Kushner Cos. expands apartment holdings in MS, TN, VA for $400M

The real estate firm is still looking for deals in NYC, but says they are hard to come by

National /
Jul.July 06, 2021 10:15 AM
Kushner Companies' Laurent Morali and Charlie Kushner (iStock, Getty)

Kushner Companies’ Laurent Morali and Charlie Kushner (iStock, Getty)

Kushner Companies is going all-in on the Southeast.

The real estate firm has acquired or signed contracts to snap up 2,500 apartments in Mississippi, Tennessee and Virginia in the past month. The overall price was about $400 million, according to Laurent Morali, the president of Kushner Cos., the Wall Street Journal reported.

The company, which once bit off more than it could chew in Midtown by overpaying for a 1950s office building, turned its attention to buying apartments in small to midsize cities — including in the Southeast, where prices are less expensive — last fall.

Its recent deals include the acquisition of 1,200 units in Jackson, Mississippi, for about $160 million. Average rents are $1,000 a month for a two-bedroom apartment and $900 for a one-bedroom, according to Morali.

Morali said Jackson was appealing because of its strong economy.

The firm is looking for deals in New York, but the market has been slow partly because of uncertainty created by the pandemic, according to Morali.

“We are looking for opportunities in New York,” he told the Journal. “It’s just that there are few opportunities.”

The firm notably paid $1.8 billion for dated office building 666 Fifth Avenue in Manhattan in 2007, just prior to the financial crisis. Brookfield acquired a 99-year lease on the property in 2018 in what some saw as a rescue of Kushner.

Kushner Companies is actively acquiring properties in South Florida. The company paid $20.5 million for a slice of an assemblage in Miami’s Edgewater neighborhood in June. In May, the firm won approval to bring a four-tower, mixed-use development to downtown Fort Lauderdale.

Kushner Companies was founded by Charles Kushner, the father of Jared Kushner, Donald Trump’s son-in-law and a senior adviser during his presidency. It is not clear what Jared’s role will be in the company going forward.

The firm and its affiliated companies were under heightened scrutiny during Trump’s tenure in the White House. In April, an administrative law judge found that an apartment management company tied to Kushner violated Maryland consumer protection laws for apartments in Baltimore by taking in debts without the required license, according to the Baltimore Sun. In a New York City case, a September 2020 lawsuit by residential tenants was deemed “politically motivated harassment” by a Kushner lawyer.

[WSJ] — Keith Larsen


Related Articles

arrow_forward_ios
Mayor Bill de Blasio (Getty, iStock)
NYC to require vaccines for indoor dining, gyms and performance venues
NYC to require vaccines for indoor dining, gyms and performance venues
Rendering of 227 West Street with Brookfield's Brian Kingston and Blackstone's Katie Keenan (OMA, Brookfield, Blackstone)
Brookfield lands $500M for next Greenpoint Landing development
Brookfield lands $500M for next Greenpoint Landing development
“Just not right.” Texas sovereign wealth fund official scrutinizes Greenbrook
“Just not right.” Texas sovereign wealth fund official scrutinizes Greenbrook
“Just not right.” Texas sovereign wealth fund official scrutinizes Greenbrook
Family feud for $11M Lundy’s restaurant building boils over
Family feud for $11M Lundy’s restaurant building boils over
Family feud for $11M Lundy’s restaurant building boils over
The rise of e-commerce, fueled by the pandemic, has created unprecedented demand for cardboard-producing facilities. (iStock)
Cardboard demand could fuel an industrial real estate boom
Cardboard demand could fuel an industrial real estate boom
MSCI CEO Henry Fernandez and Real Capital Analytics founder Robert White (MSCI)
MSCI to acquire Real Capital Analytics for $950M
MSCI to acquire Real Capital Analytics for $950M
Donald Trump and the Trump International Hotel & Tower in Chicago (Getty, iStock)
Donald Trump is owed $1M tax refund on Chicago skyscraper
Donald Trump is owed $1M tax refund on Chicago skyscraper
From left: One WTC, Douglas Durst, Donald and Steven Newhouse (iStock, Getty)
Condé Nast pays back rent at One WTC, ending standoff with Durst
Condé Nast pays back rent at One WTC, ending standoff with Durst
arrow_forward_ios

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

Loading...