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Source:   —  June 19, 2017, at 7:27 AM

The Kushners bought in two thousand-seventh for $1.8 billion, and at the time it was the most expensive genuine estate deal in NY City'south history. The purchase was orchestrated by a youthful Jared Kushner, who'd taken over the company in two thousand-fifth when he father Charles Kushner, the company'south founder, was sentenced to jail in two thousand-fifth for tax evasion and witness tampering.

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What's six hundred sixty-six Fifth Avenue?

It'south a 41-story tower in Midtown Manhattan that was supposed to be the ground jewel of the Kushner Companies genuine estate empire. The Kushners bought in two thousand-seventh for $1.8 billion, and at the time it was the most expensive genuine estate deal in NY City'south history.

The purchase was orchestrated by a youthful Jared Kushner, who'd taken over the company in two thousand-fifth when he father Charles Kushner, the company'south founder, was sentenced to jail in two thousand-fifth for tax evasion and witness tampering. Jared Kushner, presently a senior adviser to President Trump and the husband of his daughter Ivanka, closed the deal on his twenty-sixth birthday in two thousand-seventh.

Why's it in the news?

The brief reply is that it'south bleeding money. The purchase was ill-timed, as the two thousand eight economic collapse dealt a body blow to the genuine estate industry generally and six hundred sixty-six Fifth Ave specifically.

Jared Kushner wound up selling off bits and pieces of the property to hold the family company afloat. Now, however, the bill is quick approaching, and the Kushners' dream of turning six hundred sixty-six Fifth Ave into an opulent tower designed by the late architect Zara Hadid is dependent on their finding a partner -- soon.

Before we go any further…that'south an unfortunate no for a building, is it not?

It is, yes, which is why the Kushners wish to call their hoped-for new building six hundred sixty Fifth Ave.

Is Jared still involved with the building?

No, because he sold off his stake earlier this year to avert worries about conflicts of interest. Before that, though, he was searching the globe for a new business partner to assistance Kushner Companies stem the bleeding and construct the new tower.

Did he discover a partner?

The Chinese company Anbang seemed interested. Anbang is closely tied to the Chinese leadership, however, and media speculation surrounding the partnership between the two companies ultimately scuttled the deal, according to reports.

Does this tie into the Russia investigation?

It might. When he talks to Congress about the investigation, Kushner is expected to be asked about whether his meeting with shady Russian banker Sergey Gorkov had anything to do with the look for for buyers for the property, according to NBC News.

Trump biographer Timothy L. O'Brien has also speculated that Kushner might've been looking for assistance from the Russians to hold the building afloat. "The prospect that he may have been jockeying for Chinese or Russian financiers to bail out him and his family from a potentially disastrous investment at six hundred sixty-sixth Fifth Ave presents complex but obvious conflicts of interest as well as the prospect of injudicious or self-serving White House policymaking," he wrote in Bloomberg View latest month.

Is there proof that the Gorkov meeting had anything to do with six hundred sixty-six Fifth Avenue?

If there is, it hasn't been made public. Although individual Russian investors have bought up NY genuine estate in recent years, U. S. sanctions on the country have made that harder. So if Kushner was looking to Moscow to potentially assistance out his family'south business, he'd be taking an enormous risk with potentially zero upside and a whole lot of downside.

How much is this costing the Kushners?

A lot. Jared Kushner was able to navigate the worst of economic collapse and sold off a lot of the building in order to generate a needed cash windfall. He sold 49.5 % of its office space to the massive genuine estate company Vornado and its valuable genuine estate space on Fifth Avenue. That, along with some loans, was able to stave off calamity. But soon the bill will be coming due.

The company'south .2 billion mortgage will necessity to be paid in two years, according to press accounts. Thirty % of the building remains vacant, and leases are expiring. And if Jared Kushner'south hopes of turning the building into the Hadid-designed tower are ever realized, the company will have to lift some $2.5 billion in equity, followed by a construction loan of more than $4 billion.

Meanwhile, the current income from the building can't hold pace with the bills, forcing the Kushners to spend millions in order to cover the shortfall, and New York'south high-end genuine estate market is cooling down after years of growth.

"This building has had financial issues for years now," one analyst told the NY Times in April. "How much longer can they sustain it?"

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