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Kushner Companies

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This article is about the NYC-based real-estate developer. For the NJ-based real estate developer, see Kushner Real Estate Group. For other companies, see Kushner (disambiguation).

Kushner Companies LLC
Company typePrivate
IndustryReal estate
Founded1985; 39 years ago (1985)
FounderCharles Kushner
Headquarters767 Fifth Avenue,
New York City, New York
,
United States
Key people
ServicesReal estate development
Websitekushner.com

Kushner Companies LLC is an American real estate developer in the New York City metropolitan area.[1] The company's biggest presence is in the New Jersey residential market.

A study published in December 2017 by Bloomberg News indicated that Kushner Companies owned a stake in over 60 buildings in New York City.[2] Major holdings in the city include the Puck Building and the retail space at 229 West 43rd Street, as well as 666 Fifth Avenue until its 2018 sale.[3] The company's headquarters were relocated to the GM Building Manhattan in 2020.[4]

History

In 1985, Charles Kushner founded Kushner Companies along with his father, Joseph Kushner.[5]

In 2005, Charles Kushner was convicted of tax evasion and witness tampering, and served time in federal prison. As a result, he handed over the management of the company to his eldest son, Jared.[6]

Kushner Companies has received multiple loans from Israeli bank, Bank Hapoalim.[7]

The firm "received a roughly $30 million investment from Menora Mivtachim" in 2017.[8] It was spent on "a Maryland development".[9]

In 2017, Nicole Kushner Meyer joined her brother Josh in Kushner Companies, serving as a principal.[10] Meyer was criticized for mentioning her brother's White House position during investor presentations that she gave in China when soliciting $150 million for 1 Journal Square in Jersey City, New Jersey, causing her to cancel the rest of her roadshow appearances.[11] In another dispute involving 1 Journal Square, the company is attempting to get $113,659 from the city to cover legal expenses.[12]

According to an August 2017 article in Bloomberg, the company was facing an increasingly "distressed situation" at the time. Over the previous few years, family members had sought substantial overseas investment to deal with "troubled finances".[13]

In the 2010s, developers such as the Kushner Companies widely used the EB-5 visa to fuel a "high-end US residential boom".[14] In May 2017, Trump renewed the visa program in his first major piece of legislation.[15] That September, the United States Attorney's office subpoenaed the Kushner Companies over the use of the EB-5 visa program to fund developments.[16]

In December 2017, the United States District Court for the Eastern District of New York subpoenaed Deutsche Bank records pertaining to Kushner Companies.[17] The New York Times reported in May 2019 that anti-money laundering specialists in the bank detected what appeared to be suspicious transactions involving entities controlled by Donald Trump and Jared Kushner, for which they recommended filing suspicious activity reports with the Financial Crimes Enforcement Network of the Treasury Department, but bank executives rejected the recommendations. One specialist noted money moving from Kushner Companies to Russian individuals and flagged it in part because of the bank's previous involvement in a Russian money laundering scheme.[18][19]

In 2020, ProPublica and WNYC reported that Kushner Companies received "a near-record sum" from government-backed lender Freddie Mac. The $786 million in loans helped Kushner Companies purchase thousands of apartments in Maryland and Virginia and appeared to come with "unusually good terms," raising conflict of interest questions due to Jared Kushner's role as Senior Advisor to the President of the United States.[20]

Acquisitions

In 2003, New York University and Kushner Properties announced that the university had signed a 15-year lease for three floors, comprising 75,000 square feet (7,000 m2) of contiguous space, in the historic Puck Building, 295 Lafayette Street in Manhattan's SoHo neighborhood.[21]

In December 2006, the company announced plans to buy 666 Fifth Avenue for $1.8 billion, the biggest deal to date for an individual building in New York City history.[22] In early 2007, Kushner bought the building for US$1.8 billion, the highest price ever paid for a single office building in the United States.[23][24] Four years later, rising debt forced Kushner to hand over 49.5% of the ownership of 666 Fifth Avenue to Vornado. Kushner had planned to demolish the existing structure and build one twice the size; Vornado's Steven Roth stated that this will not happen.[2] The building, which represented significant debt for the company was leased in 2018.[25]

Kushner since shifted focus from his New Jersey real estate operations to the New York market. In July 2007, the Kushner Companies sold 17,500 apartments in the states of New Jersey, Pennsylvania, Delaware, Maryland and New York, valued at $2 billion.[26][27] Before that sale, the Companies had employed approximately 800 people.[23]

