NEW YORK CITY—Kushner Companies received relief for its aluminum-clad albatross of 666 Fifth Ave. Brookfield Asset Management purchased a 99-year, 100% leasehold interest in the 1.5 million square-foot Midtown Manhattan office building. Although the financial terms were not disclosed The New York Times reported Brookfield paid approximately $1.1 billion in upfront rent, and that Charles Kushner, who's now heading the company, negotiated to pay lenders substantially less than what was owed on the building. The paper previously had reported that the property had a $1.4 billion mortgage with accrued interest due in February 2019.
The funds from Brookfield's leasehold would come in handy for another transaction involving the same asset.
Kushner Companies purchased the 49.5% interest in 666 Fifth Ave. from its partner Vornado Realty Trust for approximately $120 million. That deal was originally announced in April with Vornado CEO Steve Roth's letter to shareholders filed with the SEC.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
