The Trump Organization joins the ranks of landlords seeking relief from their loan obligations this spring.
The company, run by President Donald Trump’s sons, asked lenders for relief due to Covid-19 on a loan against its retail space at the base of Trump Plaza on the Upper East Side, Bloomberg reported. The terms sought or concessions agreed to were not made public.
Retail tenants at the property include a vitamin shop, Mephisto shoe outlet and the Upper East Cafe.
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Trump Organization properties losing $1M a day to pandemic
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"What, me worry?" Ladder Capital says it can easily meet margin calls
The retail property was last appraised in 2014 for $41 million, when the Trump Organization secured a $15 million loan from Ladder Capital, according to Bloomberg. The deal was securitized into a package of loans that have conservative loan-to-value ratios under 50 percent.
In April, the Trump Organization was reportedly losing $1 million a day from its hotel properties. Ladder Capital, which frequently lends to the real estate firm, began selling assets, though the commercial mortgage REIT said in a May earnings call that it wasn’t having any problems meeting higher-than-expected margin calls.
The Trump Organization, barred from seeking public rescue funds provided through the CARES Act, has reportedly also engaged Deutsche Bank to discuss relief measures. [Bloomberg] — Erin Hudson