Trump Org partner Vornado reportedly considering ditching jointly owned office towers
It's the latest business considering distance from the former president
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A longtime friend and business partner of Donald Trump is considering buying out his company’s share of two major office towers in Manhattan and San Francisco in a move that could damage the former president’s reputation—but also make him many millions and help protect against a wave of business debts coming due.
Vornado Realty Trust, run by Steven Roth, a friend and supporter of the former president has had internal discussions about buying out or otherwise ending the Trump Organization’s minority stake in two buildings: an office tower in Midtown Manhattan, and another in San Francisco’s financial district, the Wall Street Journal reported on Tuesday.
Vornado did not respond to a request for comment from The Independent.
It reportedly hasn’t made any formal offers yet, and has considered withholding income from Mr Trump to force a potential legal confrontation over the joint project.
“Vornado has been an excellent partner so far and we expect that to continue,” Mr. Trump told the Journal, and insisted the Trump Organization has low debt compared to the value of its assets.
The rumoured discussions are the latest blow to Mr Trump’s businesses, after a number of past partners distanced themselves or severed relationships altogether after the riots at the US Capitol.
Vornado, a major holder of office real estate, tried to sell the two towers last year for a combined price tag of $5 billion, but reportedly couldn’t find a buyer willing to pay that price, as high-value investors didn’t want to take over property where the Trump Organization, Mr Trump’s holding company, was involved. The realty trust also was also reportedly unable to refinance the buildings after the Capitol riots.
The towers are an important part of Mr Trump’s business, each giving him more than $20 million in cash flow per year, more than his marquee developments like Trump Tower and the Trump International Hotel in Washington DC.
Still, a sale would have its upside, giving the former president a financial windfall as he faces the more than $400 million in debt he has due in the next few years, much of it personally guaranteed.
If Vornado does go through with severing the partnership one way or another, it would be the latest high-profile former ally of Mr Trump to drop him. After the attacks on the Capitol, Deutsche Bank AG, one of the ex-president’s major lenders, began reportedly considering distancing itself from him, and is unlikely to lend him more money. Other banks, like New York’s Signature Bank and Florida’s Professional Bank said they would close their Trump accounts, while the PGA backed out of its agreement to hold the 2022 PGA golf championship at one of Mr Trump’s New Jersey courses.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments