The Real Deal Chicago

Kushner Cos. selling lone Chicago property

The office tower at 225 West Randolph Street was part of the controversy over loans from Apollo Global Management
October 10, 2018 09:00AM

Charlie and Jared Kushner and 225 West Randolph Street (Credit: Kushner)

Kushner Companies has a deal to sell its lone Chicago property, a Loop office tower, to an Angelo Gordon-led venture.

The price of the deal between the two New York companies for the 30-story building at 225 West Randolph Street is unclear. Kushner wanted $315 million when it put the building on the market in 2014, according to Crain’s. Real Estate Alert was the first to report on the deal.

Kushner paid $276 million for the 853,000-square-foot building in a 2007 sale-leaseback deal with AT&T, whose 670,000-square-foot lease expires at the end of 2022.

Joining Angelo Gordon in the deal are Chicago investor AJ Capital and a New York venture of former Angelo Gordon executive Ryan Klenovich, according to Crain’s.

White House ethics investigators launched a probe after Apollo Global Management refinanced the building with a $184 million loan after an Apollo executive had meetings at the White House with presidential adviser and son-in-law Jared Kushner, part of a larger package of loans from Apollo.

Kushner spokespeople at the time denied any impropriety in the loans. A spokesperson for Kushner did not immediately respond to a request for comment Wednesday.

Angelo Gordon has stakes in several Chicago-area properties, and earlier this year teamed with Chicago-based GlenStar Properties in April to buy the Presidents Plaza office towers near O’Hare Airport for $148 million.

AJ Capital was a joint investor with Shapack Partners in the Soho House property in Fulton Market. [Crain’s] — John O’Brien