The skyscraper has been losing value since 2014, when the mortgage was originated and 1740 Broadway was appraised at $605 million,
...
Blackstone ceased funding operating shortfalls at the building and stopped paying the mortgage as of March 2022,..”
Interesting.
So it turns out this piece of NYC real estate is worth far less than what it was appraised for (and represented as by the borrower) to the bank.
AND the borrower stopped paying.
If Trump had done this, they would scream “fraud”.
And of course as it happens, the bank was repaid in Trump’s case.
Here, the bank has suffered harm. The borrower stopped paying.
But this is also not “fraud”. It’s just the business of borrowing and lending in a real estate market.
And most likely, Trump will be “convicted” of “fraud” and Blackstone will just get to default on their loan.
Interesting isn’t it?
The building is owned by EQ Office and shares a city block with the Park Central Hotel.
https://en.wikipedia.org/wiki/1740_Broadway
EQ Office (originally Equity Office) is a real estate investment company that owns 80 office properties comprising 40 million square feet. The company is owned by funds managed by The Blackstone Group. The company was formerly known as Equity Office.
https://en.wikipedia.org/wiki/EQ_Office
https://en.wikipedia.org/wiki/EQ_Office