Trump’s Shambolic Empire faces great opportunities for another comeback

Photographer: Ted Thai / The LIFE Picture Collection / Getty Images

The day Donald Trump was deposed in Washington, the lobby of his New York tower at Wall St. 40 was almost silent. There were few footsteps on the gleaming marble.

But above the dark and gold elevators, there was trouble in one of the billionaire’s most valuable properties. Within a law firm, two partners had argued over whether or not to pay rent to a landlord who encouraged the Capitol’s deadly riot. On the 24th floor, a nonprofit fighting tuberculosis explored options to leave. On the seventh, the Girl Scouts were figuring out how to break their lease.

And in the basement, vintage bank vault doors weighing more than 10 tons were wide open. There, in a club room that Trump had renovated, the news was playing on a jumbo television in front of an audience with empty armchairs, just as Congress voted against him.

This is how it goes in Trump’s empire as his presidency hangs towards the end.

The Trump organization, run by sons Eric and Don Jr., struggled with the devastating fallout from the Covid-19 pandemic even before their father raided Congress. Attempts to sell his Washington hotel were shelved, his office buildings lost value amidst Manhattan’s abundance of space, and his golf courses were faced with the reality that younger generations aren’t that interested.

Trump was employed worth $ 3 billion. Despite rising stock prices and his own tax cuts, he will be leaving about $ 500 million poorer, according to the Bloomberg Billionaires Index.

Its buildings are saddled with more than $ 1 billion in debt, most of which is due in the next three years and more than a third personally guaranteed. Refinancing would mean lenders and businesses are willing to partner with the only twice-accused ex-president in history.

“Nothing like this has ever happened to him,” said Barbara Res, who was a senior in Trump’s company for years. Will he come back? My gut tells me yes, because he always comes back. But he will not come back the same. “

Deserted Avenue

Trump has already survived corporate bankruptcies, troubled times in Atlantic City, a school that ended with investigations and dead-end brand trips for Trump Steaks, Trump Vodka and even an airline. The man who made “America First” his slogan could now hunt abroad for partnerships and licensing deals.

However, Deutsche Bank AG, his old financier, will not touch him again. Signature Bank, where his daughter Ivanka was once on the board, is closing its accounts. Cushman & Wakefield Plc, a broker for 40 Wall St., is breaking ties, and PGA of America is clear.

The biggest hits for Trump’s fortune are in New York, the heart of his empire, where the Queens-born developer turned into a reality star and then descended his own escalator to enter politics.

Outside Trump Tower, East 56th Street remains blocked, a parking lot for about a dozen black SUVs with government signs. The building has been closed to visitors due to the pandemic, which closed Trump’s grill, bar, cafe and ice cream parlor.

Not that there are tourists for winter ice cream sundaes. Fifth Avenue is almost deserted. Vacant storefronts are on the rise, and some remaining boutiques are now by appointment only. According to the New York Real Estate Board, rents are down 32% from a peak in 2018.

Trump’s cavernous East 57th Street space is currently subleased to the iconic Tiffany’s jewelry store, but a new tenant will be needed soon.

High above, 1,596 square feet of Trumpian extravagance is getting cheaper.

Apartment 55B, with blue lapis floors and medallion ceilings, is listed at $ 2.995 million, about $ 2.5 million less than four years ago. It’s hardly an outlier. Prices at the skyscraper have fallen by a third since Trump took office, StreetEasy data shows.

And even before the Capitol attack, his company offered concessions to some tenants at 40 Wall St., data from the lender shows. The $ 137 million debt on the property was added to lenders’ checklists in November after net income fell below what insurers expected when the debt was issued in 2015.

City rejection

“I don’t believe his name will make a premium right now,” said Warren A. Estis, founder and partner of real estate law firm Rosenberg & Estis and owner of a penthouse on the 86th floor in Trump World Tower near the United Nations. Still, Estis said he hasn’t heard any rumblings from his flat about the removal of Trump’s name from the building.

“What’s in a name? A rose with another name is still a rose,” says Estis. “It seems like Donald is very resilient and I expect he will bounce back from it.”

New York City itself wants nothing to do with Trump. Officials plan to end more than $ 17 million in contracts with the president’s family business, including a carousel and two rinks in Central Park and a Bronx golf course.

“New York City has no legal right to terminate our contracts and if they choose to go ahead, they owe the Trump Organization more than $ 30 million,” the company said in a statement. “This is nothing more than political discrimination, an attempt to violate the First Amendment, and we intend to fight vigorously.”

While police officers kept the public out of Trump Tower, including the Trump Store, there was also some bad news for fans who went online to grab Trump pint glasses for $ 55 or a Trump candle set for $ 80. Shopify refuses to service the website, causing customers are warned that their connection is not private and that “attackers may be trying to steal your information.”

Not long ago, the big question hovering over Trump’s return to the corporate world was whether the former reality TV host would take a foray into conservative media, where product recommendations and licensing deals abound. Now the conversation in financial circles is about whether he can defend his existing empire. He’ll have to convince lenders he’s worth the risk, and prove to developers that his name has enough cache.

“The presidency and Donald’s racist, sexist and xenophobic language have tarnished the brand to the point of making it worthless,” said Michael Cohen, his lawyer turned critic.

Stream Trump

Eric Trump brushed off such claims in one interview with the Associated Press this week, blaming the “cancel culture” for recent hits to the family empire that he said did not threaten the company’s finances. His father, he noted, still has armies of fans: “You have a man who would be followed by a hundred million Americans to the ends of the earth.”

A conservative media manager who is still optimistic about Trump’s prospects for creating a subscription-based video service admitted that recent events could limit potential platforms, advertisers and partners.

Still, the director said even controversial porn providers can find a home online. He estimated that Trump could get 5 million to 15 million supporters to pay $ 10 a month for content, and predicted that gold peddlers and close friends wouldn’t hesitate to advertise.

The Trump organization could also look abroad.