Jared Kushners $1.2 billion miracle
The 41-story skyscraper at 666 Fifth Avenue in Manhattan was supposed to be Jared Kushner’s signature investment. A 27-year-old Kushner bought the property in 2007 for a record $1.8 billion — the most ever paid for an office tower. The move was supposed to catapult the family real estate firm, previously known for mid-priced apartments in New Jersey, into the big leagues.
It has been an unmitigated disaster.
Shortly after the sale, the recession hit, depressing the commercial real estate market in Manhattan. To keep things afloat, Kushner was first forced to sell the building’s lucrative retail space and nearly half of the office space to Vornado Realty Trust, a firm with much more experience in real estate.
But even that was not enough. The building is aging, and therefore is saddled with high vacancies and low rents. That means that instead of rent payments covering the mortgage, Kushner’s firm and Vornado are having to pour in millions every year to stay current on the debt.
On the horizon is an even bigger problem. The full mortgage for the office space of about $1.2 billion becomes due in February 2019. Many real estate experts believe that the mortgage balance exceeds the value of the portion of the property still owned by Kushner, making refinancing a challenge.
https://thinkprogress.org/the-kushners-mysterious-1-2-billion-bailout-92f6c12de50c/
November 2018 cannot get here fast enough to bring this crime family into a public committee to answer some quesstions
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