Legal storm sweeps up Trump Tower CMBS loan

27 January 2017

A USD 100m loan tied to President Donald Trump and New York’s Trump Tower that is securitized in WFCM 2012-LC5 is among the collateral being drawn into a political battle by a lawsuit alleging the President’s links to properties that receive payments from other countries violate the US Constitution.

 

-The suit could lead to a change in the ownership of the property or prompt the loan to be prepaid. It was filed on Monday by Citizens for Responsibility and Ethics in Washington, and alleges violations of a foreign emoluments clause of the US Constitution that prohibits the President from “accepting anything of value, monetary or non-momentary, from any foreign government or its agent or instrument without congressional consent.

 

-The WFCM CMBS loan is backed by 244,482 sq. ft. of retail and office space in Trump Tower on Fifth Avenue in Manhattan. The Industrial and Commercial Bank of China is among the tenants that have leased space in the property.

 

-President Trump has said the suit is without merit.