The Real Deal New York

The Deutsche Bank decline

Will the embattled global bank retreat from the NYC real estate market?
By Erin Hudson | October 01, 2018 10:00AM

The global bank and real estate backer is staring down a host of serious challenges.

Deutsche Bank has had a rough run. Most recently, its been under the microscope for its relationship with President Donald Trump. But in 2018’s first half, its credit rating was downgraded, the Federal Reserve labeled its U.S. businesses “troubled,” its CEO was ousted and its stock price hit a record low. Here’s a look at the state of Deutsche Bank and its role in New York’s commercial real estate market.

2008

The year Deutsche sued Trump over his failure to pay back $40 million on a $640 million loan for a planned mega tower and hotel in Chicago. Trump then countersued the bank for $3 billion, claiming the market crash should get him off the hook. Deutsche said the suit was “classic Trump.”

$9.38B

The amount that Deutsche Bank originated in loans — $6.71 billion in non-construction mortgages and $2.67 billion in construction loans — in New York between October 2016 and September 2017. Those loans were spread across 60 deals.

$7.2B

The year Deutsche sued Trump over his failure to pay back $40 million on a $640 million loan for a planned mega tower and hotel in Chicago. Trump then countersued the bank for $3 billion, claiming the market crash should get him off the hook. Deutsche said the suit was “classic Trump.”

$5M to $25M

The credit line that Trump son-in-law Jared Kushner and his mother, Seryl, reportedly have with Deutsche. In December, federal prosecutors subpoenaed the bank for its records on their firm, Kushner Companies, a regular Deutsche borrower.

$1B

One of the largest real estate loans — if not the largest — that was single-handedly originated by Deutsche in the past five years. The loan was issued to SL Green Realty in 2015 for the REIT’s acquisition of 11 Madison Avenue. The firm bought the 29-story tower from CIM Group for $2.6 billion.

18

The number of months it’s expected to take Chinese conglomerate HNA Group to unload its 7.6 percent stake — which is valued at an estimated $1.8 billion — in Deutsche. The decision by HNA, which is headed by Chen Feng, to sell comes as the Chinese government has pressured the firm to scale back its investments outside its home country.

5

The number of the top 10 loans originated in New York City financed — in part or full — by Deutsche Bank in the past two years. That was far more than any other lender. The bank’s biggest loan in the past year was $715 million for Silverstein Properties’ $1 billion acquisition of ABC’s headquarters at 77 West 66th Street.

$11.17

Deutsche Bank’s stock price as of the middle of last month. Between the start of 2018 and June, its stock plummeted 39 percent. The drop got the bank booted from the European top-50 list of blue-chip companies. The bank has recorded annual losses since 2015.