Kushner Cos. hemorrhaging money at NYCs 666 5th Avenue because of his relationship to Trump: rep

[riversedge]

Source: raw story



13 Sep 2017 at 22:32 ET






.............................Now, the Washington Post reports, more than a quarter of the building’s offices are empty — all thanks to his relationship to the president.

According to the Post, multiple foreign investors Kushner and his associates were courting pulled out due to fears of conflicts of interest, leaving the midtown Manhattan monstrosity — and the family business Kushner left for the White House — high and dry.

“With one-fourth of [the building’s] offices empty, lease revenue does not cover monthly interest payments, according to lending documents,” the Post report. “A $1.2 billion mortgage, with escalating interest rates, comes due in 18 months. A ratings agency has classified a $115 million portion of the loan as ‘troubled,’ and company officials decline to say whether it will be fully repaid.”

As the Post notes, occupancy at 666 Fifth Ave. has steadily declined since Kushner and his father Charles bought the building for $1.8 billion in 2007 (the year before the stock market crashed). It now is only 70 percent full, and many of its main tenants, including Citibank and the Phillips Nizer law firm, are all but vacating the property..........................................................................

Read more:

Link to tweet

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As Trump said---too bad.





666 Fifth Avenue in Manhattan (left, image via Twitter) and Trump's son-in-law and adviser Jared Kushner (right, via screengrab).

[yallerdawg]

1. These family financial travails...

should fold up the Trump presidency faster than anything else!

"When you dance with the devil, there's hell to pay!"

[Alice11111]

20. Kushner better save some of that money for the many criminal lawyers he will be needing

[FakeNoose]

59. Watch for Trump to buy this building

He'll find some way to make the US government bail this thing out of debt.

Maybe he'll make it his summer white house or something.
'Course he'll leave it in his will to Ivanka and Jared because she's his favorite.

Just sayin'

[zentrum]

2. Blights in every

.....sense of the word.

[Bradshaw3]

3. Enjoying me some schadenfreude

[Purveyor]

4. 666? I wouldn't even walk into such a place as I'm way superstitious. I even refused to by a house

in Houston that otherwise I loved because the sum of the address equaled 13. (5602)

Just me, of course.

[MLAA]

9. I've pushed my own luck far enough

Spent a few years in Shanghai where I worked on the 13th floor (unlucky in the US) and lived on the 4th floor (inauspicious in China). So from now on, I'm being very careful 😄

[Honeycombe8]

13. That's true. 666? The mark of the devil? What were they thinking?

I'm sure they could've gotten the city to change the address by one number.

[Eyeball_Kid]

17. It's interesting how well false myths become a kind of truth.

Biblical researchers who studied references to the infamous number determined that early translations use different numbers as the mark of the beast. But 666 seems to have caught on, probably because the repetition of numbers is minimally hypnotic-- it has a quality that other combinations of numbers don't have, and can lend itself to a light trance that makes it somewhat mystifying.

[JonLP24]

57. I thought 666 was supposed to be nero (can't capitalize n)

But I don't know my bible very well.

[Rhiannon12866]

22. Don't they watch TV? "666 Park Avenue" was an ABC show not long ago

It was about a building in New York City with that number - a young couple hired to manage the building confront terrifying evil supernatural forces.

http://www.imdb.com/title/tt2197797/

[smirkymonkey]

29. I loved that show!

I was so bummed out when they took it off the air suddenly. It was such a refreshing change from the usual bullshit.

[Rhiannon12866]

30. I liked it too, I caught it in the beginning, but then I lost track of it

That must have been when they took it off the air. I really wanted to know what happened!

[smirkymonkey]

31. I know! It was such a cliffhanger and then they just discontinued

it with no explanation. So disappointing!

[Rhiannon12866]

32. They did the same thing with Joan of Arcadia, another one I liked

They had what was supposed to be a real cliffhanger and then the show never came back. And the theme was somewhat similar, good vs evil. I can't help but wonder if there are unaired episodes of "666 Park Avenue" since it disappeared so abruptly. Often when that happens, a cable channel will pick them up and show the entire series.

[thesquanderer]

38. I won't watch a serialized show until it's over and I know there's an ending! nt

[PJMcK]

40. Me, too

Not only do I want to know there's an ending but that it'll be worth the time to watch.

