Vornado pays Trump Organization millions each year

Company has 30% stakes in two of REIT's properties

New York /
Feb.February 16, 2017 09:33 AM

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


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...