As Donald Trump faces $355 million in court-ordered penalties for conspiring to overstate his worth, all eyes are on his most valuable, if unsung, New York City asset — 1290 Sixth Avenue, an office building where he owns a 30% passive stake.
The tower at West 52nd Street is 70% owned by Vornado Realty Trust, which is headed by Trump’s longtime friend Steven Roth. Although Trump’s name appears nowhere on the building, his minority ownership could be his salvation.
All he needs to do is sell it.
“It would be ironic,” one major Manhattan landlord said, “if Donald escapes by way of a building that doesn’t have his name on it.”
Trump also owns 30% of Vornado’s 555 California St. in San Francisco, an office market in much worse shape than New York’s.
Judge Arthur Engoron put Trump in a deep pickle: He must put up the money before he can appeal the ruling.
CBRE power-dealmaker Stephen B. Siegel, who brokered several Trump transactions including for the Gucci lease at Trump Tower, told The Post, “His part of 1290 Sixth could be worth $600 million before debt.” The tower was refinanced with a $950 million commercial mortgage-backed securities loan in November 2021.
Siegel valued the 2.1 million square-foot tower — which is more than 98% leased according to Vornado’s most recent SEC 10-K filing — at about $900 per square foot. The most recent large deal there was a 175,000 square-foot lease for law firm King & Spalding, as The Post first reported.
A Trump sellback to Vornado at 1290 Sixth would seem to make sense. Roth is said to be skittish about his publicly traded firm’s association with the former (and possibly future) president.
In February 2021, shortly after the Jan. 6 Capitol Building riots, Roth was exploring ways to oust Trump from the partnership, the Wall Street Journal reported at the time. However, nothing came of it and neither Vornado nor Trump confirmed any talks.
Trump might be loath to give up his share of 1290. His minority position reeled in $62 million in rent revenue in 2022, the Real Deal reported.
“A Trump bailout at 1290 is strictly in the realm of speculation,” a source cautioned. “Even if he and Roth want to pursue it, it will keep a lot of lawyers busy.”
That’s if the decision is up to him and not court-appointed monitor Barbara Jones, whose post-verdict role in any sale matter is unclear.
Trump’s other large, more visible asset is 40 Wall Street, the landmark, 72-story Trump Building where he owns the leasehold, not the land.
Siegel estimated the leasehold’s potential sale value at “between $250 million and $300 million — tops. It needs a lot of work.” Trump once considered selling it for $400-plus million and later valued it at $550 million — or twice what outside appraisers said, according to the lawsuit that resulted in Engoron’s harsh penalty.
Siegel noted that the Rudin company was asking a mere $200 million for 80 Pine Street, a similar-size tower nearby. “And it’s in much better condition than 40 Wall,” he said.
By any measure, 40 Wall is troubled. Although the Trump website describes it as a “Class-A” office property, brokers and analysts consider it Class-B. Fitch downgraded a portion of the tower’s debt to a junk level last year before a $160 million mortgage went to special servicing, although it’s no longer classified as such. Although office vacancies are about 18% — not as high as in some other FiDi buildings — older tenants have left and more exits are expected.
Worse, a 22,000 square-foot Duane Reade store closed in October with no replacement in sight. The retail loss is equivalent to the rent from four floors of office space.
“It’s a basket case,” one leasing specialist — not Siegel — said of 40 Wall.
“It’s a beautiful landmark on the outside, but it needs at least $250 million in capital upgrades to be competitive in this market.”
Of course, Trump’s other Manhattan assets could also be sold. But they’re not as large as many people believe.
“The Trump Tower commercial portion is often mistaken for the whole building,” one broker pointed out. “But except for Donald’s own triplex, the other apartments are individually-owned condo units.”
“And the rest of his so-called ‘empire’ in the city consists of a few apartments here and there, a couple of retail units and a garage or two.”
Vornado declined to comment on the 1290 Sixth Ave. situation. Eric Trump, executive vice-president of the Trump Organization, didn’t respond to a request for comment.
