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Thursday, October 22, 2020

Donald Trump Has At Least $1 Billion In Debt, More Than Twice The Amount He Suggested

The president’s liabilities are spelled out in dozens of documents, published here.

No aspect of Donald Trump’s business has been the subject of more speculation than his debt load. Lots of people believe the president owes $400 million, especially after Trump seemed to agree with that figure on national television Thursday night. In reality, however, he owes more than $1 billion. 

The loans are spread out over more than a dozen different assets—hotels, buildings, mansions and golf courses. Most are listed on the financial disclosure report Trump files annually with the federal government. Two, which add up to an estimated $447 million, are not.

It is important to note, as Trump did Thursday night, that he also has significant assets. Forbes values them at $3.66 billion, enough to make his net worth an estimated $2.5 billion. He is not broke, despite what many critics claim.

Some people also like to suggest that Deutsche Bank is the only institution willing to lend to Trump. That’s not true. The president’s creditors include at least six other institutions, two of which began or reworked deals while the president was in office.  

One reason for all the confusion: Trump’s loans are not fully transparent. It’s still unclear to whom he owes an estimated $162 million against his skyscraper in San Francisco, for example. The loan against 1290 Avenue of the Americas is also something of a mystery. And it’s difficult to pin down the amount the president owes on a loan tied to his Bedford, New York mansion. When asked about all of this, the Trump Organization did not respond.  

Here’s what we know—and don’t know—about the president’s debt.

1290 Avenue of the Americas

What Trump owes: $285 million

Who is the creditor: Unclear (see below)

When it’s due: November 2022

Interest rate: 3.34%

The documents:

Donald Trump owns a 30% interest in 1290 Avenue of the Americas, which might explain why he does not list its debt on the financial disclosure report he files annually with federal ethics officials. Trump’s share of the debt on the building appears to be the largest liability in his entire portfolio. In 2012, he and his business partner, Vornado Realty Trust, got a $950 million loan from four financial institutions: Deutsche Bank, UBS, Goldman Sachs and the state-owned Bank of China. It is not clear exactly who holds the debt today. The Bank of China told Politico that it had sold off its portion of the loan.

Trump International Hotel Washington, D.C.

What Trump owes: Est. $170 million

Who is the creditor: Deutsche Bank

When it’s due: Sometime in 2024

Interest rate: Variable

The documents:

Trump funded his redevelopment of the Old Post Office building in Washington, D.C., which now serves as the Trump International Hotel, with a $170 million mortgage from Deutsche Bank. It’s possible that Trump does not still owe all of that money today—the New York Times, which has access to Trump’s tax-return data, recently reported that the loan has a balance of $160 million. Regardless of the exact amount of principal outstanding, it doesn’t appear that the hotel is doing well enough to cover the interest expenses with profits from the business.  


555 California Street

What Trump owes: Est. $162 million

Who is the creditor: Unclear (see below)

When it’s due: September 2021

Interest rate: 5.1%

The document:

Trump also owns a 30% stake alongside Vornado in 555 California Street, a skyscraper in downtown San Francisco. The partners have been paying down the loan, but they might make changes to it soon. In June, Vornado announced that it was considering whether to recapitalize 555 California Street and 1290 Avenue of the Americas. Any transaction involving those two buildings could have a huge effect on Trump’s business, given that his stakes in the two properties are his most valuable assets.  

40 Wall Street

What Trump owes: $138 million

Who is the creditor: Ladder Capital

When it’s due: July 6, 2025

Interest rate: 3.665%

The documents:

Weeks after announcing his initial presidential run, Trump refinanced his skyscraper in downtown Manhattan, borrowing $160 million. He has been paying down the debt ever since, but he still owes $138 million, according to documents filed with the Securities and Exchange Commission.

Trump National Doral

What Trump owes: Est. $125 million

Who is the creditor: Deutsche Bank

When it’s due: Sometime in 2023

Interest rate: Variable

The documents:

Trump got a $106 million mortgage against his Miami golf resort from Deutsche Bank in 2012, at the time that he purchased the property. In August 2015, shortly after Trump launched his presidential bid, he got a second loan against Doral, this time for $19 million. It’s possible that his debt on the property is now more than the $125 million combined value of the mortgages. The New York Times reported last month that Trump’s balance totals $148 million.

