Brookfield buys out another tenant at 666 Fifth

Brookfield has bought out another tenant at 666 Fifth Avenue in the leadup to its massive renovation of the tower.

The tenant that accepted the $8.5 million buyout is listed as Kadima Realty Associates and was based on the 15th floor, according to property records. The deal marks Brookfield’s fifth buyout of the year in the Midtown property for a total of $22.7 million.

Brookfield purchased a 99-year ground lease from Kushner Companies for the tower in a controversial $1.3 billion deal in 2018. It plans to spend between $300 million and $400 million to renovate and reposition the tower and is trying to empty it out by early next year as part of those renovation efforts. It is also rebranding the infamous property as 660 Fifth Avenue.

Kushner Companies itself is among the tenants leaving 666 Fifth Avenue. It plans to sublease 20,500 square feet of space from the Brazilian bank Itau Unibanco Holding on the top floor of the GM Building.

Brookfield declined to comment on the buyout. However, in a recent interview, Brookfield Property Partners CEO Brian Kingston told The Real Deal he was not concerned that the pandemic and amount of people currently working from home would lead to a widespread decline in demand for office space.

“The idea of working from home full-time does not seem to have much appeal,” he said. “I think we’ll see certain changes in the way that companies utilize their offices, but we don’t see this as an existential threat.”