The Donald’s Trump Organization has a refinance in the works for the 244,482 square feet of retail and offices at the Trump Tower headquarters at 725 Fifth Avenue, the Wall Street Journal reported. The deal replaces a $27 million mortgage that’s soon to expire with a $100 million mortgage with some perks: a 4.2 percent interest rate and about $72.4 million in extra cash.
The new interest rate marks a decline from the previous 7.9 percent one. The property, excluding the more than 200 condominium units, is valued at $480 million. “It’s such a small loan-to-value [ratio] that it was a good opportunity to do this” Allen Weisselberg, Trump Organization’s chief financial officer, told the Journal of securing the lower rate.
As of yet, there are no plans for the $72.4 million in cash. The building’s commercial space boasts nearly 99 percent occupancy, the Journal said, with such tenants as Gucci America and Industrial and Commercial Bank of China. [WSJ]