Why Is Trump Borrowing $100 Million From California Bank?

KEY POINTS

The Trump Organization has a separate $100 million loan due in September
The Trump Organization refused to disclose the interest rate and terms of the new loan
The refinancing comes days after the organization's accounting firm said the company's financial statements were unreliable

Former President Donald Trump has refinanced the mortgage on the Trump Tower with a loan worth $100 million from the Axos Bank in California, New York City records showed.

San Diego-based Axos Bank finalized Trump’s $100 million loan on Feb. 17, a new filing with the city showed. The bank’s CEO, Greg Garrabrants, is known for donating large amounts of money to Republican campaigns since 2012. He has also contributed $9,600 in donations to Trump’s campaign, data from the Federal Election Commission showed.

The Trump Organization did not disclose the interest rate on the loan from Axos Bank. It is also unclear what other terms were included in the $100 million loan.

The Trump Organization had a previous mortgage on the real estate worth $100 million from commercial real estate investment trust Ladder Capital. That loan is scheduled to come due in September, according to Forbes.

The loan from Ladder Capital was previously placed on a debt watch list after Wells Fargo said Trump Tower’s occupancy dipped from 85.9% to 78.9% at the end of 2020. The building’s real estate income only hit $33.7 million in 2020 and $7.5 million in the first quarter of 2021.

Additionally, multiple Trump Tower tenants had also fallen behind on rent, including Marc Fisher Footwear, which had $1.5 million in unpaid rent. The Trump Organization later filed a lawsuit against the company for allegedly failing to pay rent since Nov. 1, 2020. The suit was settled in April for an undisclosed amount.

The refinancing comes after the Trump Organization was indicted in New York for allegedly helping its executives evade taxes. The company is also currently the subject of civil and criminal investigations by the Manhattan district attorney and New York Attorney General Letitia James, who subpoenaed Trump, his son Don Jr. and daughter Ivanka for their testimony.

The loan also comes days after New York investigators revealed a letter from Mazars USA, Trump’s longtime accounting firm, warning that 10 years of financial statements from the Trump Organization and its lenders were unreliable. The Trump Organization has retained a different accounting firm.