Vornado pays Trump Organization millions each year

Company has 30% stakes in two of REIT's properties
February 16, 2017 09:33AM

1290 Sixth Avenue, Donald Trump and Steve Roth

As it vies for federal work and funds, Vornado Realty Trust pays the Trump Organization tens of millions of dollars each year for its stakes in two of the REIT’s office buildings.

The Trump Organization TRData LogoTINY owns 30 percent stakes in 1290 Sixth Avenue in Manhattan and 555 California Street in San Francisco. Interest in the former is worth $428.9 million and generates $14.7 million in annual cash flow for the Trump Organization, the Wall Street Journal reported. The stake in the California property is worth $322.6 million and generates $8 million annually, the Journal claims.

Vornado decides how much Trump’s company receives each year, while at the same time competing for government contracts. The company is currently bidding on building a new Federal Bureau of Investigation headquarters. Vornado is also waiting on federal funding for the $1.6 billion overhaul of the James A. Farley Building.

Last month, Donald Trump tapped Vornado’s founder, Steven Roth, and Richard LeFrak to head up a council that will monitor national infrastructure spending.

Vornado also has done business with Jared Kushner, having bought a 49.5 percent stake in 666 Fifth Avenue in 2011 and purchased retail space in the building for $710 million. [WSJ] — Kathryn Brenzel