When New York City was attacked on 9/11, Donald Trump disgracefully boasted that his skyscraper at 40 Wall Street was now the tallest in the city. That was a lie, and karma is now biting the one-term loser in his massive derriere. Trump’s most valuable property, has a mortgage balance of $126.5 million, and it was just placed on a lender watchlist due to the increase in vacancies and costs.
Bloomberg reports:
The vacancy rate at the 72-story building, Trump’s most valuable skyscraper, climbed to almost 18% as of last year’s third quarter, and expenses rose 11% since the mortgage’s 2015 origination, according to a monthly filing on the loan, which has a current balance of $126.5 million. The servicer, Wells Fargo & Co., “has reached out to the borrower for a status of leasing developments” and plans to improve the property’s performance, according to the filing.
Trump acquired the building in 1995 in what his firm describes as “one of the great real estate deals of all time.” The property was appraised at $540 million in 2015. Major tenants include Country-Wide Insurance Co., engineering firm Thornton Tomasetti and coworking provider Jay Suites.
Trump Organization has leased more than 100,000 square feet (9,300 square meters) at the building since 2022 and has an additional 40,000 square feet of leasing agreements pending, according to a statement.
“This is unheard of in the current NYC environment,” the company said. “Very few landlords have come close to these accomplishments.”
Office values have been declining in lower Manhattan for years as vacancies rose.The pandemic exacerbated the problem by making remote work commonplace and reducing demand for space.
Well, shucks, maybe if Trump had not mishandled Covid, this wouldn’t have happened. Everything that goes around, comes around.
