At 666 Fifth, the devil’s in the details – and the details don’t add up
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The deal that put Jared Kushner TRData LogoTINY on the map also nearly destroyed him. In January 2007, his family firm, Kushner Companies, paid a then-record $1.8 billion for 666 Fifth Avenue, a 41-story office-and-retail tower that was the firm’s first major asset in Manhattan.
“In this particular transaction, we bought really the center of the world,” Kushner told The Real Deal in October 2007, a few months after the purchase. “It doesn’t get any better than that.”
Things went south from there. Critics had slammed the deal for being overleveraged – cash flow at the time of the purchase covered only 65 percent of the debt service – and indeed, Kushner eventually needed to work out a deal with the lenders and bring in Vornado Realty Trust as a partner in order to hold onto the asset.
All through the ordeal, he kept the faith. And if one read Bloomberg’s piece from Monday about an impending deal to bring Chinese insurer Anbang into the tower at terms highly favorable to Kushner Companies, it’d be easy to view the transaction as a home run for the firm and for its partner, Vornado.