Trump Tower lands $100 million refinance deal with online bank run by GOP donor

Trump Tower in New York

Former President Donald Trump’s family business secured a $100 million mortgage to refinance its iconic Manhattan property with an online bank.

Eric Trump, acting as President of Trump Tower Commercial LLC, signed the mortgage document for 725 Fifth Ave., also known as Trump Tower, with San Diego-based Axos Bank on February 15 in New York . property records show.

Axos’ loan to The Trump Organization was signed the day after the real estate company’s longtime accounting firm, Mazars, dropped him as a client and sent a letter, filed in court by the prosecutor New York general, Letitia James, saying the financial records he prepared for the company between 2011 and 2020 were no longer reliable.

Axos is led by CEO Greg Garrabrants, who has donated $50,000 to Republican campaigns since 2012, including $9,600 to Trump, federal election records To display. The bank loaned the money to the Trump Organization despite a $100 million loan for the skyscraper being placed on a Wells Fargo debt watchlist in September, Bloomberg reported.

The skyscraper has struggled to be busy for some time, dropping from 85% at the end of 2020 to 78.9% last year, Bloomberg reported in September. About $590 million of debt held by The Trump Organization was set to mature over the next few years, Bloomberg reported in September, including the Trump Tower’s $100 million mortgage, which was set to come due in September.

Eric Trump and his brother Donald Trump Jr. have led the Trump Organization since 2017, when their father was named president.

One of the skyscraper’s other largest tenants, footwear brand March Fisher, whose showroom occupied 10% of Trump Tower’s rental space, left the property before the end of its lease after being unable to pay the rent, according to Bloomberg. Several other tenants, including costume maker Marcoft and a trade school once owned by Kris Jenner, also fell behind rent by tens of thousands of dollars in 2020 and moved out of their spaces, the Washington Post reported last year.

Trump Tower circumvented declining occupancy rates in 2020 by renting newly available space to itself, with the Make America Great Again PAC paying to rent office space on the 15th floor in March 2021, according to the Post.

The skyscraper’s previous mortgage was provided by Ladder Capital and is part of the criminal investigation into Donald Trump’s financial dealings, The real deal paid off. The criminal investigation may now be on shaky ground after two prosecutors resigned last month, but the Trump Organization also faces an ongoing civil investigation, including key leaders who are being pressured to testify. from James.

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David A. Albanese