News

Prosecutors Checking Into Trump Organization's $130M Loan For Chicago Tower

Trump Tower In Chicago

Manhattan prosecutors subpoenaed documents from Fortress Investment Group, a New York City-based investment company that loaned millions to The Trump Organization for its Trump International Hotel & Tower Chicago, according to a Monday report from CNN, citing people familiar with the investigation.

Fortress provided a $130M loan to The Trump Organization for the 98-story tower at 401 North Wabash Ave. in River North. Builders broke ground on the project in 2005, and it opened four years later.

Prosecutors issued a grand jury subpoena to the New York lender in late 2020, the sources said, a signal that the Manhattan District Attorney’s Office continues to expand its inquiry into many aspects of former President Donald Trump’s business dealings.

Prosecutors want to know whether The Trump Organization gave accurate information to lenders and insurers about the true value of several properties, according to CNN. In addition, in the three years after Trump Tower opened, Fortress forgave more than $100M of the loan, and the district attorney is looking into whether Trump’s firm reported that forgiveness as income, as required by Internal Revenue Service rules.

“Fortress has not been accused of any wrongdoing,” CNN added. Both Fortress and Manhattan District Attorney Cy Vance declined to speak with the network. A Trump organization attorney also declined to comment.

Vance received millions of pages of tax returns and other financial documentation from Mazars, Trump’s accounting firm, in late February after the U.S. Supreme Court ruled the documents could not be withheld from investigators.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

Brandon Johnson Seeks Second Term Amid Strained CRE Relationship

Luxury Marriott Hotel Will Take Space In Charlotte Office Conversion

Prologis Acquires 69 Acres For 1M SF Chicago-Area Industrial Development

First LaSalle Street Reimagined Conversion Opens In Chicago's Loop

Inland Scoops Up 2 Senior Living Facilities: The Chicago Deal Sheet

Thor Equities Reacquires Retail Portion Of Palmer House After Losing It To Foreclosure In 2023

Future White Sox Owner Advances Push To Build New Riverside Stadium

Republican Midterm Convention Could Fill More Than 5,000 Hotel Rooms In Dallas

Suburban Chicago Shopping Center Sells For $122M In Major Retail Deal

Becknell Taps JLL IPT Veteran To Boost REIT's Selling Group

Union Contracts Expire At 46 Chicago Hotels, With Potential Strike Looming

RJW Logistics Breaks Ground On 1.2M SF Facility: The Chicago Deal Sheet