent in the White House, revenues at nearly all of his businesses declined, his company struck few new deals (and no new foreign deals), and the luxury condo sales that had previously provided a steady stream of cash all but ceased (with some notable exceptions). And the pandemic made a bad situation worse.

Meanwhile, Trump has a lot of debt. He came into office owing as much as $640 million, according to his personal financial disclosure filings. And, with his presidency over, many of those loans are now coming due. Trump owes as much as half a billion dollars to various lenders in the next four........

© Mother Jones


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