TRD talks 666 Fifth/Anbang deal with WNYC

New York /
Mar.March 24, 2017 09:31 AM

Anbang Insurance Group’s rumored investment in Kushner Companies’ TRData LogoTINY 666 Fifth Avenue is far from a done deal, and the astronomical numbers — a $4 billion construction loan, for one — have flummoxed the industry.

The Real Deal’s Hiten Samtani, joined by Bloomberg’s David Kocieniewski, weighed in on the fuzzy numbers of the deal and the likelihood of it closing during a segment on WNYC’s “Money Talking” on Friday.

“They’re still losing money,” Samtani said, of the Kushners. “They need to bring in another parter. The question is what numbers are they bringing the parters in.”

Last week, investor documents cited by Bloomberg valued the property at $7.2 billion after an Anbang-led redevelopment. But that number could be as high as $12 billion, according to a Wall Street Journal report, which described Kushner’s vision for a massive redevelopment that includes adding 40 stories to a Zaha Hadid-designed tower, while also transforming the retail space and creating luxury condos.

In both scenarios, the numbers are hard to figure, according to TRD’s analysis. “You’re just jumping into numbers that we’ve never fathomed in New York City real estate,” Samtani said. For the math to work, under even the $7 billion scenario, the condos would have to sell north of $9,000 per square foot, an enormous premium.

Though Senior White House Adviser Jared Kushner has resigned from Kushner Companies, a successful deal with Anbang at 666 Fifth would “open doors for conflicts of interest,” Kocieniewski added. — E.B. Solomont


Related Articles

arrow_forward_ios
Durst Organization president Jonathan Durst and 1155 Sixth Avenue (Durst, Google Maps)
Jenner & Block cuts footprint, takes 67K sf at Durst’s 1155 Sixth Avenue
Jenner & Block cuts footprint, takes 67K sf at Durst’s 1155 Sixth Avenue
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
Innovo lands $155M construction loan for LIC warehouse
Innovo lands $155M construction loan for LIC warehouse
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
Retailer Burlington plans to double store count
Retailer Burlington plans to double store count
Rendering of 300 Huntington Street (Monadnock Development, iStock)
No parking? No problem for Monadnock project in Gowanus
No parking? No problem for Monadnock project in Gowanus
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...