Trump announces he has taken a $1.2B loan against the Bank of America Center skyscraper he co-owns i

[Klaralven]

Trump announces he has taken a $1.2B loan against the Bank of America Center skyscraper he co-owns in San Francisco with real estate giant Vornado - and the refinancing gives them a $617M payout

Former President Donald Trump announced on Wednesday that he has taken a $1.2 billion loan against his Bank of America skyscraper in San Francisco - his most valuable asset - but does not identify the lender.

The statement was tweeted by Maggie Haberman of The New York Times and comes amid revelations of his fury that New York State Attorney General Letitia James has opened a criminal investigation into his taxes.

'A loan of $1.2 billion has closed on the asset known as the Bank of America Building (555 California Street) in San Francisco, CA. The interest rate is approximately 2%. Thank you!' Trump said in the statement.

Bloomberg reported that investors had bought the $1.2 billion of bonds in a deal that was described as 'in line with other recent office-tower deals.'

The bonds were used to refinance a previous loan on the property. It gives Trump and the Vornado Realty Trust a payout of $617 million, the outlet reported at the time.

https://www.dailymail.co.uk/news/article-9598615/Trump-announces-taken-1-2B-loan-against-Bank-America-skyscraper.html

[StarfishSaver]

1. Because billionaires need loans to refinance previous loans.

Right, Donnie

We know you're broke and about to get even broker.

[JohnSJ]

2. I would love to know the lender where he got the financing. It would tell me who to avoid

doing banking with

[spooky3]

4. Putin's People's Bank? Nt

[JohnSJ]

5. Probably

[ProfessorGAC]

45. It's Not "He"

Vornado, which preponderantly owns the building, got the financing.
He's just a lucky beneficiary of having a controlling partner who actually knows how to make money.
Nobody is restructuring debt for HIM! His partner has the asset base & financial position to be creditworthy.

[JohnSJ]

51. If it is the BOA with the chopped liver sculpture at its base, and the one up restaurant on top, I

didn't even realize that Vornado Realty Trust owned the majority of it, yet alone trump had some interest in it.

The OP is misleading then, since it implied that someone was providing refinancing for trump of over a billion dollars in debt for him, and they they wouldn't name the lender.

[ProfessorGAC]

54. The Lede Is Pretty Vague

This story actually came out about a week ago, and the article posted here in GD then had decent detail on the deal.
Somebody at Vornado is financially sharp!

[JohnSJ]

56. Thanks for setting me straight

[aeromanKC]

3. Great, more liquid assets to RICO

[2naSalit]

9. +1

[jmowreader]

6. Umm...

...when non-rich people pay their MasterCard bills with their Visa cards, it’s a sign they’re close to bankruptcy. This is what Trump just did, but on a bigger scale.

[2naSalit]

10. +1

One of my siblings and their spouse went to one of his "how to grift" seminars years ago. Said all they did was explain how to keep moving your money around constantly to keep it from being found by creditors and others while you continue to scam everyone you meet.

[Blue Owl]

7. T***p spotted at Palm Springs Check N' Go

[img][/img]

[Aristus]

8. A guy in his level of debt doesn't borrow that much more unless he knows he'll be dead

by the time the bill comes due.

I wonder how long that will be?...

[2naSalit]

12. +1

[Ilsa]

16. Excellent point. I wonder what his kiddos think of this?

Maybe he wants some of the money to buy off Malignia as she files for divorce.

2% seems an especially low interest rate. Current prime is 3.25%, last time I checked.

[Aristus]

19. It could be another money laundering scheme.

In which case, his kids will benefit.

[JT45242]

34. Seems in line to me as a rate

Depending on the length of the refi typical rates right now are 1.5-3% for normal folks.

The percentage isn't totally out of touch with rates at bankrate.com

The big question is who would risk that much money to him (even 30% of it to him is a lot of money that the bank is not likely to ever see) given his crappy history of not repaying loans.

[Ilsa]

60. Hence, the higher rate should be expected.

Below prime, though? I wonder if the rate floats if it's long term?

[SergeStorms]

30. Or takes the money and runs...

to a country from which he can't be extradited. Say.....Russia, perhaps?

[Aristus]

32. Fine. Let him go.

Let the Russians have to choose between the stench of Trump and the stench of fish-and-borscht.

[SergeStorms]

33. I'm all for it....

except him escaping justice once again. I guess just being him is punishment enough.

[Aristus]

13. He's not living in our heads; he's living in our country.

Which he tried to destroy. One ignores that at one's peril.

Throwing shade on DU-ers is not the best way for newbies to ingratiate themselves at DU.

[48656c6c6f20]

21. Ok May 20th

Does that mean you're OK with his attempted coup and we should just forget about it?

