Donald Trump was asked a few days ago if the coronavirus rescue package was going to help his hotels. He said, “I don’t know,” and went on to say about the pandemic, “It’s hurting me. It’s hurting Hilton, all the big chains.” Indeed, the hotel industry is requesting $150 billion as a bailout. Whether they get it or not remains to be seen. But what is carved in stone is that Trump won’t be getting anything. Politico is reporting
“Senate Democratic Leader Chuck Schumer has secured a provision in the agreement that will prohibit businesses controlled by the President, Vice President, Members of Congress, and heads of Executive Departments from receiving loans or investments from Treasury programs. The children, spouses and in-laws of the aforementioned principals are also included in this prohibition.” Schumer’s Dear Colleague letter
“Children, spouses and in-laws” — oh noes! Doesn’t Senator Schumer or the GOP controlled senate know that Jared Kushner’s family is in default on their Times Square property? Bisnow:
The economic fallout from the coronavirus crisis, on top of a declining retail real estate market, could cost the Kushner family its Times Square property. Kushner Cos. failed to make this month’s mortgage payment on the retail space in the old New York Times building, after they were late on the payments for November, January and February, Crain’s New York Business reported.
In addition to the $200M senior mortgage, the company took out an $85M mezzanine loan on the property with two real estate companies, SL Green and Paramount Group. While an SL Green spokesperson told Crain’s that it has divested from the loan, it and Paramount indicated they would look to take control of the property before letting it go into foreclosure, according to CMBS tracking firm Trepp. […]
With most of the city on pause to prevent the spread of the coronavirus — with retailers especially suffering — it would be a major upset if Kushner could find a tenant to fill the empty space. The company, which primarily owned and built suburban apartments before Jared Kushner’s tenure at the helm took it to buying high-priced Manhattan properties, in previous months used alternative loans to finance mortgage payments, like many commercial real estate borrowers in the past few years.
Maybe Jared can hurry up and sell a nuclear reactor or two to Mohammad bin Salman so he can salvage this mess, although frankly I think the Saudi connection is going to dry up soon, if it hasn’t already. MBS is probably yukking it up with Vladimir Putin right now, watching the Trump ship of fools capsize, as they and all of us, always knew that it would.
It looks like Jared will just have to build more slums in Baltimore to make a buck, alas. Congress acted to protect the bedrock of American business, but the termites like Trump and Kushner are on their own. This is what happens when slumlords start believing that they’re masters of the universe. Lesson learned in the Twilight Zone.