At Kushners' Manhattan Tower, Debt Payments IncreaseBy
Losses widened at the Manhattan office tower co-owned by the family of Jared Kushner, President Donald Trump’s son-in-law, as debt payments increased in 2016, according to documents filed by the managers of the loans.
At 666 Fifth Ave., losses totaled $14.5 million after accounting for loan payments, from about $10 million in 2015, figures filed by managers of the loans show. Net operating income for the period grew 2.7 percent from the prior year to $41.3 million, while debt payments rose 11 percent to $55.8 million. Occupancy at the tower jumped to 80 percent at the end of 2016, a gain from 70 percent in September, the documents show.
Repayment terms for more than $1.2 billion of debt on the Midtown property are growing more punitive as a 2019 due date draws near, Bloomberg reported last month. Kushner, now a senior adviser to the president, broke price records when he purchased 666 Fifth for his family firm, Kushner Cos., in 2007.
Kushner has divested his interest in the tower to family to prevent conflicts of interest with his government role. His father, Charles Kushner, has searched for partners to convert it into a luxury residential property. China’s Anbang Insurance Group Co. had been in advanced talks to team up on a redevelopment of the building. Those discussions ended in late March.
A spokesman for Kushner Cos. said the firm is in active, advanced discussions on the building but declined to comment on the financials. A representative for Vornado Realty Trust, which owns 49.5 percent of the building’s office space, didn’t immediately respond to a request for comment. Vornado became a partner in the building when it helped refinance the property’s debt in 2011.
— With assistance by David M Levitt