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

Aby Rosen's RFR Realty is said to be the buyer

TRD New York /
Feb.February 28, 2018 04:00 PM

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


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

Brookfield's Rick Clark and RFR Realty's Aby Rosen with the Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)

Aby Rosen makes it two Lever House lawsuits in two weeks

Charles Kushner and 229 West 43rd Street (Credit: Getty Images)

Kushner Cos needs loan workout as Times Square tenants tank

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

Aby Rosen and Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)

Aby Rosen says Tod Waterman stabbed him in back on Lever House deal

From left: The Blau and Berg Company's Karine Blanc, TD and Partners' Nana Duncan and Lemor Development Group's Kenneth Morrison (Credit: Blauberg, TD+Partners and Lemor)

Black developers say partnerships aren’t always equal

arrow_forward_ios