July 20, 2023


While Defendant Trump Faces Oncoming Indictments, His Business Is Failing (Lucian K. Truscott IV, July 20 | 2023, National Memo)

The Bulwark also broke a story early Wednesday afternoon about the problems Defendant Trump is having in his real estate business. He owns an interest in two major office towers, one in New York, and the other in San Francisco, at a time when rentals of office space in major metropolitan areas are plummeting because of work-at-home policies that came out of the COVID days. The New York building was refinanced by Defendant Trump in 2021, taking on $950 million of new debt. Under the terms of his partnership in the building, he cannot sell his interest until 2044, and it's losing money at a breakneck clip.

In San Francisco, Defendant Trump owns 30 percent of a 52-story skyscraper on which he and his partner, the Vornado Realty Trust, took out a $1.2 billion mortgage, also in 2021. Bloomberg has been playing close enough attention to the financial, legal and political travails of Defendant Trump that they can report the San Francisco tower mortgage has been put on a "watchlist for default," which is significant because a recent office building sale in the same downtown area went for what the Wall Street Journal called a "fire sale price."

The value of that poor building had dropped to $60 million from $300 million in just four years, establishing a floor value for the neighborhood of about $200 per square foot. Defendant Trump's mortgage puts a value on his building of $900 per square foot, meaning if the building was sold today at a price area buildings are currently worth, the sale price would come nowhere near covering its $1.2 billion debt.

So. Indictments, subpoenas, target letters, fights with Republican governors of Republican states he doesn't need to be fighting with, refusals by former press secretaries and presumed friends to endorse him, financial woes, and yet another apparent proffer agreement by a close aide involved in his fake elector scheme...what else might be in store for Defendant Trump?

Posted by at July 20, 2023 8:07 AM