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Trump pariah? A new $ 100 million bank loan suggests no

NEW YORK – The bank’s decision to lend $ 100 million to Donald Trump’s company is the latest proof that the former president can survive a fraud investigation and the reaction of business to his efforts to stay in office after losing the 2020 election.

San Diego-based Axos Bank finalized the loan with the Trump Organization on February 17, according to documents filed in the city on Tuesday.

That’s just three days after public revelations that the Republican’s longtime accountants have renounced his financial statements for a decade amid accusations by the New York Attorney General that he exaggerated his wealth.

The Axos loan is being used to repay an old loan secured by retail space in the Trump Tower, which was due to fall in September.

A year ago, it seemed possible that Trump would become a pariah after his supporters stormed the US Capitol in an attempt to stop the vote in favor of President Joe Biden’s election victory. Banks, insurers and other business partners cut ties after the riot.

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Last year, the Trump Organization was charged in New York with aiding and abetting tax evasion. For two years, the company has been the subject of civil and criminal investigations by New York Attorney General Leticia James and the Manhattan District Attorney.

But in the fall, Trump struck a deal to sell his Washington hotel for much more than expected. And the partnership he is involved in, which owns two office towers, recently took out new loans for much more than was needed to pay off the upcoming old ones.

“He’s going back,” said Barbara Res, a former non-fan of the Trump Organization and even urged people not to vote for him.

“If a person brings me a property with good cash flow, a good location and good tenants, why should I care what his policy is?” he has good buildings and manages them well. ”

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The Trump Organization declined to disclose the interest rate on the new loan and other conditions. Axos, citing customer privacy policies, did not comment.

Asked to comment on the story, one of Trump’s sons attacked reporters for portraying the family company as struggling.

“We should never have been underestimated,” Eric Trump said in an e-mail statement, adding: “We have very low debt, we have a huge amount of cash and we have extremely profitable properties.”

Assessing the overall financial health of the Trump Organization is a challenge, given that it is a private company that publishes few figures publicly.

During his presidency, Trump’s name was removed from hotels and apartment towers in several cities. His Scottish golf course has lost millions, and apartments in its apartment buildings have been sold at great discounts.

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Excluding coronavirus added to the problems. Revenues at the company’s largest golf property, Doral outside Miami, fell $ 33 million in the two years to 2021, down 44 percent, according to financial records obtained from the government’s ethics agency.

Then came the Capitol riots and the rush to leave, as Trump’s longtime trade broker, his two biggest creditors, America’s PGA and others severed ties.

The company that helps him shop around the hotel in Washington also cut ties after removing it from the market due to lack of demand. New York has announced it is revoking all city contracts with Trump, including the rights to run a public golf course in the Bronx. Eric Trump called the city’s move a product of a “culture of abolition” and vowed to fight it.

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The city’s decision to expel Trump from the course was bound in court, and now, a few months after Trump had to leave, he still runs it, his name written on a hill in giant cobblestones seen for miles. Trump’s organization says it will go, but first the city must pay it $ 30 million.

Meanwhile, Trump’s largest office buildings, although suffering, have not seen a large-scale eviction of tenants.

One of its biggest commercial tenants, Gucci, decided last year to extend its Trump Tower lease by another 16 years, according to financial documents from research lending firm Trepp.

This building generated $ 19 million in revenue in the first nine months of last year, less than in previous years but enough to pay for expenses and interest.

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Axos has previously provided loans backed by at least two properties owned by Kushner Cos., The family-owned real estate company once run by Trump’s son-in-law and White House adviser Jared Kushner. The bank is also benefiting from a change in the Trump administration’s policy of allowing high-interest loans.

The Trump Tower loan follows other deals to refinance mortgages on a building in San Francisco and a tower on Sixth Avenue in New York City, both 30% owned by the Trump Organization and 70% owned by publicly traded real estate giant Vornado.

Under the Vornado deal, the partnership took more money than it owed on the old loans, and Trump’s share of that extra money could have been up to $ 200 million, based on the size of his share.

Trump’s company still has many other refinancing loans, including a $ 125 million loan from Doral that is due to fall next year.

More than a dozen hotel brokers and experts who have spoken to the Associated Press in recent months estimate that Trump is unlikely to make money from selling his long-term rental building to the federal-owned Old Post Office, which he began turning into a hotel before nearly a decade.

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But then a Miami-based company joined former Yankees star Alex Rodriguez to bid $ 375 million for the losing property. The deal has yet to be approved by the federal agency that oversees the building.

Mar-a-Lago, Trump’s property in Palm Beach, Florida, is also a busy business, with initiation fees rising as Republican groups and politicians hold regular events there, hoping to be visited by the president and possibly a welcome person. .

Trump’s social media campaign, which aimed to take over Twitter, failed to launch, full of problems and freezes, as people who signed up were blocked and left furious.

However, investors have kept the company’s shares tied to the Truth Social app with the belief that it will prevail against skeptics. At current prices, Trump’s personal stake could cost billions.

Copyright 2022 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or distributed without permission.

Trump pariah? A new $ 100 million bank loan suggests no

Source link Trump pariah? A new $ 100 million bank loan suggests no

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