From left: Eric Trump and Donald Trump along with 725 Fifth Avenue (Getty Images, Trump Organization, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Donald Trump secured a $100 million mortgage refinancing for Trump Tower in February, after Wells Fargo put the former president’s Fifth Avenue building on notice.
The loan from San Diego-based Axos Bank hit public records on Tuesday, but the transaction took place in mid-February. Eric Trump signed the documents on behalf of the Trump Organization through the entity Trump Tower Commercial LLC.
The refinancing of the 58-story, 257,000-square-foot 725 Fifth Avenue building comes months after its previous debt was moved to a watch list as the building struggled with low occupancy. Bloomberg reported the debt was moved to a watch list in September, secured by the office and retail space of the building and sponsored by the ex-president himself.
At the time, the loan’s master servicer, Wells Fargo, reported occupancy dipped to 78.9 percent at the end of 2020. Loan documents reported by Bloomberg show revenue from the property was $33.7 million for that year.
The previous $100 million mortgage, which was expected to come due this coming September, was provided by Ladder Capital. Forbes in November valued the building at $285 million, while the city’s 2022 market value for the property is $246.2 million, according to PincusCo.
The Ladder loan was one of the transactions being eyed by prosecutors in a criminal probe of Trump’s financial dealings, according to the Wall Street Journal. While a civil probe remains ongoing, the criminal probe appears to be in danger, leading two prosecutors to resign from the case in recent weeks, according to the New York Times. A civil inquiry led by New York state attorney general Letitia James remains ongoing.
The Trump Organization did not immediately respond to a request for comment on the Trump Tower refinancing. Axos declined to comment.
Trump Tower has struggled as a slew of retailers have left in recent years, and some tenants have wound up in court over unpaid rent. For a time, the most reliable tenant in the building was the Make America Great Again PAC, which paid more than $37,500 per month for 15th floor office space beginning last March.
Axos has previously been connected to Trump and his family. Forbes reported CEO Gregory Garrabrants has contributed $9,600 in support of Trump since 2012, per Federal Election Commission records.
Axos also provided construction financing for a Wynwood, Florida, development coming from Kushner Companies, which has family ties with Trump. Axos teamed with Fortress to provide roughly $80 million in financing last year.