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Kushner Cos. signs 99-year lease deal at money-losing tower

August 4, 2018

NEW YORK (AP) — The real estate company run by White House adviser Jared Kushner’s family has signed a deal to lease the office space at the money-losing Manhattan skyscraper that serves as the company’s headquarters.

The Canadian firm Brookfield Asset Management announced Friday it had signed a 99-year lease at 666 Fifth Avenue. Financial terms were not disclosed.

The deal eases the pressure on Kushner Cos., the real estate firm run by Jared Kushner’s father, Charles. The building has been losing money since Jared Kushner bought it for a record $1.8 billion in 2007. About a third of the office space is empty and a $1.2 billion mortgage is coming due early next year.

Representatives for Kushner Cos. did not immediately respond to an email seeking comment.

Jared Kushner sold his personal interest in 666 Fifth Avenue before joining the White House as a senior adviser to Republican President Donald Trump, his father-in-law.

Kushner Cos. had sought financing for the building from a Chinese insurer early last year, drawing criticism from ethics experts who worried the Chinese could use any deal as leverage with the Trump administration. The Kushners also sought money from a South Korean government fund, a French billionaire and a Saudi investor.

Brookfield, which manages commercial real estate projects around the world, said in a statement it plans a major redevelopment at the 1.5 million-square-foot (139,354-square-meter) property.

Ric Clark, senior managing partner and chairman of Brookfield Property Group, said that given 666 Fifth Avenue’s prime midtown location, transportation access and “unrefined physical characteristics,” it has the potential to be one of New York City’s “most iconic and successful office properties.”

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