"The transfer of the 666 Fifth Ave. loan was done at the request of Kushner Cos., so that it could more easily engage in productive discussions with the lender," according to the spokesman. Bloomberg reported the special servicer as LNR Partners Inc. The debt, which was originated by Barclays Capital, has been on a special servicing watch list since June of 2008, Bloomberg reported.

Currently, Kushner has about $60 million left in a reserve fund to cover debt payments and related expenses, down from $98.2 million in November 2008. Although the 1.5-million-square-foot property was 90% occupied as of this past June, asking rents at 666 Fifth are well below the $110 per square foot originally projected in loan documents, according to Bloomberg.

The Barclays loan was divided and sold as part of three CMBS offerings. In July '08, Kushner sold a 49% stake in the property's retail space for $525 million to a partnership of the Carlyle Group and Crown Acquisitions. Part of that was used to replenish the reserve fund. Later that same month, the Carlton Group arranged a $630-million recapitalization on the property.