In August 2011, representatives from the Kushner Companies made a presentation to the Perth Amboy Redevelopment Agency proposing a scaled-back design concept for the Landings at Harborside, a residential development set to be built along the city's waterfront, and allowing rental housing instead of owner-occupied units as originally planned. The plan, which would have saved two historic Perth Amboy buildings, was endorsed by Mayor Wilda Diaz, quoted as saying, "Too many sites have been torn down. Let's restore them and use them for other purposes." She further said that Kushner sketched a concept for the courthouse that was incorporated into the redesign.[28]

On July 5, 2013, Kushner Companies signed an agreement to purchase a five-building complex in Brooklyn Heights, Brooklyn, formerly used by Jehovah's Witnesses, for $340 million. The building is 95% owned by CIM Group.[29][2]

In 2016, Kushner Companies opened Trump Bay Street, a luxury 53-story apartment tower in Jersey City, New Jersey.[30] The Kushners partnered with a company linked to Beny Steinmetz on the $250 million project, which was financed through a $30 million cash investment by the Kushners and $190 million in loans, including a $140 million construction loan from CIT Group and $50 million of investments from Chinese nationals purchasing EB-5 visas.[30] By June 2017, the building had reached half occupancy and was valued at up to $360 million, leading the Kushners to seek $250 million in refinancing.[30] Jared Kushner retained his interest in the building after becoming senior advisor to President Donald Trump, his father-in-law.[30]

The company also owns properties in Long Branch, New Jersey[31] as well as nearby Monmouth Mall, which Kushner acquired when it fully purchased the non-management joint venture with Vornado Realty Trust that owned the mall.[citation needed]

Controversies

In 2017, Nicole Kushner Meyer joined her brother Josh in Kushner Companies, serving as a principal.[32] Meyer was criticized for mentioning her brother's White House position during investor presentations she gave in China when soliciting $150 million for 1 Journal Square in Jersey City, causing her to cancel the rest of her roadshow appearances.[33] In another dispute involving 1 Journal Square, the company is attempting to get $113,659 from the city to cover legal expenses.[34]

According to Bloomberg, the company is facing[when?] an increasingly "distressed situation". Over the last few years, family members have sought substantial overseas investment to deal with "troubled finances".[35]

In the 2010s, developers such as the Kushner Companies widely used the EB-5 visa to fuel a "high-end US residential boom".[36] In May 2017, Trump renewed the visa program in his first major piece of legislation.[37] That September, the United States Attorney's office subpoenaed the Kushner Companies over the use of the EB-5 visa program to fund developments.[38]

In December 2017, the United States District Court for the Eastern District of New York subpoenaed Deutsche Bank records pertaining to Kushner Companies.[39] The New York Times reported in May 2019 that anti-money laundering specialists in the bank detected what appeared to be suspicious transactions involving entities controlled by Donald Trump and Jared Kushner, for which they recommended filing suspicious activity reports with the Financial Crimes Enforcement Network of the Treasury Department, but bank executives rejected the recommendations. One specialist noted money moving from Kushner Companies to Russian individuals and flagged it in part because of the bank's previous involvement in a Russian money laundering scheme.[40][41]

In 2020, ProPublica and WNYC reported that Kushner Companies received "a near-record sum" from government-backed lender Freddie Mac. The $786 million in loans helped Kushner Companies purchase thousands of apartments in Maryland and Virginia and appeared to come with "unusually good terms," raising conflict of interest questions due to Jared Kushner's role as Senior Advisor to the President of the United States. [42]

