The mortgage has an outstanding balance of $122.6 million
Former President Donald Trump’s loan on his Manhattan tower at 40 Wall St. had been transferred to a special servicer, as reported in an article by Bloomberg.
The special servicer was Rialto Capital. Special servicers were often assigned to manage commercial mortgage-backed security loans that were in default or were at the potential risk of default.
Since there had been an increase in costs and vacancies, the Financial District building had been on a watchlist status since February 2023.
A filing on the building’s commercial mortgage-backed security stated that contact had been made with the borrower and that a letter detailing pre-negotiation terms was being reviewed.
Payments for the debt on the tower were reportedly paid for this month. The loan documents showed that the mortgage on 40 Wall St. had an outstanding balance worth $122.6 million which was down from the original price of $160 million.
“The loan is in full conformance,” said a spokesperson from the Trump organization in an email.
“We have never missed a payment, we have never paid late, and we have never breached a loan covenant. We are incredibly proud of 40 Wall St. and we will continue to operate this world-class building,” it said further.
The loan documents said that the mortgage had a 3.67% coupon and will mature in July 2025. As of June 30, the tower’s occupancy rate was 77%. This was a significant drop from the 98% it had when the loan originated in 2015.
Representatives from the Rialto Capital have yet to release their comments on the matter.
Trump is in the midst of a civil fraud trial and has been accused of inflating his wealth on financial statements along with co-defendants of duping banks, insurers, and others by Letitia James, the New York Attorney General. James is seeking fines and penalties which could include banning Trump from running a business in New York.
A judge in New York has issued an order to dissolve some companies that were owned by Trump which was temporarily delayed in the previous month due to an appellate judge as the trial went on.
Trump’s fortune is valued at $3.1 billion, an increase from the $2.6 billion recorded in 2021, as shown in the Bloomberg Billionaires Index.
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