Jared Kushner's Family is Screwed, And It's All Boy Wonder's Fault

[KelleyKramer]

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

https://www.vanityfair.com/news/2017/10/jared-kushners-family-is-screwed-and-its-all-boy-wonders-fault?



In Trump’s 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 government’s I.T. infrastructure, and “reinvent the entire government.” Given his track record, however, it’s unclear whether Kushner is even qualified to work as a White House intern—his only two professional achievements of note have been buying and running a newspaper into the ground and running his family’s 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 money—including 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 Korea’s sovereign-wealth fund, to China’s Anbang Insurance Group, but because, according to a new report from Bloomberg, even the family’s 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 hadn’t stood in its way. Putting an end to the Kushner effort—to salvage their overpriced investment by turning it into a Midtown jewel with expensive condos, a hotel and five-floor mall—could 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 Roth’s thinking. That means returning to the negotiating table with lenders—a 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 he’s sending a message to anyone who might still be interested in the Kushners’ plan to “back off.” As Bloomberg notes, while “the success of Trump’s 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.


.

[DetlefK]

1. Because people who buy expensive condos want to live in a hotel/mall.

Money on that level is used to buy EXCLUSIVITIY. There's nothing exclusive about living in a building where thousands of people stream through every day.

[stevenleser]

3. You would think so. But there are numerous examples in NYC and other cities

Of that exact thing. In fact many Trump buildings are exactly what Kushner is trying to replicate. Part expensive Hotel, part mall, part expensive condo.

They achieve some measure of exclusivity by having private elevators for the condo sections of the building. Those elevators are invariably behind electronically locked doors with a doorman in front of them.

[safeinOhio]

2. Real estate development is really

real estate gambling.


time to pay for those chips.

[Achilleaze]

4. It sucks to be a republican fast-buck sleazeball TreasonWeasel

bigly

[no_hypocrisy]

5. And the question is . . . . .

whether Ivanka could love a poor man. Or her father will allow her to continue to be married to one.

[JI7]

11. I think both married each other thinking the other had more than they actually do

[ProfessorGAC]

15. I'm Going With Your Assessment

I think both these families conflate asset base with net worth. I think there is a LOT more leverage than is actually disclosed.

[whopis01]

6. If anyone related to Obama

was planning a building at 666 Fifth Avenue designed by someone with a name like Hadid, there would be right wingers convinced that this was proof he was the antichrist.

[Scarsdale]

9. Isn't THAT the truth?

Or even someone named "Clinton". Of course, it helps to have an (R) behind your name!! So Jared is finding out the hard way that marrying into the tRump family is not a "good thing"?

[KelleyKramer]

13. Oh yeah, Alex Jones would be all over that!

Obama or Clinton and 666 ... are you kidding?!

Alex Jones, Drudge and Hannity would all be in meltdown mode

[Soxfan58]

7. Instant Karma

Going to get you!

[Sancho]

8. If tRump lifts the sanctions, Russia will buy babyface's building...

and the price won't matter.

[Raster]

12. Ding! I think that was a major reason for Jar-Jar actively pushing for a tRump* pResidency...

...country be damned, it's all about saving Kushner financial butt.

[OregonBlue]

14. I never thought about that but I'm sure you are correct.

[Sam McGee]

10. Well, am I ever heartbroken