NEW YORK CITY—Likely in response to ethics concerns raised by government officials, Kushner Cos. and Anbang Insurance Group Co. have said of their talks to redevelop 666 5th Ave.: “let's call the whole thing off,” according to several published reports. Which party first pulled the plug on the deal was unclear at press time.

The property is valued at $7.5 billion, according to the New York Post. It is co-owned by Kushner Cos., a firm owned by the family of Jared Kushner—President Trump's son-in-law.

Anbang had discussed investing more than $400 million as part of a $4 billion transaction with Kushner Cos. which might have included terms that some real estate experts considered unusually favorable for the Kushners, an earlier report by Bloomberg revealed. A day after that story, Anbang said “there is no investment” in the building, while reportedly not disputing the details of the financing proposal.

Now, says a Kushner spokesperson in a statement, “Kushner Cos. is no longer in discussions with Anbang about 666 5th Ave.'s potential redevelopment and our firms have mutually agreed to end talks regarding the property. Kushner Cos. remains in active, advanced negotiations around 666 5th Avenue with a number of potential investors.”

A spokesman for Anbang declined to comment to Bloomberg. The company, and Kushner, could not be reached at press time.

In the wake of  losing money for three years, Bloomberg reports, the building faces increasing loan fees this year, which might be the reason that the Kushner family was speaking with Anbang about new financing. The proposed deal would have refinanced the debt while forgiving the majority of a second tier of loans known as a “hope note,” where much of the interest on the debt has accrued, according to the refinancing agreement.

Once news emerged about the possible deal, five Democratic legislators raised ethics concerns about the investment, notes Bloomberg.

“This deal, if executed, would appear to present a clear conflict of interest,” the lawmakers wrote to Stefan Passantino, White House deputy counsel. Anbang has “close ties to the Chinese state,” they added.

A transaction would have been Anbang's first in the US this year. The firm is perhaps best known here for its $1.95 billion purchase of the Waldorf Astoria hotel here in 2015. That deal was closely followed by Anbang acquiring a trophy office condo.

NEW YORK CITY—Likely in response to ethics concerns raised by government officials, Kushner Cos. and Anbang Insurance Group Co. have said of their talks to redevelop 666 5th Ave.: “let's call the whole thing off,” according to several published reports. Which party first pulled the plug on the deal was unclear at press time.

The property is valued at $7.5 billion, according to the New York Post. It is co-owned by Kushner Cos., a firm owned by the family of Jared Kushner—President Trump's son-in-law.

Anbang had discussed investing more than $400 million as part of a $4 billion transaction with Kushner Cos. which might have included terms that some real estate experts considered unusually favorable for the Kushners, an earlier report by Bloomberg revealed. A day after that story, Anbang said “there is no investment” in the building, while reportedly not disputing the details of the financing proposal.

Now, says a Kushner spokesperson in a statement, “Kushner Cos. is no longer in discussions with Anbang about 666 5th Ave.'s potential redevelopment and our firms have mutually agreed to end talks regarding the property. Kushner Cos. remains in active, advanced negotiations around 666 5th Avenue with a number of potential investors.”

A spokesman for Anbang declined to comment to Bloomberg. The company, and Kushner, could not be reached at press time.

In the wake of  losing money for three years, Bloomberg reports, the building faces increasing loan fees this year, which might be the reason that the Kushner family was speaking with Anbang about new financing. The proposed deal would have refinanced the debt while forgiving the majority of a second tier of loans known as a “hope note,” where much of the interest on the debt has accrued, according to the refinancing agreement.

Once news emerged about the possible deal, five Democratic legislators raised ethics concerns about the investment, notes Bloomberg.

“This deal, if executed, would appear to present a clear conflict of interest,” the lawmakers wrote to Stefan Passantino, White House deputy counsel. Anbang has “close ties to the Chinese state,” they added.

A transaction would have been Anbang's first in the US this year. The firm is perhaps best known here for its $1.95 billion purchase of the Waldorf Astoria hotel here in 2015. That deal was closely followed by Anbang acquiring a trophy office condo.