The mortgage of the Manhattan tower at 40 Wall St., associated with former President Donald Trump, has been reportedly shifted to a special servicer.
Since February, the Financial District building has been under watchlist surveillance due to rising costs and increasing vacancies, according to a news report by Bloomberg.
"Contact has been made with the borrower and a pre-negotiation letter is being reviewed," read a filing issued on Friday on the building's commercial mortgage-backed security, which Bloomberg noted in its report.
Debt payments for the 72-story building have been consistently made up to this month. The outstanding balance on the 40 Wall St. mortgage stands at $122.6 million, reduced from the initial $160 million, as per the details in the loan documents.
The mortgage for 40 Wall St. carries a 3.67% interest rate and is set to mature in July 2025. As of June 30, the tower's occupancy rate had declined to 77%, down from 98% at the time the loan was initiated in 2015.
Representatives of Rialto Capital, the special servicer, didn't immediately respond to requests for comment from Bloomberg.
"The loan is in full conformance," a Trump Organization spokesperson told Bloomberg in an email. "We have never missed a payment, we have never paid late and we have never breached a loan covenant. We are incredibly proud of 40 Wall St. and we will continue to operate this world-class building."
Trump is currently embroiled in a civil fraud lawsuit, in which New York Attorney General Letitia James alleges that he, along with his co-defendants, deceived banks, insurers and others by exaggerating his wealth in financial statements. James is pursuing fines and penalties, including a proposal to prohibit Trump from operating a business in New York.
Trump has refuted any wrongdoing, asserting that his net worth significantly surpasses the figures stated by the state.
Trump's fortune is currently worth $3.1 billion, up from $2.6 billion in 2021, according to the Bloomberg Billionaires Index.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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