The Real Deal New York

Kushner reaches tentative deal with LNR to save 666 Fifth

July 07, 2011 08:39AM

Developer Jared Kushner of Kushner Companies has come to a tentative deal to rescue his investment in 666 Fifth Avenue, which he bought for $1.8 billion in 2007, the Wall Street Journal reported. Kushner reached a possible agreement with LNR Property, a firm specializing in restructuring troubled debt and which oversees the mortgage, that would allow him to retain control of the tower by modifying the terms of the $1.2 billion mortgage tied to the office portion of the building.

As The Real Deal reported last month, Kushner is also turning to office giant Vornado Realty which may buy a 50 percent stake in the building. Vornado would pay an undefined “nine-figure” sum (meaning something between $100 million and $999 million), a source told The Real Deal at the time, for a piece of the building. 

The office portion of 666 Fifth began encountering problems after multiple tenants failed to renew leases after the crash. Kushner funded the shortfall on monthly debt payments out of a reserve account but that account ran dry last month, according to the Journal, leaving Kushner open to default.

Under the terms of the agreement, those monthly debt payments would be lowered, sources said. [WSJ]


3 Responses to “Kushner reaches tentative deal with LNR to save 666 Fifth”

  1. June 29, 2018 at 11:32 am, Did Justice Kennedy’s Son Bail Out Jared Kushner on the 666 Building? said:

    […] than LNR Property, the company whose CEO at the time was Justin Kennedy. According to the NYT and the Real Deal, Mr. Kushner and LNR “reached a possible agreement with LNR Property, a firm specializing in […]

  2. June 30, 2018 at 1:41 pm, Did Justice Kennedy's Son Bail Out Jared Kushner on the 666 Building? – Liberal View News said:

    […] than LNR Property, the company whose CEO at the time was Justin Kennedy. According to the NYT and the Real Deal, Mr. Kushner and LNR “reached a possible agreement with LNR Property, a firm specializing in […]

  3. July 02, 2018 at 11:19 pm, THE “SUPREME COURT” EDITION | Bible Prophecy In The Daily Headlines said:

    […] Justin left Deutsche Bank in 2010, he co-founded LNR Property, a real estate firm that became involved in Kushner Companies’ troubled 666 Fifth Avenue […]