Jared Kushner's Family Is Screwed, and It's All Boy Wonder's Fault
His big real-estate deal has gone from bad to worse.
by Bess Levin
October 16, 2017 12:20 pm
On the eve of Donald Trumps inauguration, the president-elect made one of his trademark supremely confident, yet supremely ridiculous statements. Speaking at a black-tie dinner, Trump referenced the fact that his son-in-law, Jared Kushner, had been tasked with Middle Eastern diplomacy, telling Ivankas husband, If you cant produce peace in the Middle East, nobody can. All my life Ive been hearing thats the toughest deal to make, but I have a feeling Jared is going to do a great job.
In Trumps eyes, Kushner is a genius businessman who will not only achieve a feat that has escaped U.S. presidents and career diplomats alike, but will also solve the opioid crisis, overhaul the governments I.T. infrastructure, and reinvent the entire government. Given his track record, however, its unclear whether Kushner is even qualified to work as a White House internhis only two professional achievements of note have been buying and running a newspaper into the ground and running his familys real-estate business while his father was in prison, striking a deal that a decade later is still haunting his family.
That deal, of course, was to buy 666 5th Avenue for $1.8 billion on the eve of the financial crisis, which has become an ongoing albatross around Kushner Cos neck. With a 30 percent vacancy rate, an expected loss of $24 million this year, and a $1.2 billion mortgage that is due in February 2019, the Kushners want to raze the property and replace it with a glimmering Zaha Hadid-designed tower that would require borrowing even more moneyincluding a $4 billion construction loan. Their Hail Mary plan is a problem not only because their attempts to raise funds have been rebuffed by everyone from the richest man in France, to Israeli insurance companies and banks, to South Koreas sovereign-wealth fund, to Chinas Anbang Insurance Group, but because, according to a new report from Bloomberg, even the familys partner in the venture is actively trying to shut it down:
Their partner, Vornado Realty Trust, is telling brokers to plan for a much more mundane renovation that would leave the property as an office building, according to three people familiar with the matter. Vornado Chairman and Chief Executive Officer Steve Roth was never enthusiastic about the Kushner plan although until now he hadnt stood in its way. Putting an end to the Kushner effortto salvage their overpriced investment by turning it into a Midtown jewel with expensive condos, a hotel and five-floor mallcould have profound ramifications for the family. Vornado, which owns 49.5 percent of 666 Fifth Ave., is unlikely to invest further in the property without first being reassured of its future, said three people familiar with Roths thinking. That means returning to the negotiating table with lendersa battle that could result in Kushner Cos. losing control of the building, said the people, who asked not to be named discussing private deals.
In fact, Roth, who has said 666 Fifth would be worth a lot more if it was just dirt, is reportedly so disenchanted that hes sending a message to anyone who might still be interested in the Kushners plan to back off. ... As Bloomberg notes, while the success of Trumps campaign drew investors into discussions for 666 5th, raising concerns about potential conflicts of interest, heightened scrutiny plus financial assumptions for the project that most found to be unrealistic have resulted in no one wanting to come near the Kushners tower with a 100-foot pole.
Thomas Hurt
(13,903 posts)DK504
(3,847 posts)BigmanPigman
(51,567 posts)brush
(53,743 posts)which of course he would since he thinks he's a genius himself.
dalton99a
(81,404 posts)DoctorJoJo
(1,134 posts)... that I have tears in my eyes! But after Jarhead solves the Middle-East peace problem, there will be plenty of money coming his way. Meanwhile, I'm guess Ivantya will be off to greener pastures. Why am I smiling?
JoJo
dixiegrrrrl
(60,010 posts)Vornado is "warning others to stay away".
So Boy Wonder ain't gonna be able to get the money he needs to even keep up the payments he owes.
Plus, he has also admitted he needs those loans for personal use; he said that after the Chinese loan looked promising, before it fell thru.
He's broke. He has made several attempts to grift, they have failed. Ivanka's businesses are bottoming out.
And it is mostly Trump's fault, for getting the entire plant against him.
delicious.
Corgigal
(9,291 posts)Secret service gonna be busy if he does.