The Real Deal New York

SL Green, Kushner are selling their Gowanus development site to a familiar face

Aby Rosen's RFR Realty is said to be the buyer
February 28, 2018 04:00PM

175-225 3rd Street, Aby Rosen, Jared Kushner and Brad Lander (Credit: LIVWRK, RFR, Getty Images and Twitter)

SL Green Realty and Kushner Companies has reached a deal to sell their Gowanus development site to Aby Rosen’s RFR Realty, according to a new report.

The two companies bought the 140,000-square-foot parcel at 175-225 3rd Street, across the street from Whole Foods, for $70 million in 2014. One source told Crain’s that RFR is rumored to be paying $120 million. SL Green owns 95 percent of the property and Kushner the small minority stake.

Observers expect the city to rezone Gowanus, potentially making the site a lot more valuable. But Kushner’s ownership stake, and the firm’s ties to the White House, could have complicated matters.

“Voting to take part in enriching the White House senior adviser… That feels ethically tainted in a way I don’t see how I could do and how I could ask my colleagues to do,” local council member Brad Lander said in a November interview with WNYC, referring to Jared Kushner. The City Council tends to defer to the local council member on rezoning decisions, giving Lander significant sway.

Cushman & Wakefield is brokering the deal, sources said.

Rosen, despite being an outspoken critic of President Trump, has been a frequent business partner of Kushner Companies. Alongside LIVWRK, the two companies partnered in 2013 to buy an office complex in Dumbo from the Jehovah’s Witnesses for $375 million.

In September, The Real Deal reported that RFR went it alone to purchase 90 Sands Street, which was part of the six-building portfolio. Kushner exited the deal for 90 Sands prior to closing, as it reportedly worked to free up cash for 666 Fifth Avenue. A Kushner spokesperson at the time said the company made a “strategic decision” to instead focus on 85 Jay Street and 30 Columbia Heights. [Crain’s]Konrad Putzier