[Aristus]

27. Why not?

After the Beer Hall Putsch, we never heard from that skeevy little watercolor artist Adolf Hitler again...

Good thing, too. We wouldn't want him living in our heads...

[Scrivener7]

36. Yes! We should all just ignore the former guy. Thank God people join up here specifically

to tell us that! Otherwise we'd never know!

Because you know, as the hour old poster says, if Donny isn't thinking of you, you shouldn't be thinking of him!

[FakeNoose]

14. Hah! because he'll die before it's time to pay up

His kids will get NO INHERITANCE - mark my words.

[jmowreader]

17. That's where you're wrong

They’ll inherit his debt...and a lot of the people he owes money to have violent ways of getting it back.

[Sur Zobra]

31. Ivanka and Jared are rich

from their own grift of hundreds of millions. They’ll be ok, but the bobsey twins might have to tighten their belts

[Comfortably_Numb]

15. Sounds like douchebert's lawyers insisted on cash up front to represent his grifting ass

in his many active court cases.

[Cracklin Charlie]

24. Exactly what I thought.

[atreides1]

18. You need money to run...

And I don't mean run for office, either! With both the NY AG and the Manhattan DA working together, old Donnie Two Tones is going on vacation...and likely to a place where the US doesn't have an extradition treaty...or the host country doesn't give a shit!

This is of course is just an opinion!

[uponit7771]

20. Wow who gave him this loan!!!

[Midnight Writer]

23. Really. What happens to this loan if he dies?

[ProfessorGAC]

46. See Above

Nobody gave T***p a loan.
Vornado arranged the refinancing and he's just going along for a free ride.
They're creditworthy, not him.

[Botany]

22. Is Trump just borrowing money to stay afloat?

I might be wrong but I think Trump is dead ass broke and he is borrowing the money in order to
service his other debts*. BTW Shouldn't the building's tenets pay enough rent to keep "it" going?


* The Steele Dossier which said Trump owed money to China, Russia, Saudi Arabia, middle east **
countries, and or criminal organizations/oligarchs in those countries.


** https://www.newyorker.com/magazine/2017/03/13/donald-trumps-worst-deal
Donald Trump’s Worst Deal

[Hortensis]

35. Sounds like it, his usual for decades. He's reportedly been

losing more on his real estate holdings than they've brought in for years, and of course all properties continue to depreciate.

When do we get to hear about investigations into shady deals in Azerbaijan, Russia, money laundering?

Itm, he really needs his "people" to cut deeper into their Depends budgets for him. This was a bad time for him to lose Twitter.

[Botany]

42. In 2015 and 2016 Trump's links to the mafia both Italian and Russian, along with his money ....

.... laundering, that he really wasn't a billionaire, that he was a con man, and that his show "the
apprentice" was phony (turned out funded by Russian money) were well known but all we heard
about was Hillary and her emails.

[Hortensis]

49. Well, that's CNN and MSNBC, and Fox, AP, NYT, etc, etc, etc., all right.

I hadn't heard that Russia funded The Apprentice (?) but that Jeff Zucker acting for CBS Corporation and then CNN (Warner Media/AT&T) created and sold Trump the Penultimate Leader to a nation of open mouths for the orange product they stuffed in them. Of course CNN gave Trump hours of air time most days while he was running.

[Botany]

50. Russia had to market "their boy" to the Rubes as a ...

... business genius and billionaire not the failed businessman that he was.

Btw when Trump said, "you're fired" a producer was in his ear telling him that.

[Hortensis]

53. :) I've heard the directors threw away far more flubbed lines and takes

than they were able to use.

Although Russia used their huge state resources to augment American media messages, NBC/Zucker (now President and CEO of NBC Universal, including MSNBC) especially and then CNN created Trump-the-Great-National-Leader in time for him to run in 2015. Russia did whatever it did with and in addition to that.

[gab13by13]

26. Who can believe what MF45 says?

No US bank would loan him money, not disclosing who the lender is, is a tell. Hey, maybe VTB bank?

[TreasonousBastard]

28. Does he mention he only owns 30% of the building and Vornado actually...

runs things? The only profitable things he "owns" are where he has a minority stake and can't touch the money.

It looks like nobody "gave him a loan". This was a bond issue put out to market, and that's what they got. More on Vornado's creditworthiness than Trump's, nor doubt.

It is, btw, normal for big RE players to refinance regularly. I'm not completely sure how it works, but you get depreciation allowances. Crazy as it sounds, for tax purposes the buildings depreciate fully over 10 years, so you refinance to set up a new value to depreciate from. Lowered interest rates in this case are just a little more gravy.

