Kushners Strike Deal To Offload Troubled Midtown Tower

MIDTOWN MANHATTAN, NY — The real estate firm once run by Donald Trump's son-in-law Jared Kushner appears to be giving up on its aspirations to redevelop a Midtown skyscraper that was once seen as the crown jewel of the firm's New York City portfolio.

Canadian real estate investors Brookfield Properties will lease the entirety of 666 Fifth Avenue, located between West 52nd and 53rd streets, from Kushner Companies the next 99 years with the intention to redevelop the 41-story office building, Brookfield said in a press release.

Brookfield's chairman Ric Clark said that 666 Fifth Avenue can become "one of New York City's most iconic and successful office properties" under the new ownership. The real estate firm plans to redevelop the property.

"Given Brookfield’s experience in successfully redeveloping and re-positioning major office assets in New York and other cities around the world, we are well placed to capitalize on that opportunity," Clark said in a statement.

Kushner Companies — which paid $1.8 billion for the building in 2007 — is essentially cutting its losses on the troubled property.

Brookfield is reportedly paying the entire price of the lease up front in order to pay off outstanding debt on the building, Bloomberg reported. The exact financial details of the deal were not revealed.

Vornado Realty Trust — which owned a 49.5 percent stake in the building — announced earlier this year that it was planning to unload its entire stake. The firm Kushners' deal with Brookfield is expected to provide the family firm with enough money to buy out Vornado's stake and transfer the entire tower to Brookfield, the Wall Street Journal reported.

When Kushner Companies bought 666 Fifth Avenue in 2007 it was expected to become the centerpiece of the firm's New York City real estate holdings. The New Jersey-based firm even moved its offices into the tower. The deal proved very quickly to be a letdown when the real estate market crashed and Kushner Companies were unable to secure any financing to redevelop the office tower, Bloomberg reported.

The property has also landed former chief executive of Kushner Companies Jared Kusher — now a White House adviser for father-in-law Donald Trump — in hot water. Kushner was questioned by the Senate about meeting with Russian bankers to secure a loan for the project.

Members of a Senate committee asked Kushner about a meeting with Sergey Gorkov, the chief of Russian state-controlled bank Vnesheconombank, the Times reported in 2017. Investigators questioned Kushner if he discussed securing financing for any buildings owned by Kushner Companies — including 666 Fifth Avenue.

China's Anbang Insurance Group also backed out of a reported $4 billion development deal with Kushner Companies for 666 Fifth Avenue in 2017, the Associated Press reported.

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