"Lost" lost me a couple of episodes into its second season because they never gave a pay-off to the weirdness. Instead it just got weirder and when the show ended, it turned out everyone was already dead... or something. I recall a similar reaction to the original "Twin Peaks." I hate the "and then I woke up" kind of story telling.

The other reasons I wait are I hate commercials and I won't live my life around the TV schedule. Add the fact that I'm impatient and can't wait a week or all summer to see the next episode. So, I wait for the show to be on Netflix or the like. Then I can binge watch till 4:00 in the morning!

[thesquanderer]

47. Same problem with Battlestar Gallactica

re: "Not only do I want to know there's an ending but that it'll be worth the time to watch."

I watched BSG to the end, and was really disappointed with the ending. That's when I swore off such things and made a similar decision to yours.

It's not so bad if many/most of the individual episodes are really strong stories by themselves, even if the ultimate payoff to the series isn't so good. But when the vast majority of the episodes do little except march you further toward the payoff, that payoff had better be spectacular!

[rickford66]

34. I think The Kush actually went out of his way to get that address.

I read here on DU quite a while ago that the actual address wasn't 666 and he diddled with the entrance or something to get it addressed at 666. Pretty sure I read it here.

[leftynyc]

36. Nope

It's always been 666 Fifth Avenue. That tale probably came from someone who thought the Jewish man was trying to screw with Christians.

[rickford66]

37. I read the tale here on DU.

It should have been disproved then. What am I supposed to believe now ?

[snooper2]

45. Well, what you should believe is that MSAG does exist and companies pay a lot of money for updates

http://www.msag.com/

[rickford66]

53. What does this link have to do with my comments.

I was making light of referring to a post that nobody refuted, so I thought there might have been some truth to it. What am I to believe is just a general reference to everything on the internets. Sorry for any misunderstanding.

[snooper2]

55. my response was that you should believe that people can't "diddle" to get an address changed :)

[rickford66]

58. I realize that, but ...

the post I originally referred to explained how he changed which entrance to the building would be considered the accepted address. It seemed reasonable. I live in a rural area. If I move my mailbox 60 feet, I could change my address. It's not an easy thing, but if I really was determined, I could. That's why the post seemed reasonable and no one here, as is usual, jumped on it. So, bottom line, I fell for a fake post. On another note, how come the right wing fundies aren't all over his 666 address ?

[leftynyc]

35. Your point is a good one, however,

Changing it by one number would have put it on the other side of the street (evens on west side of 5th, odds on east side of 5th). I went to a cocktail party at the 666 building years ago and the rooftop views are wonderful. I've lived in apartments numbered 13, have black cats. Weirdly, the only thing I'm superstitious about it sports.

[PJMcK]

41. Well, the city could have approved the address as 668 or 664

Then it would have stayed on the west side of Fifth Avenue.

[leftynyc]

42. NYC doesn't care about

taboos. Or they wouldn't have a 13th street, they wouldn't have 13th floor on elevators. Anyone asking for a change because their religion makes them afraid of a number would have only succeeded in getting laughed at.

[PJMcK]

43. Yes and no

Eric de Grasse Tyson makes an excellent point about many people's fear of the number 13:

Whoever lays out the seats on Continental Airlines seems to suffer from Medieval fears of the number 13. I have yet to see a Row 13 on any flight I have taken with them. The rows simply go from 12 to 14. How about buildings? Seventy percent of all high rises along a three mile stretch of Broadway in Manhattan have no thirteenth floor. While I have not compiled detailed statistics for everywhere else in the nation, my experience walking in and out of buildings tells me it's more than half.

There's more at this link:

http://www.haydenplanetarium.org/tyson/read/2001/12/01/fear-of-numbers

Personally, I'm not superstitious about numbers. If I were renting or buy-in space in a building and the prices were lower on the 13th floor, I'd probably consider that space!

[leftynyc]

46. I would DEFINITELY TAKE that space

Cheaper because of a moronic taboo? As I stated upthread, I lived in apartment #13 in college....and adopted a black cat.

[PJMcK]

48. I bet you step on cracks in the sidewalk, too! (n/t)

[leftynyc]

51. I have no idea

I don't look down while I'm walking so I suppose I do.

[snooper2]

44. ROFLMFAO

Thanks, needed an early morning laugh

[3catwoman3]

5. I hope the companies...

...exsanguinate.

