• Sun. Sep 19th, 2021

Vornado Realty Trust considers buying out Trump Organization stake

A real-estate firm run by a former advisor to Donald Trump might end a partnership with the ex-president.

Vornado Realty Trust, New York City’s largest commercial real estate owner and manager, is exploring ways to buy out Trump’s stake in two towers, sources told The Wall Street Journal. Steven Roth, a former advisor to Trump during his presidency, is Vornado’s founder and chairman.

Executives are reportedly considering buying out the Trump Organization’s stakes in two of the firm’s most valuable assets, office buildings on 1290 Avenue of the Americas in Midtown Manhattan and 555 California Street in San Francisco, per the Journal.

Trump Organization owns 30{911ea05452e114f1778c76ca86733b6032c246f8f651bb1f01d12abf04b54efb} of the two buildings, an amount thought to be worth $800 million as of last year. Vornado acquired 70{911ea05452e114f1778c76ca86733b6032c246f8f651bb1f01d12abf04b54efb} of the towers in 2007 for approximately $1.8 billion.

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Before running for president, Trump had sought to cash out the stake in the two buildings after years of unrequited requests to monetize his stake, Insider’s Daniel Geiger reported.

Vornado was not immediately available for comment.

Several prominent business leaders and corporations, including Deutsche Bank, Aon, and Cushman & Wakefield, cut ties with the president after years of working with Trump Organization. Many company decisions occurred after the January 6 insurrection at the US Capitol building led by a violent, pro-Trump mob.

New York Mayor Bill de Blasio confirmed New York City will end contracts with the Trump Organization, and the PGA pulled its 2022 championship from Trump’s Bedminster, New Jersey, golf club.

Financial reports indicate Trump’s businesses took a hit during the COVID-19 pandemic, which particularly hurt the hospitality and travel industries. Trump National Doral Miami gold resort lost $33 million in 2020, Insider’s Hayley Cuccinello reported, and the Trump International Hotel in DC lost $25.4 million.

Trump, who has debts of up to $400 million that will come due in the next few years, has reportedly considered charging tickets to rallies and speeches and landing a book deal to cash-in on his role as former president. The New York Times reported Trump’s outstanding debt using tax documents.