Trump’s Most Valuable NYC Skyscraper On Lender Watchlist

The Trump Building, on 40 Wall St., is one of the Trump Organization's most valuable skyscrapers.
The Trump Building, On 40 Wall St., Is One Of The Trump Organization's Most Valuable Skyscrapers.

The Trump Organization’s most valuable office tower, 40 Wall St., could be in trouble, according to its lenders.

Rising vacancies in the 72-story building set off alarm bells for lenders, who said low leasing volume is accompanied by rising expenses in the building and a remaining mortgage balance of $126.5M, Bloomberg first reported.

Although The Trump Organization has reportedly leased more than 100K SF since 2022 in the property, in addition to 40K SF of pending lease agreements, the building’s vacancy rate hit 18% in Q3 2022, a monthly filing on the loan said, and expenses have risen by 11% since 2015.

Wells Fargo & Co., the servicer on the loan, said in the filing that it has inquired about plans to improve the property’s performance and for the latest leasing developments.

The debt service ratio — which measures revenue to the cost of servicing a property’s mortgage — fell to 0.92 for 40 Wall St., down from 2.13 when the office tower’s $160M loan was originated, according to the filing seen by Bloomberg. A ratio smaller than 1 means the building has negative cash flow, or is bringing in less income than it owes each month.

The Trump Organization acquired the property in 1995. Tenants include coworking provider Jay Suites and engineering company Thornton Tomasetti.

The Trump Organization’s FiDi tower is among other Lower Manhattan office towers that have struggled to retain tenants and saw rising vacancies even prior to the pandemic. However, several Trump Organization properties have overcome financial difficulties, Bloomberg reported: Trump Tower, located at 725 Fifth Ave., refinanced a $100M loan last year.

The skyscraper is also one of several properties that has landed The Trump Organization in trouble with New York State Attorney General Letitia James.

One of the AG’s multiple investigations into The Trump Organization’s business dealings in New York found that 40 Wall St. was appraised at $200M in August 2010 and $220M in 2012. But a 2011 financial statement from Trump placed the value at $524M, then $530M two years later. A 2015 appraisal placed the value at $540M.

Former President Donald Trump declined to answer the AG’s questions in August, instead invoking the Fifth Amendment.

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