Qatari company reportedly close to deal for Kushner’s NYC building

By Scott Deveau, Caleb Melby and David Kocienewski | Bloomberg News

Kushner Cos. is nearing a deal with a unit of Brookfield Asset Management Inc. to salvage its investment in an over-leveraged office tower, according to two people familiar with the talks.

The Qatar Investment Authority, which invests on behalf of Qatar’s government, is the largest owner of the the unit, Brookfield Property Partners LP, according to data compiled by Bloomberg.

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Kushner Cos. had earlier talked with a member of Qatar’s royal family about investing in the building, 666 Fifth Avenue, Bloomberg has previously reported. The family company has been trying for years to find a partner to save its investment in the 41-story building it bought for $1.8 billion in 2006, near the top of the real-estate boom. Recently Kushner Cos. has lost millions a year on the building due to low occupancy and high mortgage interest payments.

The deal would buy out the Kushners’ current partner, Vornado Realty Trust, which owns 49.5 percent of the building’s offices. Vornado would continue to own the building’s lucrative retail spaces. It isn’t immediately clear what would happen to a $1.2 billion mortgage that is due February 2019.

Brookfield would provide the bulk of the new capital to rework the facade and modernize the building, said one of the people, who asked not to be identified because the talks are private. The talks are continuing and exact figures are still under discussion, the person said.

A Brookfield representative declined to comment. Christine Taylor, a spokeswoman for Kushner Cos., didn’t immediately respond to requests for comment. The New York Times reported the talks earlier Thursday.

During the presidential campaign, Jared Kushner and his father, …read more

Source:: The Mercury News

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