The Real Deal New York

Kushner-led group buying Invesco out of Dumbo Heights: sources

Trio to own four of the buildings in full after $600M transaction
By Mark Maurer | Twitter_logo_blue copy March 30, 2017 08:28PM

From left: Jared Kushner, Aby Rosen and rendering of Dumbo Heights

In a $600 million deal, Kushner Companies, RFR Realty and LIVWRK are buying out their partner Invesco in Dumbo Heights, The Real Deal has learned.

Sources familiar with the deal, slated to close Friday, said the five-building office-and-retail development was recently appraised at $700 million. The trio are buying the majority of the complex for $600 million from the current partnership, in which Invesco has the dominant equity stake, sources said.

The remaining piece of the complex, an eight-story, 204,000-square-foot property at 175 Pearl, is being acquired by Normandy Real Estate Partners for $100 million, as TRD reported earlier Thursday.

Proceeds from the sale of a majority stake in 175 Pearl to Normandy, as well as a new Citibank-led loan of north of $400 million, went toward the buyout deal. Both deals are expected to close Friday.

Representatives for Kushner Companies declined to comment.

Upon closing, Kushner, RFR and LIVWRK will own four of the buildings in full and a “single-digit” stake in 175 Pearl, a source familiar with the deal said.

When the quartet of Kushner, RFR, LIVWRK and Invesco acquired the former Jehovah’s Witnesses buildings for $375 million in 2013, Invesco had roughly 90 percent of the equity stake, sources said.

Over time, RFR, Kushner and LIVWRK took bigger positions, but Invesco retained a majority stake, sources said.