Kushner Survives $1.8B Purchase of 666 Fifth Avenue
New York Times reports: In 2007, Kushner Companies purchased 666 Fifth Avenue for a staggering $1.8 billion. The Midtown Manhattan office building was highly leveraged and when the recession hit rents declined and leases were scarce.
In 2010 the loan was transferred to a special servicer, but the lenders agreed to reduce the principal and defer some of the interest. At the same time Kushner's new partner, Vornado Realty Trust, agreed to invest in improving the 30% vacant building resulting in a happier ending for Kushner. In exchange for putting fresh cash into 666 Fifth Avenue, Vornado and Kushner will have the right to recoup this money (with interest, in Vornado’s case) before the subordinate loan is repaid. “By all appearances, it seems like a fantastic deal for Vornado,” said Robert M. White Jr., the chief executive of global commercial property research firm Real Capital Analytics.
Of the $11.8 billion in commercial loans in Manhattan that were classified as troubled since 2008, just $3.4 billion, or 29 percent, remains in distress, said Ben Carlos Thypin, the director of market analysis. About $3.5 billion in loans — covering 14 buildings, including 666 Fifth Avenue, 3 Columbus Circle and 280 Park Avenue — have been restructured.
View the full article on New York Times: Kushner Survives $1.8B Purchase of 666 Fifth Avenue
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Posted by: Nina Turner