The Real Deal New York

Kushner plans to lend $200M annually to developers

“We like the opportunity": Laurent Morali
November 30, 2016 09:00AM

Laurent Morali and Jared Kushner (credit: Kushner Companies)

Laurent Morali and Jared Kushner (credit: Kushner Companies)

Jared Kushner’s Kushner Companies plans to lend $200 million annually to developers over the next five years, according to its president Laurent Morali.

“We like the opportunity to deploy our capital in a different place in the capital stack,” Morali said, according to the New York Post.

The Real Deal first reported in May that Kushner Companies TRData LogoTINY had quietly launched a lending arm, and bought the mezzanine debt on JDS Development and the Chetrit Group’s 9 Dekalb Avenue. According to an offering email reviewed by TRD at the time, the firm plans to issue preferred equity, mezzanine debt and senior debt ranging from $20 million to $500 million.

On Monday, TRD reported that Kushner Credit Opportunity Fund is backing Toby Moskovits’ Bushwick mixed-use project 215 Moore Street with a $33 million loan.

Kushner Companies is one of several real estate development firms that have launched lending arms over the past year, in an effort to fill the void left by more cautious banks.

“As a lender, we will look at the sponsor and the borrower and if it’s the type of project we could have done as an owner in a great area, it gives us more optionality,” Morali said.

Morali was tapped as Kushner Companies’ president in June.  [NYP]Konrad Putzier