Trump Tower

What Trump owes: $100 million

Who is the creditor: Ladder Capital

When it’s due: September 6, 2022

Interest rate: 4.2%

The documents:

Trump took out an $100-million, interest-only loan against his signature Fifth Avenue tower in 2012. The property kicked off $13.3 million of net operating income in 2019, more than enough to cover the roughly $4.2 million Trump owes in annual interest expenses. Paying back the $100 million principal, due in two years, could be more complicated.

Trump International Hotel & Tower (Chicago)

What Trump owes: More than $75 million

Who are the creditors: Deutsche Bank, Chicago Unit Acquisition LLC

When it’s due: 2024 for part of it, unclear for the rest

Interest rate: Variable

The document:

The debt against Trump’s Chicago tower includes the most confounding liability in his portfolio. In addition to a Deutsche Bank loan for what seems to be $45 million, there’s a loan of more than $50 million, from a creditor named Chicago Unit Acquisition LLC. Here’s where things gets confusing: Donald Trump owns Chicago Unit Acquisition LLC, so he’s lending money to himself. If one of his companies owes more than $50 million to another one of his companies, then the company lending the money should theoretically be worth more than $50 million. But Trump does not list any value for Chicago Unit Acquisition LLC on his financial disclosure report. All of this has befuddled investigative reporters from Mother Jones, the Washington Post and, yes, Forbes for years.

Trump Plaza

What Trump owes: $13 million

Who is the creditor: Ladder Capital

When it’s due: July 6, 2024

Interest rate: 3.85%

The documents:

Through a company called Trump Plaza LLC, the president controls two brownstone apartment buildings, a garage and a strip of retail shops on Third Avenue in New York City. From 2017 to 2019, one of the tenants paying rent to Trump Plaza LLC was Trump’s 2020 reelection campaign.

Palm Beach, Fla. home

What Trump owes: Est. $11 million

Who is the creditor: Professional Bank

When it’s due: June 1, 2048

Interest rate: 4.5%

The documents:

Trump took out a 30-year, $11.2 million mortgage from Professional Bank on May 16, 2018, the day he purchased an $18.5 million home near Mar-a-Lago from his sister, Maryanne Trump Barry.

Trump National Golf Club, Colts Neck

What Trump owes: Est. $11 million

Who is the creditor: Amboy Bank

When it’s due: Sometime in 2028

Interest rate: 5.25%

The documents:

Trump purchased a golf club in Colts Neck, New Jersey for $28 million in 2008, borrowing $18 million from a local institution called Amboy Bank. In 2019, the club produced just $7.6 million of revenue, suggesting it’s now worth about half of what Trump paid for it. Forbes estimates he still owes roughly $11 million on the property.

Trump Park Avenue

What Trump owes: Est. $10 million

Who is the creditor: Investors Savings Bank

When it’s due: Sometime in 2020

Interest rate: 3.25%

The documents:

The president’s financial disclosure report, which discloses assets and liabilities in broad ranges, lists the loan against Trump Park Avenue at $5 to $25 million. Patrick Birney, who works in financial operations at the Trump Organization, said in February 2019 that the balance was just under $10 million. It’s possible that the principal is lower today.

Trump National Golf Club, Washington, D.C.

What Trump owes: Est. $7 million

Who is the creditor: Chevy Chase Trust Holdings

When it’s due: Sometime in 2029

Interest rate: 5.5%

The documents:

Trump took out a $10 million loan in 2009, when he bought a golf course near his future home for $13 million. Forbes estimates its principal outstanding is now more like $7 million. With a 5.5% interest rate, it’s one of Trump’s priciest loans.

Trump International Hotel & Tower (NYC)

What Trump owes: $6 million

Who is the creditor: Ladder Capital

When it’s due: August 6, 2026

Interest rate: 4.05%

The documents:

Five months before he was elected president, Donald Trump refinanced the debt against this tower on the corner of New York City’s Central Park.

Seven Springs

What Trump owes: $5-25 million

Who is the creditor: The Bryn Mawr Trust Company

When it’s due: Sometime in 2029

Interest rate: 4.5%

The document:

At some point last year, while the president was in office, the Trump Organization reworked the loan against his New York estate. The maturity date moved from 2019 to 2029, and the interest rate jumped from 4% to 4.5%. It’s unclear exactly how much the president still owes on the loan.

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