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Trump’s Shambolic Empire Faces Long Odds for One More Comeback
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January 19, 2021
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4:40Now PlayingOn the day Donald Trump was getting impeached in Washington, the lobby of his New York tower at 40 Wall St. was almost silent. Few footsteps smudged the shiny marble.
But up the dark and golden elevators, trouble was stirring in one of the billionaire’s most valuable properties. Inside one law office, two partners had clashed over whether to keep paying rent to a landlord who encouraged the Capitol’s deadly riot. On the 24th floor, a nonprofit that fights tuberculosis was exploring options for leaving. On the seventh, the Girl Scouts were figuring out how to break their lease.
And in the basement, vintage bank-vault doors that weigh more than 10 tons stood wide open. There, in a club room that Trump renovated, the news was playing on a jumbo television to an audience of empty armchairs just as Congress voted against him.
So it goes in Trump’s empire as his presidency slouches toward the end.
The Trump Organization, run by sons Eric and Don Jr., was struggling with the devastating consequences of the Covid-19 pandemic even before their father incited a raid on Congress. Efforts to sell his Washington hotel were shelved, his office buildings were losing value amid a glut of space in Manhattan, and his golf courses were facing the reality that younger generations aren’t so interested.
Trump entered office worth $3 billion. Despite soaring stock prices and his own tax cuts, he will leave about $500 million poorer, according to the Bloomberg Billionaires Index.
His buildings are saddled with more than $1 billion in debt, most of it coming due in the next three years and more than a third of it personally guaranteed. Refinancing would mean finding lenders and corporations willing to work with history’s only twice-impeached ex-president.
“Nothing like this has ever happened to him,” said Barbara Res, who was an executive in Trump’s company for years. “Will he come back? My gut tells me yes, because he always comes back. But he won’t come back the same.”
Trump already has survived corporate bankruptcies, rough times in Atlantic City, a school that ended with probes and dead-end brand journeys for Trump Steaks, Trump Vodka and even an airline. The man who made “America First” his catchphrase could now hunt overseas for partnerships and licensing deals.
Even so, Deutsche Bank AG, his longtime financier, won’t touch him anymore. Signature Bank, where his daughter Ivanka once served on the board, is closing his accounts. Cushman & Wakefield Plc, a broker for 40 Wall St., is cutting ties, and PGA of America is steering clear.
The biggest hits to Trump’s fortune are in New York, the heart of his empire, where the Queens-born developer turned into a reality star and then descended his own escalator to enter politics.
Outside Trump Tower, East 56th Street remains blocked, a parking lot for about a dozen black SUVs with government plates. The building is closed to visitors due to the pandemic, shutting Trump’s grill, bar, cafe and ice cream parlor.
Not that there are tourists around for winter sundaes. Fifth Avenue is almost deserted. Vacant storefronts are multiplying, and some remaining boutiques are now appointment-only. Rents have slid 32% from a 2018 peak, according to the Real Estate Board of New York.
Trump’s cavernous East 57th Street space is currently subleased to the iconic Tiffany’s jewelry store, but a new tenant will soon be needed.
High above, 1,596 square feet of Trumpian extravagance keeps getting cheaper.
Apartment 55B, with blue lapis floors and medallion ceilings, is listed for $2.995 million, about $2.5 million less than four years ago. It’s hardly an outlier. Prices at the skyscraper have slipped by a third since Trump took office, StreetEasy data show.
And even before the Capitol attack, his company was offering concessions to some tenants at 40 Wall St., lender records show. The $137 million debt at the property was added to lender watch lists in November after net income dipped below what underwriters expected when the debt was issued in 2015.
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