Trump’s Shambolic Empire faces long chances of returning more

Photographer: Ted Thai / The LIFE Picture Collection / Getty Images

The day Donald Trump was being charged in Washington, the lobby of his New York tower at 40 St. A few steps stained the shiny marble.

But even the dark, golden elevators had problems with one of the billionaire’s most valuable properties. Inside a law firm, two partners had clashed over whether to continue paying rent to a landlord who encouraged the Capitol’s deadly revolt. On the 24th floor, a non-profit organization fighting tuberculosis was exploring options to leave. Seventh, the Girl Scouts were figuring out how to break their lease.

And in the basement, the old bank vault doors weighing more than 10 tons were kept open. There, in a club room that Trump renovated, the news was played on a jumbo television in an empty-seat audience just as Congress voted against it.

So it is with Trump’s empire as his presidency draws to a close.

The Trump Organization, led by sons Eric and Don Jr., struggled with the devastating consequences of the Covid-19 pandemic even before his father incited a raid on Congress. Efforts to sell their hotel in Washington were set aside, their office buildings were losing value amidst excess space in Manhattan and their golf courses were facing the reality that younger generations they are not so interested.

Trump took office worth $ 3 billion. Despite rising stock prices and its own tax cuts, it will leave about $ 500 million poorer, according to the Bloomberg Billionaires Index.

Their buildings have a debt of more than $ 1 billion, most of which will be collected over the next three years and more than a third of their personal guarantee. Refinancing would mean finding lenders and corporations willing to work with the only former president in history who was accused twice in history.

“Nothing like this has ever happened to him,” said Barbara Res, who was an executive for the Trump company for years. “Go back to? My gut tells me yes, because it always comes back. But it will not return the same. “

Desert Avenue

Trump has already survived corporate bankruptcies, difficult times in Atlantic City, a school that ended with polls and dead ends for Trump Steaks, Trump Vodka and even an airline. The man who turned “America First” into his slogan could now hunt abroad for partnerships and licensing agreements.

Even so, Deutsche Bank AG, its long-time financier, will no longer touch it. Signature Bank, where his daughter Ivanka served on the board, closes his accounts. Cushman & Wakefield Plc, a 40 Wall St. runner, is cutting ties and PGA of America is keeping it clear.

The biggest hits of Trump’s fortune are in New York, the heart of his empire, where the Queens-born developer became a reality star and then lowered his own escalator to enter politics.

Outside Trump Tower, East 56th Street remains blocked, a parking lot for a dozen black SUVs with government license plates. The building is closed to visitors due to the pandemic, which closes Trump’s grill, bar, cafeteria and ice cream parlor.

Not that there are tourists around for the winter drinks. Fifth Avenue is almost deserted. Vacancy shop windows are multiplying and some remaining stores are now by appointment only. Rents have been down 32% from the 2018 high, according to the New York Real Estate Board.

Currently, the cavernous space on Trump’s East 57th Street is leased to the iconic Tiffany jewelry store, but a new tenant will soon be needed.

Far above, the 1,596 square feet of Trumpet extravaganza are getting cheaper.

Apartment 55B, with blue pencil floors and medallion ceilings, it is trading at $ 2.995 billion, about $ 2.5 million less than four years ago. It is hardly an atypical value. Skyscraper prices have fallen a third since Trump took office, according to StreetEasy data.

And even before the Capitol attack, his company offered concessions to some Wall Street No. 40 tenants, according to lender records. The property’s $ 137 million debt was added to lenders ’watch lists in November after net revenues fell below what insurers expected when the debt was issued in 2015.

Rejection of the city

“I don’t think his name provides a premium right now,” said Warren A. United Nations. Still, Esta said he heard no rumors from his condominium council about the removal of Trump’s name from the building.

“What’s in a name? A rose with any other name is still a rose, ”says Esta. “It looks like Donald is very resilient and I hope he recovers from that.”

New York City doesn’t want to have anything to do with Trump. Officials plan to end more than $ 17 million in contracts with the president’s family business, including a carousel and two ice skating rinks in Central Park and a Bronx golf course.

“New York City has no legal right to terminate our contracts, and if they choose to proceed, they will owe the Trump Organization more than $ 30 million,” the company said in a statement. “This is nothing more than political discrimination, an attempt to violate the First Amendment, and we plan to fight vigorously.”

While police officers kept the public out of Trump Tower, including their Trump store, there was also bad news for fans who went online to grab Trump pint glasses for $ 55 or a Trump candle for $ 80 . Shopify refuses to service the website, which has left customers with a warning that their connection is not private and that “attackers may try to steal your information.”

Not long ago, the big question surrounding Trump’s return to the business world was whether the former TV presenter would make a foray into conservative media, where product endorsements and licensing agreements are legions. Now the conversation in financial circles is focused on whether he can defend his existing empire. You will need to convince lenders that it is worthwhile, and show developers that their name retains enough cache.

“Donald’s presidency and racist, sexist, and xenophobic language have soiled the brand to such an extent that it has no value,” said Michael Cohen, his lawyer turned critic.

Trump streaming

Eric Trump refuted these claims in a interview with the Associated Press this week, blaming “canceling the culture” for recent successes in the family empire that he said posed no threat to the company’s finances. His father, he pointed out, still has fan armies: “You have a man who would be followed to the ends of the Earth by one hundred million Americans.”

A conservative media executive who is still optimistic about Trump’s prospects of creating a subscription-based video service admitted that recent events may limit potential platforms, advertisers and partners.

Still, the executive said even controversial porn providers can find homes online. He estimated that Trump could get between 5 and 15 million followers to pay $ 10 a month for content, predicting that gold sellers and close friends would not care about advertising.

The Trump Organization could also look abroad.