By Dan Alexander
On the corner of 59th Street and Park Avenue in downtown Manhattan stands a beautiful building, Trump Park Avenue. Formerly known as Hotel Delmonico, it features arched windows, marble finishes and penthouses that once sold for more than $ 20 million. Donald Trump still owns several apartments, including one where Jared Kouchner and Ivanka Trump once lived.
Recently, however, the property has lost some of its luster, as due to the pandemic the windows it hosted are now empty. The parent company of the New York Sports Clubs chain, which operated a gym in the building, closed its gyms in March 2020 and filed for bankruptcy six months later. The financial services company Capital One, which paid about $ 1 million a year for the lease of an adjacent space, left in May 2020, about a year and a half before its contract expired.
Like many property owners, the former US president is struggling to keep his commercial real estate leased during the coronavirus era. Prior to the outbreak, Trump rented more than 30 properties in New York. About 1/4 of these employees have either “abandoned” these properties or have ceased their activities, according to a Forbes survey.
Just beyond Trump Park Avenue, the well-being company GNC closed its store in the Trump Plaza property, for which it is estimated that it paid a rent of $ 400,000 per year. A Trump administration spokesman says a new company is set to open soon. The data related to the loan borne by the property show that its income has already decreased by 23% compared to pre-pandemic levels, with the result that its profits have plunged by 43%.
The Starbucks chain maintained one of its busiest stores in the Trump Tower skyscraper, which was also adorned with a signed photo of Ivanka Trump “kissing” a cup of coffee. A Trump spokesman said Starbucks was still paying rent for the building, but that the future did not look bright. coffee chain closed and the store he kept in the hotel.
Not far from the Trump Tower is the huge skyscraper 1290 Avenue of the Americas, in which Trump owns a 30% stake with the listed company Vornado Realty Trust. The former president of the USA is not involved in the daily management of real estate, however he receives a significant amount from it. As a result, it was not only good news that three of the tenants of the premises left: Teresa’s Brick Oven Pizza and Cafe, Earl of Sandwich and Barilla Restaurant. After all, it’s hard to keep a restaurant in downtown Manhattan when so many employees stay home and work from there.
Trump and Vornado are also partners in 555 California Street in San Francisco, another large office building. A property appraisal report released in April said the number of people entering the building dropped from about 5,000 to just 200 during the pandemic. At least five tenants – including Boys’ Deli, Bay Club and Proper Food – have asked for rent reductions, according to the same report.
Signs of recovery?
The Trump World Tower on the east side of Manhattan may have closed at the World Bar, but a sign hung on its door in August stating that Pure Beef Inc. is waiting for a license to operate an alcohol consumption area. A Trump spokesman said the space had been leased and construction would begin soon.
Also in the city center, an Italian bistro called “Nerolab” is preparing to operate on the site of the skyscraper Wall Street 40, which also belongs to Trump.
Gucci, the former president’s most important tenant, who is estimated to pay him $ 24 million a year, reportedly renewed his lease in 2020. Her previous contract expired in 2026, so it is estimated that The company renegotiated its contract early in order to secure a rent reduction.
On the corner next to the Gucci store is Trump’s second most important commercial property, 6 East 57th Street. Nike leased the space for decades, paying about $ 16 million a year, before moving a few years ago, renting the space to the Tiffany jewelry house. The jewelry company is expected to leave the site in 2022. This development may force the former US president to look for a new tenant, especially at a time when commercial real estate continues to “flourish” due to the pandemic.
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Source: Forbes
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