President Trump’s Family Real Estate Company sought Relief from Lenders this year for a Retail Property it owns in Manhattan, New York.
The Stretch of Storefronts at the base of Trump Plaza on the Upper East Side, whose Tenants have included a Vitamin Shop and a Mephisto Shoe Outlet, is a Minor Part of the Trump Organization’s International Portfolio of Hotels and Resorts. But it Provides a Glimpse into how the President’s own U.S. Businesses are Handling the Coronavirus Pandemic, which has Battered Retailers and the Economy.
According to Investor Disclosures filed last month, the Trump Organization asked its Lenders for Covid-Related Relief on the Loan against the Retail Space. The sides were working toward a “possible solution,” according to One Disclosure that did Not provide Details of what the Company sought or whether any Concessions were Received.
Landlords that have had a Hard time Collecting Rent from Tenants during the Crisis have looked for ways to Curb their own Financial Burden, including Temporary Reductions in Interest Payments and Extended Repayment Periods.
In Europe, Trump-linked Golf Resorts have sought U.K. and Irish Relief Money for Employees.
In the U.S., however, Congress put Language in the Cares Act that Barred Trump-Controlled Companies from Tapping some Rescue Facilities. But Trump’s U.S. Business has Engaged its Biggest Lender, Deutsche Bank, in Talks about Relief.
Businesses Owned by the President, Senior Government Officials, and their Immediate Families are Ineligible for Funds Distributed through the Economic Stabilization Fund. A Business Falls into this Category if it is at least 20% Owned or Controlled by a Person in the Restricted Group. Trump is still the Majority Owner of the Trump Organization and All its Subsidiaries.
The Trump Plaza Retail Property was Appraised at $41 million in 2014 when the Trump Organization Refinanced it with a $15 million Loan from Ladder Capital. That Commercial Mortgage Firm also made Loans backed by the Commercial Spaces at Trump’s Flagship Trump Tower and the Office Building at 40 Wall St., New York City.
The Ladder Capital Loans were later Bundled with Other Real Estate Loans and Sold to a Broad Base of Investors. They have Loan-to-Value Ratios below 50%, indicating Relatively Conservative Debt Issuance.
Documents show that Midland Loan Services, a Division of Pittsburgh-based PNC Financial Services Group, Services the Trust that contains the Loan.
As the Pandemic hit Retail and Service Businesses this spring, Tenants at Trump Plaza, on Third Avenue between East 61st and 62nd streets, included the Shoe and Vitamin Sellers, as well as the, Upper East Cafe, where a Wagyu Kobe Burger goes for $25.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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