The Real Deal New York

TRD talks Kushners, 666 Fifth intrigue
with CNN

April 06, 2017 09:50AM

Is Kushner Companies in trouble over its marquee office tower 666 Fifth Avenue?

The Real Deal ’s Managing Web Editor Hiten Samtani appeared on CNN Wednesday to debate the question. Last month, Anbang Insurance Group backed out of a possible deal to invest in a planned $4 billion condo and retail conversion. Meanwhile, Bloomberg reported that the tower is losing money because of its high vacancy rate and debt load. But Samtani argued that the project is far from doomed — thanks in part to Jared Kushner’s influence in the White House.

“You have someone connected to the President,” he said. “That could bring in lenders, that could bring in a foreign partner that might be interested in getting an audience with Trump.”

Sandler O’Neill analyst Alexander Goldfarb added that New York’s popularity among deep pocketed investors could also help the Kushners. “There’s a lot of money that wants into New York and that will pay prices that some people will view as ‘wow, that’s unreal’,” he said.

This much is clear: 666 Fifth Avenue is still a risky bet for Jared Kushner and the family company he officially left. “If it goes well, he’s dodged a bullet,” Samtani said. “If it doesn’t he might lose a building and it might reflect badly on the family.” [CNN]Konrad Putzier