Trump Organization puts Washington DC hotel rental up for sale in SECOND attempt to dump real estate
The Trump Organization has put the lease of its Pennsylvania Avenue hotel in Washington DC up for sale in a second attempt at dumping the property, it has been reported.
Former President Donald Trump’s company, which does not own the building, is leasing it from the General Services Administration and has hired the Newmark Group to sell the lease, sources told the United States. Washington Post.
Trump, whose company has been plagued by the COVID-19 pandemic, faces a $1.1 billion mountain of debt in its skyscrapers and golf courses — $900 million of which within the next four years, the Financial Times revealed in October.
The revelation also comes on the heels of an announcement that a grand jury has been formed to investigate Trump’s finances and whether he has inflated and lowered the value of his assets to secure funding and avoid tax liabilities.
The Trump Organization has put the lease of its Pennsylvania Avenue hotel in Washington DC up for sale in a second attempt to dump the property
Trump, whose company has been plagued by the COVID-19 pandemic, is facing a $1.1 billion mountain of debt in his skyscrapers and golf courses. PICTURED: Trump International Hotel in Washington DC
Manhattan District Attorney Cyrus Vance Jr., who is conducting one of the investigations into Trump’s business dealings, has investigated the DC hotel, among other properties, the Wall Street Journal reported last week.
It remains unknown what role the hotel may play in Vance’s investigation or a concurrent investigation by New York Attorney General Letitia James.
Trump’s company had previously attempted to sell its Pennsylvania Avenue hotel lease in the fall of 2019 when the rooms were half-empty, the Washington Post reported.
The hotel suffered further during the pandemic, with sales plummeting 62 percent as luxury travel took a hit, in part due to the government shutdown, and the listing was withdrawn, the outlet reported.
The business of the 263-room hotel also suffered from Trump’s political stance and opposition from the Jan. 6 Capitol riot, after which some experts Hollywood Reporter his company can never regain its status.
If Trump can sell the lease, industry experts told the Washington Post that Trump’s name would likely be removed from the building. However, the Hollywood Reporter noted that when the Trump Organization wanted to sell the lease in 2019, “any deal would stipulate that the new owners keep the Trump name.”
Eric Trump, the executive vice president of his father’s company, said in 2019 that the company was looking to sell the lease for about $500 million after the company spent about $200 million to renovate the old post office.
Deutsche Bank, which reportedly owes Trump a whopping $340 million, loaned the former president $170 million just for the failing Pennsylvania Avenue hotel.
DailyMail.com has reached out to the Trump Organization for more information and additional comments.
Trump’s company had previously tried to sell its Pennsylvania Avenue hotel lease in the fall of 2019 when the rooms were half-empty.
The hotel, frequented by its allies and supporters during his presidency, has suffered from the coronavirus pandemic and as a result of some of his political stances
Deutsche Bank, which reportedly owes Trump a whopping $340 million, loaned the former president $170 million just for the failing Pennsylvania Avenue hotel
During Trump’s presidency, Democrats criticized the General Services Administration and Trump after it emerged that Saudi Arabian lobbyists had booked 500 rooms at the hotel in just three months after the 2016 election.
The former president recently revealed that he has taken out a $1.2 billion loan against his Bank of America skyscraper in San Francisco – his most valuable asset.
“A $1.2 billion loan has been taken out on the asset known as the Bank of America Building (555 California Street) in San Francisco, CA. The interest is about 2%. Thank you!’ Trump said in the statement.
Bloomberg reported that investors had bought the $1.2 billion worth of bonds in a deal described as “in line with other recent office tower deals.”
The Bank of America building, which is owned by a minority of Donald Trump, is pictured in downtown San Francisco
The bonds were used to refinance a previous loan on the property. It will give Trump and the Vornado Realty Trust a $617 million payout, the outlet reported.
The refinancing and payout came after multiple banks previously used by Trump cut ties with him in the wake of the Capitol riots.
Trump owns 30 percent of the San Francisco building, which is largely owned by Vornado. The building, one of the tallest in the city, is “the most valuable part of his portfolio” and is worth about a third of his $2.3 billion net worth. Bloomberg reported.
The Vornado Realty Trust issued a press release on May 10 announcing that the refinancing of the three-building campus had been completed and that it has “sole decision-making authority.”
The loan replaces a previous $533 million loan with a 5.10% fixed interest rate, the company said. That loan was due to expire in September 2021 — when full payment would be due.
According to the company, the new deal will have a variable interest rate used by major international banks to lend to each other, plus additional interest for several years over the life of the loan — rather than the previous fixed rate.
However, Vornado said that — in the first three years of the loan — the company said it traded its share to pay a fixed rate of 2.26%.
The new loan will expire in May 2028 and will have a LIBOR rate plus 1.93% for the first five years. In the sixth year, the interest on the loan is set at a LIBOR rate plus 2.18% — and a LIBOR rate plus 2.43% in the final year, according to the release.
Vornado said his share of the net proceeds from the refinancing was about $454 million — meaning the most Trump could have seen was about $194 million, as noted by the Twitter account @southpaw.
A render of Virtuoso Travel’s homepage can be seen after the company removed Trump hotels from its listings
A sign for Trump National Doral Resort in Miami, Florida is seen at the entrance to the golf resort
A February filing with the Securities and Exchange Commission shows that the company is currently redeveloping 555 California and 345 Montgomery Street for $66 million, Business Insider reported.
The outlet reported that before Trump became president, he had also tried to sell his stake in the San Francisco properties.
Vornado later considered buying out Trump’s stake in the building complex when banks and corporations cut ties with him.
Trump’s largest debt is his 30 percent stake in 1290 Avenue of the Americas in New York City, for which he owes $285 million in debt.
The debt is owed by the partnership, Trump and Vornado Realty Trust, but fluctuations in the value of the debt would directly affect his equity in the properties.
The loan on the New York building was originally provided by Deutsche Bank, UBS, Goldman Sachs and the state-owned Bank of China, but they sold it a long time ago and it is not clear who now owns the debt.
Trump’s tax returns, which The New York Times uncovered last year, it turns out that the National Doral in Florida has also lost a lot of money.
The Miami golf resort bled $162 million between 2012, the FT reported.
In March, a luxury travel booking agency quietly deleted all listings of Trump Hotels and resorts from its elite “invitation-only” services.
Virtuoso Travel, a Texas-based agency specializing in luxury and experiential vacations, has dropped all former President Donald Trump’s hotels considered as partners, Zenger News revealed.
The agency had considered six of Trump’s 10 hotel partners in its Virtuoso network, which offers travelers VIP treatment and special access, Washington Post reported. It was not immediately clear which six hotels were previously listed by the company, which has since removed them from the website.
Virtuoso previously promoted its ties to the Trump International Hotel in Washington, DC ahead of its opening in 2016, according to a volgens press release at the time, saying it would join the “valued landmarks of our nation.”
In addition to the DC hotel, Trump has six other hotels in North America: Albemarle Estate In Charlottesville, Virginia; Trump International Hotels in Las Vegas, Nevada and Waikiki, Hawaii; National Doral in Miami; and Trump International Hotel and Tower in Chicago and New York City.
Trump also has the Macleod House & Lodge in Scotland; the Trump Turnberry, also in Scotland; and Trump International Golf Links & Hotel in Ireland.