Donald Trump was facing a cash crunch in March, prompting him to call on his supporters to help save Trump Tower from seizure. However, after a bond reduction in his New York fraud case, assistance from a friendly billionaire, and the successful stock market debut of his social media company, Trump was able to pay off a $12 million loan on an Upper East Side property. Despite not owning most of the real estate in Trump Plaza, he controls the retail space, parking garage, and two brownstones through a leasehold agreement until 2083.
In June 2014, Trump took out a $15 million mortgage on the property from Ladder Capital, with the loan set to mature on July 6, 2024. With about $12 million outstanding on the loan as of March, Trump’s financial situation seemed dire, especially after facing a fraud judgment of over $450 million. However, after an appeals court lowered his bond amount to $175 million, billionaire Don Hankey helped cover the bond, and Truth Social became popular with investors, the loan’s balance suddenly dropped to zero, indicating that Trump had paid it off.
Despite paying off the loan, Trump Plaza still faces challenges, including tenant turnover and inconsistent financials. The property saw some turnover when American Apparel went bankrupt, with the Trump Organization filling the space with a nut shop. Financially, Trump Plaza was making around $1.4 million in profit annually when Trump took out the loan, with profits peaking at over $2.2 million in 2016 before falling to around $1.7 million during most of Trump’s presidency. Additionally, Trump’s campaign funneled almost $240,000 to Trump Plaza for “rent” between 2015 and 2019, although little campaign presence was found at the property in 2018.
Looking ahead, Trump faces uncertainty as his flat rent payment of $1.35 million is set to change to 8% of the whole parcel’s appraised value, potentially increasing his expenses and impacting his profits. Despite these challenges, Trump no longer has to worry about the old loan on Trump Plaza. The property’s financial performance has been mixed, with profits only exceeding $1.5 million once since the start of the pandemic in 2020.
The successful payment of the $12 million loan indicates some financial stability for Trump, at least in the short term. His ability to secure the funds to pay off the loan through a mix of personal resources and potential additional loans demonstrates his continued ability to navigate complex financial situations. With the recent developments in his legal cases and business ventures, Trump appears to have bought himself some time to address the challenges facing Trump Plaza and secure the property’s financial future. Despite the uncertainties ahead, Trump’s recent actions may have provided him with some much-needed breathing room in his financial dealings.
