Vornado Tries to Dump Trump’s Stake in Two Office Properties
Another Trump partner is attempting to disentangle itself from the Trump Organization in the wake of Donald Trump’s presidency and the Jan. 6 insurrection attempt.
Vornado Realty Trust is looking to end its partnership with the Trump-led organization in two office properties that the two real estate companies jointly own, the Wall Street Journal reported.
The top brass at Vornado, headed by Trump’s friend and partner Steven Roth, discussed buying Trump out of its 30 percent stake in 1290 Sixth Avenue in Manhattan and 555 California Street in San Francisco, per the WSJ.
Vornado attempted to sell the properties over the summer and then recapitalize them, but both processes were hampered by lenders’ and buyers’ reluctance to be involved with the Trump Organization, the WSJ reported.
Vornado’s move would be a further blow to Trump after many of his previous allies in the real estate and finance world turned their backs on him after he left the White House including Deutsche Bank and Cushman & Wakefield.
While the Trump Organization could use the cash from a sale of its interest, the properties are among its most valuable assets. They produce regular income while some of Trump’s higher profile properties have faltered, especially as the coronavirus pandemic crippled the hospitality industry. The Trump Organization’s revenues fell by nearly 38 percent in 2020, to $278 million, according to recent financial disclosures.
The two properties are estimated to bring in more than $20 million per year, according to theWSJ. Nevertheless, Trump’s namesake tower in Manhattan remains the Trump Organization’s fattest cash cow, Commercial Observer previously reported.
Vornado has the controlling 70 percent stake in the properties, with debt deadlines for both looming this year: $950 million on the New York tower and $543 million on the San Francisco tower, per Vornado’s financial statements. It’s unclear how much of the debt Trump is on the line for.
Vornado and the Trump Organization did not immediately respond to requests for confirmation or comment