Is THAT why he working to get the Republican Party to pay him to make money?
It seems that the properties are not fully paying their mortgage amounts either…
On top of this the Manhattan DA and NY State Attorney General are checking what The Trump Organization puts on the books for the properties vs what their real values should be, and the taxes they should be paying….
Donald Trump’s premier New York City real estate holdings — once the foundation of his fortune and fame — have increasingly become a problem for the former president.
Part of the reason is, which has taken a toll on many landlords. Yet the hit to Trump’s New York real estate operations is harder than the rest of the industry has experienced, and it comes after years of financial underperformance by the Trump Organization properties in some of the city’s swankiest neighborhoods.
Indeed, last year marked the fifth year in a row in which the four most prominent Trump-owned buildings in Manhattan, including the Fifth Avenue Trump Tower made famous by “The Apprentice” TV show, missed lenders’ earnings expectations, according to a CBS MoneyWatch review of publicly available documents.
COVID-19 has made the finances of the four buildings deteriorate further. As of January, three of the four Manhattan buildings had been flagged by mortgage-payment processors because of their worsening financial shape. That compares to one in four commercial loans industrywide that have been put on similar watch lists.
Commercial mortgages like the ones on Trump’s buildings are bundled by bankers into investment vehicles called commercial mortgage-backed securities. The CMBS are then sold to pension funds, mutual funds and other big investors who receive a bond-like interest payout that’s based on the income generated by the properties.
The four Trump properties have never met their CMBS income targets, the CBS MoneyWatch review found. In addition, Wells Fargo and other banks have told investors who have funded Trump’s loans that an income slump due in part to the “” means the buildings might not generate enough cash to cover their mortgage payments, according to banker notes to investors reviewed by CBS MoneyWatch. “The loan is being monitored,” said a note to investors in one CMBS deal tied to a Trump property from a unit of PNC Bank that services commercial mortgages….
The investigation by the Manhattan district attorney’s office initially targeted hush-money payments made during the 2016 campaign to adult film star Stormy Daniels by former longtime Trump attorney Michael Cohen. Prosecutors indicated in court filings last year that the probe has since widened to look at possible crimes as wide-ranging as fraud and tax evasion.
What is clear is that the four Manhattan buildings under Trump Organization management have not performed as lenders expected. The drop in profits last year is notable, especially for 40 Wall Street, because office real estate in general has weathered the economic slowdown fairly well, in part because of long-term leases that can lock in deals for years. The default rate of loans tied to office buildings was just 3% as of January, according to debt rating firm Moody’s. That’s up only slightly from 2.5% in February 2020, before the pandemic started ravaging the economy….