Trump Organization settles $160 million loan on Manhattan office tower
President Donald Trump’s family organization has paid off in full in cash the $160 million loan on its 40 Wall Street office tower in Manhattan, a Trump Organization spokesperson said on Monday, highlighting how the company’s fortunes have improved since Trump’s re-election last year. Trump has cited 40 Wall Street, a 72-story landmark building in the financial district of lower Manhattan which he bought for $1 million, as one of his most successful real estate investments ever. In recent months, his family business has struck lucrative licensing deals with developers and ventured into cryptocurrencies, yielding significant revenue.
The loan on 40 Wall Street was extended by Ladder Capital in 2015 with a low interest rate of 3.67%, as per a financial disclosure released earlier this month. Despite prevailing interest rates for similar buildings being nearly double, analysts had speculated on the challenges the Trump Organization might face in refinancing the debt.
Trump’s financial disclosure revealed he had liquid assets amounting to hundreds of millions of dollars held in a revocable trust by the end of 2024, providing the business with the flexibility to avoid costly debt obligations, a strategy employed by other property investors.
Fitch ratings indicated a decline in occupancy at 40 Wall Street to 74.4% as of September 2024, with income levels below those of a decade ago. Nevertheless, there were no defaults on the loan, according to Morningstar Credit’s head of CRE analytics, Dave Putro.
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