Trump’s Shambolic Empire faces long chance for another return

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

On the day Donald Trump was accused in Washington, the foyer of his New York tower at 40 Wall Street was almost silent. Few footsteps smeared the shiny marble.

But in the dark and golden elevators, the trouble was awakening one of the billionaire’s most valuable properties. Within one law firm, two partners clashed over whether to continue paying rent to a landlord who encouraged the deadly uprising of the Capitol. On the 24th floor, a non-profit organization that fights tuberculosis investigated the possibility of leaving. On the seventh, the Girl Scouts were trying to figure out how to break their lease.

And in the basement, vintage bank vault doors weighing more than 10 tons are wide open. There, in a club room that Trump renovated, the news was playing on a jumbo television for an audience of empty armchairs, just as Congress was voting against him.

So it goes into Trump’s empire as his presidency weakens towards the end.

The Trump organization, led by sons Eric and Don Jr., struggled with the devastating effects of the Covid-19 pandemic even before their father incited a raid on Congress. Efforts to sell his hotel in Washington have been thwarted, his office buildings are losing value amid a large amount of space in Manhattan, and his golf courses are facing the reality that younger generations are not so interested.

Trump has entered his office worth $ 3 billion. Despite rising share prices and its own tax cuts, it will leave the $ 500 million poorer, according to the Bloomberg billionaire index.

Its buildings are saddled with more than $ 1 billion in debt, most of which are due over the next three years and more than a third of which are personally guaranteed. Refinancing would mean borrowers and corporations willing to work with the only former president of history.

“Something like this has never happened to him,” said Barbara Res, who has been a manager in Trump’s company for years. “Will he come back? My gut says yes to me because he always comes back. But he will not return the same. ”

Abandoned Avenue

Trump has already survived corporate bankruptcies, tough times in Atlantic City, a school that ended with probes and dead-end brands for Trump Steaks, Trump Vodka and even an airline. The man who made “America First” his watchword could now hunt overseas for partnerships and licensing deals.

Even so, Deutsche Bank AG, its longtime financier, will no longer affect him. Signature Bank, where his daughter Ivanka once served on the board, closes his accounts. Cushman & Wakefield Plc, a broker for Wall Street 40, cuts tires, and PGA of America steers clear.

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

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

Not that there are tourists for winter Sundays. Fifth Avenue is almost deserted. Vacant shop windows are increasing and some remaining boutiques are now appointment only. Rents have fallen by 32% from a 2018 high, according to the Real Estate Board of New York.

Trump’s cave-like East 57th Street space is currently being leased to the iconic Tiffany’s jewelry store, but a new tenant is needed soon.

High up, 1,596 square feet of Trump extravagance is getting cheaper.

Apartment 55B, with blue lapis floors and medal ceilings, is listed at $ 2.995 million, about $ 2.5 million less than four years ago. It’s hardly an outlier. StreetEasy data shows that prices at the skyscraper have fallen by a third since Trump took office.

And even before the Capitol attack, his company offered concessions to some tenants in Wall Street 40. The $ 137 million debt at the property was added to the list of lenders in November after net income fell below what underwriters expected when the debt was issued in 2015.

City’s rejection

“I do not believe his name is going to yield a premium at the moment,” said Warren A. Estis, founding partner of real estate law firm Rosenberg & Estis and owner of a 86-story penthouse at Trump World Tower near the United Nations. Still, Estis said he heard no rumors from his apartment board about depriving Trump of his name from the building.

“What’s in a name? A rose with any other name is still a rose,” says Estis. “It seems that Donald is very resilient and I expect him to bounce off of this.”

The city of New York itself wants nothing to do with Trump. Officials plan to terminate 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.

“The city of New York has no legal right to terminate our contracts and if they choose to continue, they will owe the Trump Organization more than $ 30 million,” the company said in a statement. “This is nothing but political discrimination, an attempt to infringe the first amendment, and we plan to fight vigorously.”

While police officers kept the public outside the Trump Tower, including the Trump Store, there was also bad news for fans visiting online Trump pint glasses for $ 55 or a Trump Christmas set for $ 80. Shopify refuses to host the site, which has warned customers that their connection is not private and that “attackers may be trying to steal your information.”

Not long ago, the big question that hovered over Trump’s return to the business world was whether the former reality television host would make the Conservative media an incident, where product supports and licensing deals are legion. The discussion in the financial circles is about whether he can defend his existing empire. He will have to convince lenders that he is worth the risks and that he is proving to developers that his name has enough cash.

“The presidency and Donald’s racist, sexist and xenophobic language have damaged the brand to such an extent that it is worthless,” said Michael Cohen, his lawyer who has been criticized.

Trump stream

Eric Trump made such allegations in a an interview with the Associated Press this week with the blame for ‘canceling culture’ for recent hits for the family empire which he says poses no threat to the company’s finances. His father, he noticed, still has armies of followers: “You have a man who will be followed by the hundred million Americans to the ends of the earth.”

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

The executive branch nevertheless said that even controversial porn sellers can find homes online. He estimated that Trump could get 5 to 15 million supporters to pay $ 10 a month for the content, and predicted that goldsmiths and good friends would not advertise.

The Trump organization can also look overseas.