hear Kushner playing key role in setting up Xi-Obama Mar A Lago meet. So what is the status of the Kushner-Anbang deal? News soon?
— Bill Bishop (@niubi) March 13, 2017
zerohedge.com / by Tyler Durden / Mar 13, 2017 5:25 PM
666 5th Avenue, ironically, has been a curse of Jared Kushner ever since he purchased the tower for a then-record $1.8 billion in 2007. It was supposed to be a signature move that signaled Kushner’s intention to expand beyond his family’s extensive holdings in suburban apartments to more prestigious urban properties in Manhattan.
Unfortunately, Kushner’s market timing couldn’t have been worse with the ‘great recession’ paralyzing the commercial real estate market just months after his trophy purchase. Four years later, with the property on the verge of insolvency, Kushner was forced to sell a 49.5% stake in the skyscraper to Vornado for an $80 million capital injection. Voranado later invested even more in the tower in 2012, purchasing the retail spaces at the building’s base from Kushner and others for $707 million.
Now, some 10 years after the original investment, the Kushner family looks set to receive a $400 million windfall from an unlikely, or perhaps not so unlikely depending on who you ask, new Chinese partner, Anbang Insurance Group. Per Bloomberg, the potential deal is raising some eyebrows in Washington DC due to, among other things, Anbang’s murky links to the Chinese power structure which raised national security concerns over its previous U.S. investments as well as some favorable debt relief terms contemplated in the transaction.