Trump Tower debt added to watch list as vacancies rise

A $100 million loan on Trump Tower in midtown Manhattan was placed on a watch list Monday as vacancies in the building increase.

Occupancy has decreased to 78.9 percent from 85.9 percent at the end of 2020, Bloomberg News reported, citing Wells Fargo, the master servicer of the loan.

The loan was ultimately moved to the list because of “lower average occupancy,” according to information from Wells Fargo.

The Manhattan property had $7.5 million in revenue during the first quarter of 2021, according to loan documents. For last year as a whole, revenue was $33.7 million.

The debt — which is secured by 244,482 square feet of office and retail space in Trump Tower — is sponsored by former President Trump, according to Bloomberg.

The loan is set to mature next year, according to Bloomberg. It is reportedly part of the more than $590 million in debt the Trump Organization has that is due within the next four years.

More than half of that money is personally guaranteed by Trump, Bloomberg reported.

When reached for comment, Eric Trump, one of the former president’s adult children, said, “Trump Tower is one of the most underleveraged commercial buildings in New York City and maintains fantastic cash flow. We are incredibly proud of this building, which has some of the most prestigious tenants in the world and is an icon of the Manhattan skyline.”

Marc Fisher, who had a showroom on the 21st floor of Trump Tower, “vacated prior to lease end,” according to a note from Wells Fargo cited by Bloomberg. The Trump Organization is reportedly looking to find a replacement for the space.

The Trump Organization in March sued Fisher for more than $1 million over unpaid back rent, according to Bloomberg. Fisher’s company previously worked with Ivanka Trump’s fashion line, which is no longer in operation.

The lawsuit, however, was eventually dropped, according to Bloomberg.

Fisher’s showroom in Trump Tower in Manhattan reportedly took up 10.8 percent of the gross leasable area of the building. The biggest tenants on the property are the Trump Organization, Gucci America Inc. and ICC Industries, according to Bloomberg.

The placement of the loan from Wells Fargo on a watch list comes after a handful of banks announced that they were cutting ties with the former president and his company following the Jan. 6 attack on the Capitol.

Florida-based Professional Bank, Deutsche Bank and New York-based Signature Bank have all made such moves.

The Hill reached out to Wells Fargo for additional information.