[SHRED]

6. Oops

LMAO

[pressbox69]

7. AKA

The Devils Tower.

[dalton99a]

15. .

[BigmanPigman]

8. It is Hillary's or Obama's fault of course.

It couldn't happen to a nicer guy. SAD!

[Marie Marie]

10. Ivanka better start selling a whole lot more purses.

[brush]

27. trump will come to the rescue and tell him to file for bankruptcy just like dear old dad-in-law.

[Hassin Bin Sober]

52. Or he can move in with his secret service contingent.

Maybe install a putting green on the roof and set up a golf cart rental contract for the Secret Service.

[brush]

60. Yeah, he'd better do something or Ivanka will dump his broke ass.

[Honeycombe8]

11. Geez, I hope he doesn't have to go on Medicaid. Seriously, what does leasing office space

have to do with a conflict of interest? They were just leasing a space. Is Kushner THAT much a pariah that everyone wants to get far away? Or do they think maybe the company will be in trouble if Kushner is prosecuted, which endangers the building and their lease? It's a big, expensive thing for a business to change office buildings.

[karynnj]

24. Many long stories out there

Kushner grossly overpaid AND bought shortly before the financial collapse. On top of that, the area is not as hot as it was and the spaces in the 1957 skyscraper are not as nice as many alternatives at similar prices.

Apparently their recent plan is to do a huge renovation making it twice as high ... but that needs a huge amount of investment.

You could say Jared's big deal has some problems and could bring down the whole company. Now think his father in law put him in charge of many many things.

[Scarsdale]

33. So, Jared is not

such a "smart kid" as tRump said he is?? Wow. Imagine that, tRump exaggerated. Ivanka can't help, she is busy interrupting daddy's meetings before anyone asks serious questions of him.

[Hieronymus]

12. Good

[FormerOstrich]

14. I've been reading about poor poor

Jared and his troubles. The articles all make it sound as if his decision to become involved with the campaign/administration is the reason the investment is going south. However, I think it seems as if he made one hell of a bad decision to start with. I don't think he would be in a better position if he wasn't involved.

Plus, most of the articles say he sold his share to his family. Nice family to pay him to hang the albatross around their neck. Or at least one would assume "selling" your interest meant obtaining something of value (e.g. money) in exchange.

I keep waiting for the Jared bailout because obviously he deserves to be saved given all his benevolence and self-sacrifice for the good of country.

[SergeStorms]

18. Of course....

after solving the Middle East crisis, the opioid epidemic, Veteran's issues, "American Innovation" (whatever the hell that means) and the host of other "busy work" Trump put his son-in-law in charge of, keeping that albatross at 666 Fifth Avenue full of paying clients should be a walk in the park, right?

Poor Jared. He thought marrying into the Trump family was a solid financial move, and Ivanka thought she was getting the next "Golden Child" of real estate developers (and even learned how to be Jewish!) . Looks like these rich folks don't have any better luck at match-making than any other poor schmuck in the dating wilderness. Oh, they won't be moving into a trailer park anytime soon, and if they sold one painting from their art collection it would keep a normal American family of four in the lap of luxury for a decade or so, but still.......you really have to feel sorry for them, right? WRONG I hope they're down in the Bowery standing in line at a soup kitchen soon. But that will never happen. The rich always take care of each other.

[keithbvadu2]

28. "after solving..."

Yep!

Jared's been a busy boy.

Put all those successes in his resume.

[wiggs]

50. Agree. Blaming financial trouble on his father in law's presidency is setting the stage for

some sort of government assistance/bail-out.

[not fooled]

16. Just karma for making American an international laughingstock

[link:|]


Oh, and jarhead is supposed to be capable of doing everything from solving intractable problems in the Middle East to "reorganizing" government. Hell, his father (pre-prison stint) had to buy his way into Harvard.

[Marcuse]

19. Logical. Why would lobbyists bother to court Jared..

when they can take their emoluments directly to the President?

[MrScorpio]

21. Poor fellah

[eezapata]

23. looks like a short sale waiting to happen

short sale????

[Angry Dragon]

25. GOOD.............when you own the Devil's House you have to pay the price sooner or later

I vote for sooner

[Achilleaze]

26. Beastly for the republican TreasonWeaswel

Lock him up.

[thesquanderer]

39. A future White House news release...

"Since public service should not endanger personal wealth, Jared Kushner will be leaving his White House post so as to properly attend to his own financial matters.

