Kushner Cos. Pays $1.1 Billion for Suburban Apartment Portfolio
Last edited Fri Feb 22, 2019, 05:50 PM - Edit history (1)
Source: The Wall Street Journal.
REAL ESTATE
Kushner Cos. Pays $1.1 Billion for Suburban Apartment Portfolio
Acquisition of 6,000 apartments from Lone Star Funds marks family firm's biggest deal in over a decade
By Peter Grant
Feb. 22, 2019 8:46 a.m. ET
Kushner Cos., the family real-estate company of President Trump's son-in-law and senior adviser Jared Kushner, said it has acquired a portfolio of rental apartments for $1.1 billion in the firm's largest transaction in more than a decade. ... The purchase comes less than a year after the company unloaded a Manhattan office tower at 666 Fifth Avenue to Brookfield Asset Management Inc. in a deal that valued the property at about $1.25 billion.
The earlier transaction, in which Brookfield leased the office building for 99 years, relieved Kushner Cos. of $1.1 billion in debt due this year. That liability had been hanging over the firm and had raised questions about whether Kushner Cos. had the means to transact any large deals. ... The acquisition of more than 6,000 rental apartments in Maryland and Virginia from the private-equity firm Lone Star Funds is the clearest sign yet that Kushner Cos. is re-emerging after that period of uncertainty.
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Executives also have said the company has remained financially healthy even when it faced the uncertainty of the 666 Fifth Ave. debt obligation. ... The losses Kushner Cos. faced represented "a small piece" of the family's net worth, said Laurent Morali, president of Kushner Cos. "Even in the worst case scenario, it would not have been pleasant, but it would not have been a financial disaster by any stretch of the imagination."
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Mr. Morali said Kushner Cos. plans to borrow about 70% of the cost of the Lone Star portfolio. He said the firm was running a competitive process to choose a lender.
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Write to Peter Grant at peter.grant@wsj.com
Read more: https://www.wsj.com/articles/kushner-cos-pays-1-1-billion-for-suburban-apartment-portfolio-11550843211
David Fahrenthold Retweeted
https://twitter.com/Fahrenthold
Oh nothing, just Jared Kushner's family seeking $800 million in bank financing.
Link to tweet
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Hat tip, Joe.My.God (https://www.joemygod.com/2019/02/kushner-cos-buys-apartments-group-for-1-1-billion/) for pointing this tweet out:
1. Jared Kushner's family business is paying $1.1 billion for a portfolio of apartments
2. It plans to borrow money for about 70% of that payment
This sounds like a familiar story...
Link to tweet
sandensea
(21,667 posts)Best gummint money can buy.
PeeJ52
(1,588 posts)amazing turnaround... financial wizards!!!
okaawhatever
(9,462 posts)Jared will find a lender on this one, what with one of the aforementioned countries guaranteeing the debt.
PSPS
(13,614 posts)yaesu
(8,020 posts)as long as you are well connected, above the law & backed by the GOP.
Grasswire2
(13,571 posts)sarcasmo
(23,968 posts)Bengus81
(6,932 posts)Borrowing $800M or so,the interest would be unreal per year. That's $133,333 in borrowed money PER apt then you can pile interest on top of that.
TexasBushwhacker
(20,214 posts)Not exactly high end property for Virginia and Maryland.