Jared Kushner's family's real estate company, which is struggling to keep afloat with its 666 Fifth Avenue tower in New York City, reportedly has put in a $200 million offer to purchase a famous residential building on Park Avenue.
The company has reportedly issued a "letter of interest" to the co-op board of 417 Park Avenue to buy out all of the 10,000 apartment shares—paying nearly $9 million per apartment, according to the New York Post. The building, located on a wide avenue stretching between Grand Central and Central Park South, is in high demand. The co-op board reported that it had also been approached by William Macklowe Companies.
Kushner Companies was the subject of a federal subpoena in Brooklyn after filing paperwork that falsely claimed the company had no rent-controlled tenants. Prosecutors reportedly are also looking into a $285 million loan the company received from Deutsche Bank right before the 2016 presidential election. No charges have been filed.
Kushner's company has been struggling with its ownership of 666 Fifth Avenue, a landmark building in midtown Manhattan that sits 30 percent vacant and is coming up against a $1.2 billion mortgage in February 2019. The building lost the Kushners $25 million in 2017, according to Bloomberg.
The Park Avenue building received multiple offers over the years but has held out on a sale. Many co-ops require a unanimous vote from shareholders to sell the building, making them particularly difficult acquisitions. But a new zoning law has made the building more valuable than ever, as developers will now be allowed to tear the building down and rebuild a much larger structure in its place, so long as they provide a few public concessions.
Jared Kushner officially left his job as head of Kushner Companies in January 2017 in order to join his father-in-law, President Donald Trump, as a senior adviser, but has only partially divested himself from some of its assets. Jared's father, Charles Kushner, who was sentenced to two years in prison in 2005 for illegal campaign contributions, tax evasion and witness tampering, founded the company and still plays a large role in its trajectory.
The company owns thousands of residential buildings around the tri-state area, as well as New York City's Puck Building and part of Brooklyn's Watchtower building.
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Nicole Goodkind is a political reporter with a focus on Congress. She previously worked as a reporter for Yahoo Finance, ... Read more
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