Trump's 40 Wall St. Saga: Mortgage Reportedly Transferred To Special Servicer Amid Soaring Costs And Spike In Vacancy

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.

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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."

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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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