President Trump was “thrilled” that his campaign acquired northern Virginia office space at “bargain basement” rates, a campaign official told the Washington Examiner in an interview in the plush 14th floor offices overlooking the Potomac River from Arlington, Va.

But campaign finance specialists say the "steal" could violate election law, which views below-market rates for rent as an illegal in-kind campaign donation.

The deal was presented as a story of real estate prowess that was a fitting reflection of the man who authored The Art of the Deal. Campaign manager Brad Parscale took advantage of a long-term lease inked in 2013 by a financial firm formerly led by Politico CEO Patrick Steel. The firm, FBR & Co, was acquired in 2017 by B. Riley Financial, and the offices were no longer needed.

“We would not normally have such sleek office space,” the official told the Examiner as he sat in a boardroom with a view of the Washington Monument. “This was a steal. The president was thrilled. We saved multiple millions of dollars. Brad found it and the deal was struck.”

Asked further about details of the deal, the campaign offered two different rental rates. After the issue of election law requirements was raised, the Republican National Committee said that it, and not the campaign, was paying for the office space, but did not identify the rate per square foot.

As first described, Parscale played a starring role finding the spot and then agreeing to a lump sum payment for a period of two years. A campaign official initially said they believed the sublease rate was $36 per square foot, a rate that would have saved the campaign about $1 million over the original lease terms, which specify roughly $57-$58 per square foot.

“Brad found out about it and went to them and said, ‘Hey, would you do a lump sum payment cash up front for the next two years? They said, ‘Sold!' We took it off their hands and sublet it from them. And it came with all the furniture,” the official said. “We saved millions of dollars. I think Brad said we got it for about $36 per square foot, which is bargain-basement for well-situated commercial real estate in Northern Virginia.”

Motioning toward Washington with a building in the way, the official noted, with some chagrin: "The White House you can’t see because Politico is blocking the view.”

Asked for confirmation of rental figures, the official later said financial staff believed the rate was $46, which would roughly halve savings over the original lease. The official said the Trump campaign was paying about $1 million a year for the space, consistent with a $46 rate. A firm called Transwestern secured the deal, the official said. That company declined to comment.

“We are getting a better deal than other newer occupants of this building. Somebody just told me they went in and acquired office space in the building for $57 a square foot, so we are locked into a better rate,” the official said.

When responding to a follow-up inquiry, the campaign official said the original boast of savings reflected the relative cost of Trump Tower in New York, the official campaign headquarters, where market rates would be $4 million more over two years.

Actual steal or bad deal?

Federal election law requires campaigns to pay market rates for rent, or else risk receiving an illegal in-kind donation. At the higher $46 rate, however, it’s possible the sublease resulted in overpayment, which would be allowable.

Subleases are complicated to judge for the Federal Election Commission, and rental rates can deviate from leases without an election law violation, meaning loss to the leaseholder may not necessarily indicate an illegal in-kind donation.

"You can’t get a good deal that’s not available to anyone else, that's a contribution,” said Bradley Smith, a former Republican chairman of the Federal Election Commission. Smith added: "Generally, if the accused party has a reasonably plausible basis for their calculation, they are going to be fine. The FEC is not going to be eager to say the amount charged is wrong.”

In the Rosslyn neighborhood that’s home to the Trump offices, vacancy rates rose in recent years, though the November announcement of Amazon’s looming arrival nearby boosted interest. The Trump campaign arrived in December.

Pointing at potential overpayment, the 15th and 16th floors of the same building currently are advertised for $33 per square foot for a sublease through December. Like the Trump office space, they come furnished, said broker Brent Mathis, who believes the floors have been available roughly three years, meaning when the campaign was looking.

The lower rate for the higher floors could undercut the notion of a "steal," though the official hearing of other new tenants paying higher rates cuts the other way.

It's unclear if luxury features on the higher floors match those of the Trump space on the 14th floor, which also was desirable to the campaign due to specific availability through 2020.

What Disclosures Show

About 40 campaign staff now occupy what will become the operational hub of Trump’s reelection. But it’s not immediately clear from FEC filings what rental rate was paid.

Brendan Fischer, director of the federal reform program at the pro-transparency Campaign Legal Center, said FEC filings available online for the RNC indicate two payments to FBR & Co.: One on Oct. 19 for $250,000, and one on Nov. 14 for $1,060, 277.

If the larger amount was for a one-year lease covering only the 14th floor, the rate would be about $50 per square foot. The rate would be $25 if it was a lump-sum for two years. Neither rate neatly aligns with figures cited by the campaign. FBR leased two other floors in the building, and it's unclear if any of that space is available to the Trump campaign.

Fischer said his group is among those likely to push for more transparency about the arrangement. “The public has a right to know how campaigns and parties spend money and if they are doing it lawfully. And to know from where campaigns and parties are receiving contributions," he said.

B. Riley Financial ignored repeated requests for comment, as did a spokeswoman for the Washington Real Estate Investment Trust, which bought the building last year for $250 million.

Mike Reed, a spokesman for the RNC, confirmed the committee pays for the headquarters, saying in an email: "Yes, the RNC pays for its headquarters space. We now have headquarters offices in both Virginia and Washington D.C. There are RNC, Trump campaign, and other party operatives working out of both headquarters."

Reed did not respond to additional inquires about the rental rate or how the rent was disclosed to the FEC.

"The office space was a good deal, which is in keeping with the President’s desire to run an efficient campaign," Tim Murtaugh, campaign spokesman, said in a statement. "It even came with all of the furniture."