Anbang to buy stake in Kushner’s 666 Fifth, valuing tower at $2.85B
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Anbang Insurance Group TRData LogoTINY is buying a stake in Kushner Companies and Vornado Realty Trust’s 666 Fifth Avenue in a deal that values the office tower at $2.85 billion. The Chinese insurer is also seeking a $4 billion construction loan to turn the building’s top floors into luxury condominiums, according to Bloomberg. That loan, if received, would be the largest-ever construction loan for a single property in New York.
Documents sent out to prospective investors claim the finished building will be worth $7.2 billion, according to Bloomberg. It’s not clear how Kushner Companies arrived at that figure – the GM Building, long considered the most valuable office tower in the U.S., is valued at just $3.4 billion.
“Kushner Companies is in active discussions around 666 5th Avenue, and nothing has been finalized,” a Kushner spokesperson told The Real Deal.
Kushner Companies will keep a 20-percent stake in the 41-story, 1.5 million-square-foot property and get $400 million in cash from Anbang. Vornado, which bought a 49.5-percent stake in the then-distressed office component in 2011 for $85 million and took over the tower’s retail space a year later, will sell its stake for a ten-fold profit in the office component and a doubling of its investment in the retail, according to Bloomberg. Anbang and Kushner are seeking for further equity partners to pump another $100 million into the new partnership.