As a result, Middle East peace has been cancelled."

[hatrack]

49. I could read that headline over and over and over and over and over . . .

And still enjoy it.

[vkkv]

54. Kushners China Deal Flop Was Part of Much Bigger Hunt for Cash ie: 1.1 BILLION IN DEBT

(Long and involved but worth the read :https://www.bloomberg.com/graphics/2017-kushners-china-deal-flop-was-part-of-much-bigger-hunt-for-cash/)

Kushners’ China Deal Flop Was Part of Much Bigger Hunt for Cash

Jared Kushner, Donald Trump’s son-in-law and top adviser, wakes up each morning to a growing problem that will not go away. His family’s real estate business, Kushner Cos., owes hundreds of millions of dollars on a 41-story office building on Fifth Avenue. It has failed to secure foreign investors, despite an extensive search, and its resources are more limited than generally understood. As a result, the company faces significant challenges.

The troubles caused by 666 Fifth have their origins in the overheated moment of its purchase. On Thanksgiving of 2006, Charlie Kushner made clear he wanted all employees in the office the next day. Tishman Speyer Properties, a real estate company with a New York pedigree his own company lacked, was looking to sell an office tower in midtown Manhattan, and Kushner wanted it. Tishman was demanding that the deal be done fast. The financing had to be put together by Sunday.

As the building’s fate became increasingly bleak, the family, rather than forfeit, decided to go big. Their plan was to raze the structure and replace it with a glimmering Zaha Hadid-designed tower of massive proportions. The scale of the plan stirred the imagination, but the costs were astronomical because they involved repurchasing the property rights they’d sold to keep the original building afloat. That alone would require more than $1 billion. The elaborate renderings of the reconfigured building promised a kind of Time Warner Center on steroids: more than 80 stories with five levels of retail, a hotel and record-breaking expensive luxury condos on top.

For all its inspiring visuals, investors who reviewed the early version of the Kushners’ pitch book noticed a conspicuous omission: numbers. The company circulated a revised pitch, complete with financials, and the scale of the debt and risk involved were jarring. With a $4 billion construction loan and a business model that assumed the condos would sell at the aggressive price of $9,000 per square foot, it was similar to the leap of faith the Kushners had taken by overpaying for the original building a decade earlier, just before the boom went bust. A simple downturn in high-end New York real estate and the colossal new building would be in a hole of titanic proportions.

In retrospect, it would be difficult to imagine a worse time for the Kushners to have entered Manhattan real estate. Pension funds, insurers and other blue-chip firms wanted in on a market that many believed would climb forever, and landlords were loath to sell. The combination of new demand and limited supply created frenzy over each transaction, doubling prices.

“If that building was beginning to look obsolete at the time of purchase, it is totally obsolete now,” says Jesse Keenan, a Harvard lecturer on architecture who wrote a 2013 report on the building for Kushner Cos. He notes that Manhattan is in the midst of its largest office-construction boom since the 1980s. The most prestigious occupants—hedge funds, private equity and law firms—are moving west to new buildings, shifting the center of gravity away from the Kushners.

Even after all of these deals, the Kushners still haven’t touched the $1.1B principal (still owed and due in 2019).


Federal investigators know that Kushner met with then-Russian Ambassador Sergey Kislyak in Trump Tower last December and later met with Sergey Gorkov, head of the Kremlin-controlled VEB bank in two meetings that he didn’t, at first, disclose publicly or on his application for his national-security clearance. After those meetings became public, Kushner and the White House said the contacts were made in his role as a Trump adviser and didn’t involve discussion of his family business. But VEB and a spokesman for Russian President Vladimir Putin described the meetings quite differently, noted Adam Schiff of California, the top Democrat on the House Intelligence Committee. They said that Kushner was there in his capacity as head of his family’s real estate business. Investigators say they are studying those accounts with keen interest.

“I think it is part of a pattern of outreach to Russian financial interests, which are essentially Vladimir Putin and his oligarch circle, by Trump family members,” said Senator Richard Blumenthal of Connecticut, a Democrat on the Senate Judiciary Committee. “The financial dealings are important because we know that the Russian playbook is to engage and compromise foreign leaders.” He added, “Whether this meeting and contact are significant remains to be understood.” —With assistance from Billy House and Steven T. Dennis.

[Gothmog]

56. Boo Hoo