[Brother Buzz]

29. My Magic 8 Ball says...

the orange anus is gonna take his share and walk away, leaving Vornado run the show.

In typical fashion, the orange anus brags about a $1.28B loan, then grabs his share, a paltry $194 million, and runs . Seems like he did the same shit with the Atlantic casinos.

[BlueIdaho]

37. Cash is king

Especially if you are eyeing a sudden move overseas. 😉

[Brother Buzz]

40. That, plus those peaky defense lawyers require cash upfront

[Beachnutt]

38. He's gonna need it to pay fines and back taxes after his trial...

the orange anus is thinking ahead....hehe

[world wide wally]

39. Legal expenses?

[Faux pas]

41. Kickin' with disgust!

he just carries on as if everything is just fine and dandy.

[Yavin4]

43. At some point, I would love a definitive book on how the Trump "empire" actually works.

From the outside, it looks like a bunch of banks just keeping lending him money for no good reason.

[C_U_L8R]

44. Even DogeCoin is a smarter bet than Trump.

[Yo_Mama_Been_Loggin]

47. Does the lender have the initials VP?

[ProfessorGAC]

48. To Clarify

Nobody refinanced this loan arrangement for T***p. He's not creditworthy.
Vornado, who owns 5/7ths of the building is and they did the refinancing arrangement.
The fool is just the lucky beneficiary of having partners that actually know how to make money, & have the financial condition to make them a reasonable risk.
His $180 million cut of this deal isn't enough to pay more than 5 months of interest on loans already extant to the organization & him personally.
But, he does luck into not having to cover that interest for a while.

[Vinca]

52. So I guess that means he'll start paying his defense lawyers . . . right??

Of course I'm joking. He's got suckers to grift for his legal fees.

[DFW]

55. When the building is renamed, we'll know

When the Bank of America logo comes down, and it is renamed the Gazprom-Rosneft building, speculation can end.

[Klaralven]

58. It actually hasn't been the Bank America Building since Nations Bank acquired BofA in 1998

Although Nations changed its name to BofA, the headquarters moved to Charlotte, NC.

I'm not sure when Trump became an investor, but Vornado has had a majority interest since 2007. https://en.wikipedia.org/wiki/555_California_Street

Back in the day, at the top was the Carnelian Room, a wonderful place to have a drink after work and watch the fog roll through the Golden Gate. However, these real estate people have no class.

Vornado gutted the space in 2010, after the Carnelian Room (and Bankers Club) had closed — 7,600 pounds of oak and mahogany paneling was hauled away by Ohmega Salvage. Since then the space, which has panoramic views and 25-foot ceilings, has been marketed to both restaurant and private clubs, as well as office users. It’s safe to say that most people in the San Francisco brokerage community thought that the floor would be taken by a hedge fund or private equity group, rather than Finnish gaming developer

https://www.bizjournals.com/sanfrancisco/blog/2013/12/sign-of-the-times-finnish-gaming.html

[DFW]

59. Knowing Trump, I doubt he put up a cent for his "half"

He probably did what any self-proclaimed "King of Debt" would do: he would have used his (already leveraged) purported "ownership" in other entities as his "payment," and declared himself half owner. His debts could easily equal or exceed what he will get out of this sale, so I'm betting the only money he gets out of this sale will be the few million he'll be able to skim off the top before the creditor sharks close in for whatever they can grab. Even that won't do him much good if other creditors and unpaid lawyers are waiting to get paid for their own bills.

[Klaralven]

63. S.F. skyscraper owned by Vornado, Trump may sell for less than expected

The owner of San Francisco's fourth tallest skyscraper has downgraded expectations about how much the building could fetch under current market conditions.

During an earnings call Wednesday, Vornado Realty Trust CEO Steven Roth said the company continues to actively market 555 California St. in San Francisco as well as 1290 Avenue of the Americas in New York but hopes of achieving top prices for the high-profile properties have now diminished.

"There is active interest from investors and the widespread appreciation for quality of these assets. But given investor caution, it does not look like we're going to achieve our original top tick pricing objective," Roth said. "Nevertheless, we continue to actively pursue a transaction involving these assets, which may take the form of a sale, a partial sale, a joint venture or a refinancing."

https://www.bizjournals.com/sanfrancisco/news/2020/11/05/trump-owned-sf-skyscraper-to-sell-for-less-555.html

Couldn't sell for a high enough price, so refi it is.

[11 Bravo]

57. Anyone dumb enough to lend money to Lard Butt deserves to get stiffed.

[joetheman]

61. You need to draw your money out of nay bank that would give Trump a loan now. nt

[Marthe48]

62. not just where the $ is coming from

where is it going?

How individual 1 can burn through the amount that funnels into his pockets is a another question that needs to be answered.