Illustration by Forbes. Photos: Getty Images
Left with few options for expanding, the president’s sons have been quietly chipping away at Trump’s mountain of debt.
Debt. Donald Trump has a lot of it—more than $1 billion in all—and most of it will come due in the next four years. Luckily for the president, his children have been lessening the burden by chipping away at the Trump Organization’s mountain of mortgages over the past few years.
Left with few options for expanding their father’s business, Trump’s sons Eric and Don Jr., who took over day-to-day operations when their father entered office, have mostly been tending to their rent rolls and selling off real estate—and using the resulting cash to quietly pay down an estimated $67 million of the Trump Organization’s debts since the January 2017 inauguration, across ten of the president’s properties.
Much of the debt reduction comes from quietly making routine monthly mortgage payments on their commercial properties. At 40 Wall Street, the Trump Organization’s 72-story office and retail tower near the New York Stock Exchange, the Trumps owed an estimated $154 million on inauguration day. They’ve since reduced that number by $16 million — the most they’ve paid off at any property since Trump took office. At Trump Park Avenue, a former hotel that Trump turned into luxury condos and retail space in the early 2000s, the Trumps have reduced their mortgage by an estimated $2.2 million. They’ve taken an estimated $1 million off the debt taken out against their retail space at nearby Trump Plaza, and have shaved some $500,000 off the debt at the Trump International Hotel & Tower bordering Central Park.
At some properties, they’ve eliminated their debt entirely. Around the corner from Trump Tower, at 6 East 57th Street, the Trumps paid off the last chunk of their mortgage in 2017—just before their sole tenant, Nike, vacated the building. Famed jeweler Tiffany & Co. is now subleasing the space while its iconic flagship store is being renovated next door. In Las Vegas Trump and his partner, billionaire Phil Ruffin, took out a $30 million loan against their 64-story tower in late 2016—perhaps freeing up some cash for the candidate’s $12 million in last-minute 2016 campaign donations. After selling dozens of condos in the building, the Trumps and Ruffin repaid that loan in 2018.
An estimated $14 million in debt was wiped off Donald Trump's balance sheet when the massive Spring Creek Towers housing complex, in which the president had a 4% stake, was sold in 2018.
Drew Angerer/Getty ImagesFor other big debt repayments, the Trumps have their partners to thank. In 2018, the managers of Spring Creek Towers agreed to sell the massive federally subsidized housing complex for $905 million. The deal gave Trump, whose 4% stake in the project was one of the last remaining pieces of his father’s Brooklyn and Queen real estate empire, an estimated $33 million in cash—and took an estimated $14 million in liabilities off his balance sheet. And Trump’s 30% stake in a San Francisco skyscraper, 555 California Street, is burdened by an estimated $11 million less debt than it was in January 2017, thanks to publicly traded Vornado Realty Trust, which controls the property and has been making monthly payments on its mortgage principal.
Of course the Trump Organization has added debt in a few places while Donald Trump has been in Washington. In Palm Beach, the Trumps paid off two mortgages tied to mansions the president owns next to his Mar-a-Lago club in 2017, but took out a new, $11 million loan when they purchased a third mansion across the street in 2018.
The Trumps have otherwise largely steered clear of tapping new debt while Trump has been in office, though if he wins reelection the family will likely face a series of major ethics challenges as the president’s company is forced to engage in a series of high-stakes, big-money transactions to refinance an estimated $900 million worth of loans that are coming due for some of Trump’s most notable holdings, including Trump Tower, Trump National Doral and the Trump International Hotel in Washington, blocks from the White House.
Here are the properties where the Trumps have been paying down debt during Donald Trump’s presidency:
40 Wall Street, NYC
$16M paid off
Spring Creek Towers, NYC
$15M paid off
Trump International Hotel Las Vegas
$12.5M paid off
555 California Street, San Francisco
$11M paid off
6 East 57th Street, NYC
$5M paid off
U.S. golf courses
$4M paid off
Trump Park Avenue, NYC
$2M paid off
Trump Plaza, NYC
$1M paid off
Homes in Palm Beach FL
$700k paid off
Trump International Hotel & Tower, NYC
$500k paid off
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October 29, 2020 at 05:30PM
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How Trump Has Quietly Paid Down $67 Million In Debt While In Office - Forbes
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