Jared Kushner’s plan to unload Cadre stake shelved by pandemic

His ownership has drawn criticism over conflicts of interest

National /
Aug.August 14, 2020 10:30 AM
Jared Kushner and Cadre CEO Ryan Williams (Getty, iStock)

Jared Kushner and Cadre CEO Ryan Williams (Getty, iStock)

Jared Kushner will have to hold onto his stake in Cadre, after the pandemic hit the startup’s bottom line.

The real estate investment startup, co-founded by CEO Ryan Williams and Jared and Joshua Kushner, was prepared to take over Jared Kushner’s stake in the firm back in February. But in the face of the coronavirus pandemic, the company was forced to cut costs, including the purchase of the White House adviser’s shares, according to Bloomberg.

For years, critics have said Kushner’s investment in Cadre created a potential conflict of interest while working as an adviser to his father-in-law, President Donald Trump. Last year, Kushner asked the White House to determine whether his shares created a potential conflict of interest. Once the sale was deemed necessary, the Office of Government Ethics agreed to let Kushner defer taxes on any gains related to the sale.

Cadre had welcomed the plan to sell Kushner’s stake following a failed investment from SoftBank’s Vision Fund in 2018, two sources told Bloomberg. In the eyes of lenders and partners, the Cadre’s association with Kushner risked the firm’s reputation.

Cadre, headquartered in the Kushner-owned Puck Building, is not yet profitable and completed its last capital raise in 2017.

The company’s CEO wrote in May that “while our current portfolio is holding up well thus far, we are navigating an environment in which real estate transactions have abruptly halted, and we can’t be certain how long this will last.”

Cadre cut a quarter of its staff the same month. Kushner withdrew his government request for a tax break on the sale in June. [Bloomberg] — Orion Jones


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
From left: Flex’s Shragie Lichtenstein; Piñata’s Lily Liu; NestEgg’s Eachan Fletcher; and Till’s David Sullivan
These startups want to guarantee your rent
These startups want to guarantee your rent
Clockwise from top left: Seattle, Boston and New York City (Photo Illustration by Kevin Rebong for The Real Deal)
Real estate prices fell more in Manhattan than anywhere else in 2020
Real estate prices fell more in Manhattan than anywhere else in 2020
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
Extell's CEO Gary Barnett (Central Park Tower)
Barnett secures $380M mezz financing for Central Park Tower
Barnett secures $380M mezz financing for Central Park Tower
AMC Theater CEO Adam Aron (Getty; iStock/Photo Illustration by Kevin Rebong)
Stream this: Cinema chain AMC secures $900M in financing
Stream this: Cinema chain AMC secures $900M in financing
(Photo illustration by The Real Deal)
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...