The Real Deal New York

Kushner Companies’ 666 Fifth posts worst year since 2011

The property's debt increasingly outweighs its net operating income
April 17, 2018 05:00PM

666 Fifth Avenue and Charles Kushner (Credit: Getty Images)

666 Fifth Avenue and Charles Kushner (Credit: Getty Images)

Kushner Companies’ signature property at 666 Fifth Avenue had a no good, very bad year.

The office tower, which is co-owned by Vornado Realty Trust, lost $25 million in 2017 after accounting for debt payments, Bloomberg reported, citing financial documents shared with investors Tuesday. That loss — the largest since 2011 — is largely due to the fact that the debt service on tower continues to outweigh the building’s net operating income. The interest rate on the property’s $1.2 billion mortgage recently increased to 6.35 percent from 5.5 percent last year.

In 2016, by comparison, the building’s loss was only $14.5 million.

Earlier this month, Vornado announced it had a “handshake” deal to sell its 49 percent stake in 666 Fifth Avenue to Kushner Companies, though whatever equity partners or lenders Kushner is tapping to pull off the purchase are not yet known. The mortgage on the tower comes due in February. [Bloomberg]Will Parker