SL Green, Kushner are selling their Gowanus development site to a familiar face

Aby Rosen's RFR Realty is said to be the buyer

175-225 3rd Street, Aby Rosen, Jared Kushner and Brad Lander (Credit: LIVWRK, RFR, Getty Images and Twitter)
175-225 3rd Street, Aby Rosen, Jared Kushner and Brad Lander (Credit: LIVWRK, RFR, Getty Images and Twitter)

SL Green Realty and Kushner Companies has reached a deal to sell their Gowanus development site to Aby Rosen’s RFR Realty, according to a new report.

The two companies bought the 140,000-square-foot parcel at 175-225 3rd Street, across the street from Whole Foods, for $70 million in 2014. One source told Crain’s that RFR is rumored to be paying $120 million. SL Green owns 95 percent of the property and Kushner the small minority stake.

Observers expect the city to rezone Gowanus, potentially making the site a lot more valuable. But Kushner’s ownership stake, and the firm’s ties to the White House, could have complicated matters.

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“Voting to take part in enriching the White House senior adviser… That feels ethically tainted in a way I don’t see how I could do and how I could ask my colleagues to do,” local council member Brad Lander said in a November interview with WNYC, referring to Jared Kushner. The City Council tends to defer to the local council member on rezoning decisions, giving Lander significant sway.

Cushman & Wakefield is brokering the deal, sources said.

Rosen, despite being an outspoken critic of President Trump, has been a frequent business partner of Kushner Companies. Alongside LIVWRK, the two companies partnered in 2013 to buy an office complex in Dumbo from the Jehovah’s Witnesses for $375 million.

In September, The Real Deal reported that RFR went it alone to purchase 90 Sands Street, which was part of the six-building portfolio. Kushner exited the deal for 90 Sands prior to closing, as it reportedly worked to free up cash for 666 Fifth Avenue. A Kushner spokesperson at the time said the company made a “strategic decision” to instead focus on 85 Jay Street and 30 Columbia Heights. [Crain’s]Konrad Putzier

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