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

His ownership has drawn criticism over conflicts of interest

New York /
Aug.August 14, 2020 03:00 PM
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
A sign posted outside of a Los Angeles deli (Getty)
LA County will require vaccinations to enter bars, restaurants, businesses
LA County will require vaccinations to enter bars, restaurants, businesses
1101 Flower Street in L.A. with  Tony Lombardo of Lendlease and Zhang Xifang of Oceanwide. Xifang reportedly resigned in July 2021. (Google Maps, Lendlease, Oceanwide)
Contractor bails on Oceanwide’s LA megaproject after scoring $42M judgement
Contractor bails on Oceanwide’s LA megaproject after scoring $42M judgement
The second quarter was the third straight of rising asking rents (Unsplash / Christian Gabele)
Rents rise in Los Angeles as renters scoop up apartments
Rents rise in Los Angeles as renters scoop up apartments
G6 Hospitality CEO Rob Palleschi and Motel 6 San Jose South, one of the largest assets in the portfolio (G6)
Blackstone’s Motel 6 portfolio gets $685M CMBS loan
Blackstone’s Motel 6 portfolio gets $685M CMBS loan
As of early August, the state had distributed around $243 million in rental assistance (Getty)
LA’s rental assistance program relaunches as eviction moratorium ends
LA’s rental assistance program relaunches as eviction moratorium ends
(County of Los Angeles)
Project Roomkey almost certainly saved lives, but fell short of its initial goals
Project Roomkey almost certainly saved lives, but fell short of its initial goals
(Unsplash via Abbie Bernet)
SoCal home prices hit another record in July, but rate of increase slows
SoCal home prices hit another record in July, but rate of increase slows
Developer Geoff Palmer with one of his properties (Getty, G.H. Palmer Associates)
$100M moratorium: That’s how much Geoff Palmer’s firms say LA eviction ban has cost them
$100M moratorium: That’s how much Geoff Palmer’s firms say LA eviction ban has cost them
arrow_forward_ios

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

Loading...