While there’s plenty going on in the world of President Donald Trump these days, his real estate organization still found the time to pay off the debt at one of its most prominent properties.
The Trump Organization paid off the remainder of the debt backing 40 Wall Street in the Financial District, Reuters reported. There was estimated to be about $114 million outstanding on a $160 million loan Ladder Capital provided at the 72-story office tower in 2015.
The Trump Organization was weeks away from its deadline, as the loan was due for repayment at the beginning of next month. Instead, the company will go into the second half of the year debt-free at the property.
The real estate firm benefited from a low interest rate, 3.67 percent, according to a recent financial disclosure.
The Trump Organization never missed a payment on the loan, according to Morningstar Credit’s Dave Putro, but that doesn’t mean things have been easy at the property. Occupancy at the building was down to 74.4 percent as of September, according to Fitch Ratings. The building’s income also declined from a decade ago.
Trump paid $1.3 million for the building in the 1990s. Its last known valuation was $540 million when the Ladder Capital loan was underwritten.
The property’s more recent claim to fame is being the centerpiece of the civil fraud case against the president, waged by New York Attorney General Letitia James. Her office alleged the Trump Organization inflated the worth of 40 Wall Street by $200 million to secure more favorable loan terms.
Despite winning a $454 million judgment, James’ efforts to collect have been thwarted by Trump’s return to the White House. James has previously threatened to seize 40 Wall Street as a means to collect the judgment.
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