Trump’s Hold on 40 Wall Street Strengthens, Mortgage Transferred to Specialized Lender

by Warren Seah

Former President Donald Trump maintains a firm grip on 40 Wall Street, a prominent office tower in Manhattan, as the mortgage recently shifted to a lender specializing in resolving problematic debt situations. This transfer is a common occurrence when borrowers face an imminent default risk or seek debt relief options.

As of October, the 40 Wall Street loan had a balance of $122.2 million and was transferred to special servicing. However, in December, both CrediQ and Trepp – renowned trackers of properties financed in Wall Street’s commercial mortgage-backed securities market – revealed that the loan was no longer classified as being under special servicing.

A spokesperson for the Trump Organization affirmed that the loan is currently in full compliance, emphasizing their punctuality in making payments and adhering to loan obligations. They expressed immense pride in the operation of the world-class building.

When questioned about the loan’s current status, potential changes to debt terms, and reasons behind its removal from special servicing, the spokeswoman remained silent. Similarly, the special servicer declined to comment.

Matthew Cypher, the director of Georgetown University’s Steers Center for global real estate, explained that being transferred to special servicing usually indicates some risk to bondholders. During the 2007-2008 financial crisis, borrowers typically faced transfers after missing debt payments. However, amidst recent periods of stress like the COVID pandemic, borrowers have proactively sought transfers while pursuing loan modifications, extensions, or other relief options.

Loans generally exit special servicing when debt has been modified or extended, borrowers inject more equity into the property, or the property’s financials show improvement.

Read: Trump’s businesses received $7.8 million from 20 countries during his presidency: report

Trump’s Iconic 40 Wall Street Skyscraper Faces Legal Challenge

Stay tuned for updates on the outcome of the civil fraud trial and the future of Trump’s prestigious 40 Wall Street skyscraper.

  • Trump lashes out, is admonished by judge during testimony in civil fraud trial
  • Office-loan delinquencies hit 5-year high in 2023 and likely will rise even higher, Moody’s says

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