Donald Trump’s net worth has long been a subject of interest and speculation, particularly in light of his recent legal setbacks. Following a New York judge’s decision holding Trump liable for inflating the value of his real estate holdings, questions arise about the potential impact on his assets, including a share in a San Francisco tower.
The ruling raises the possibility of Trump’s real estate assets being seized by New York’s Attorney General unless he posts a $454 million bond in the civil fraud case against him. However, Trump’s reported lack of available cash and unsuccessful attempts to secure bonding using his real estate as collateral present challenges.
With a looming deadline to post bond, Trump’s options for generating liquidity appear limited. One possibility is to monetize his stake in a new public company resulting from a merger involving his social media venture, Trump Media. However, reports suggest that this avenue may not yield immediate cash given the tight timeline.
Another option is to sell off portions of his real estate holdings, such as his 30% stake in a downtown San Francisco office complex. Despite the broader trend of underperforming commercial properties in the city, this asset could potentially offer value.
Both paths present challenges, particularly given the urgency of the situation. Reports indicate that time constraints may impede Trump’s ability to convert his stake in Trump Media into cash swiftly. Consequently, selling real estate assets may represent a more viable but still uncertain option for raising the necessary funds before the deadline.
The potential sale of Donald Trump’s minority stake in the Bank of America Complex at 555 California St. could offer liquidity, yet uncertainties surround its valuation, buyer interest, and the speed of any transaction amid challenging market conditions.
Despite a significant portion of San Francisco’s office space remaining vacant due to remote work trends, the 555 California complex is reported to be performing well. It boasts reputable tenants like KKR and Goldman Sachs and maintains high occupancy levels, making it an attractive investment option.
However, recent transactions in San Francisco’s real estate market have seen buildings sold at significantly reduced prices compared to pre-pandemic values. The sale of fully leased trophy buildings like 555 California would provide a better gauge of market value, but such transactions are rare and largely dependent on financing availability.
Estimates for the overall value of 555 California range from $950 to $1,200 per square foot. However, determining its precise worth remains challenging until a comparable sale occurs. Moreover, Trump’s and Vornado’s decision to replace a previous loan with a $1.2 billion CMBS loan in 2021 adds complexity to the equation. The loan’s basis of $666 per square foot necessitates a sale price exceeding this amount for any equity to remain for the owners.
It’s uncertain whether Vornado would consider purchasing Trump’s interest in the complex, and it’s unclear if Trump has the autonomy to sell his stake without approvals from involved entities. Additionally, Trump’s ownership role is described as passive, further complicating potential sale negotiations.