See also

References

  1. ^ Becker, Susanne Craig, Jo; Drucker, Jesse (January 7, 2017). "Jared Kushner, a Trump In-Law and Adviser, Chases a Chinese Deal". The New York Times. Archived from the original on April 23, 2017. Retrieved April 24, 2017.{{cite news}}: CS1 maint: multiple names: authors list (link)
  2. ^ a b c "Kushners' New York City Buildings Are Mostly Owned By Others". Bloomberg. December 19, 2017.
  3. ^ Melby, Caleb (December 8, 2020). "Kushner Cos. Spent the Trump Years Unwinding Scion's Costly Bets". Bloomberg.
  4. ^ Rizzi, Nicholas (May 20, 2020). "Kushner Companies Leaving 666 Fifth Avenue for GM Building". Commercial Observer. Retrieved February 3, 2021.
  5. ^ Gabriel Sherman (July 10, 2009). "Can 'Observer' Owner Jared Kushner Carry the Ambition for Himself and His Disgraced Father? - New York Magazine". Nymag. Retrieved November 4, 2021.
  6. ^ York, Byron. "Byron York: The sordid case behind Jared Kushner's grudge against Chris Christie". Archived from the original on August 28, 2017.
  7. ^ Becker, Susanne Craig, Jo; Drucker, Jesse (February 7, 2017). "Jared Kushner, a Trump In-Law and Adviser, Chases a Chinese Deal". The New York Times. Archived from the original on January 7, 2017.{{cite news}}: CS1 maint: multiple names: authors list (link)
  8. ^ Drucker, Jesse (January 7, 2018). "Kushner's Financial Ties to Israel Deepen Even With Mideast Diplomatic Role". The New York Times. Retrieved March 1, 2018. Shortly before, his family real estate company received a roughly $30 million investment from Menora Mivtachim, an insurer that is one of Israel's largest financial institutions, according to a Menora executive.
  9. ^ Helmore, Edward (January 8, 2018). "Jared Kushner's company under renewed scrutiny over Chinese and Israeli deals". The Guardian. Retrieved March 1, 2018. According to the report, the funds were directed into a Maryland development.
  10. ^ Caroline Hallemann (March 21, 2017). "8 Things You Should Know About the Kushner Family: Here's what you need to know about the world of Jared Kushner, Trump's right-hand man". Town and Country Magazine. Archived from the original on June 11, 2017. Retrieved May 7, 2017.
  11. ^ Hernández, Javier C. (May 13, 2017). "Kushner Companies Backs Out of Chinese Investor Events After Furor". The New York Times. p. A16. Archived from the original on June 6, 2017. Retrieved June 8, 2017.
  12. ^ McDonald, Terrence T. (April 3, 2019). "Jersey City, Kushner lawyers wrangle over legal bill". nj.com. Retrieved April 30, 2019.
  13. ^ Kocieniewski, David (August 31, 2017). "Kushners' China Deal Flop Was Part of Much Bigger Hunt for Cash". Bloomberg. Archived from the original on August 31, 2017. Retrieved August 31, 2017.
  14. ^ Edward Helmore (April 7, 2017). "Immigrant investor program under fresh scrutiny as Chinese president visits US: FBI raided Chinese-focused cash-for-residency scheme linked to EB-5 visa that has been used by developers such as Jared Kushner before Trump met Xi Jinping". The Guardian. New York. Archived from the original on May 7, 2017. Retrieved May 7, 2017. FBI raids were focused on the California Investment Immigration Fund, a business allegedly connected to abuses of the controversial EB-5 program
  15. ^ Eric Lipton; Drucker, Jesse (May 9, 2017). "Kushner Family Stands to Gain From Visa Rules in Trump's First Major Law". The New York Times. p. A1. Archived from the original on May 9, 2017. Retrieved June 8, 2017.
  16. ^ Erica Orden, Aruna Viswanatha and Byron Tau (August 2, 2017). "U.S. Attorney Subpoenas Kushner Cos. Over Investment-For-Visa Program". WSJ. Retrieved October 31, 2019.
  17. ^ Protess, Ben; Silver-Greenberg, Jessica; Enrichdec, David (December 22, 2017). "Prosecutors Said to Seek Kushner Records From Deutsche Bank". The New York Times. Retrieved December 25, 2017. In recent weeks, prosecutors from the United States attorney's office in the Eastern District of New York subpoenaed records from Deutsche Bank, the giant German financial institution that has lent hundreds of millions of dollars to the Kushner family real estate business.
  18. ^ Enrich, David (May 19, 2019). "Deutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts". The New York Times.
  19. ^ Mullen, Jethro (January 31, 2017). "Deutsche Bank fined for $10 billion Russian money-laundering scheme". CNNMoney.
  20. ^ Vogell, Heather. "The Kushners' Freddie Mac Loan Wasn't Just Massive. It Came With Unusually Good Terms, Too". ProPublica. ProPublica. Retrieved October 1, 2020.
  21. ^ Dunlap, David W., (June 22, 2003). "Postings: 2 Floors for Wagner Graduate School; N.Y.U. Leases 3 Floors at Puck Building" Archived December 26, 2016, at the Wayback Machine. The New York Times. Retrieved September 28, 2011.
  22. ^ "A Big Deal, Even in Manhattan: A Tower Goes for $1.8 Billion". New York Times. December 7, 2006. Archived from the original on June 20, 2016.
  23. ^ a b Elkies, Lauren (November 1, 2007). "The Closing: Charles Kushner" Archived May 31, 2010, at the Wayback Machine. The Real Deal. Retrieved September 28, 2011.
  24. ^ Bagli, Charles V. (December 7, 2006). "A Big Deal, Even in Manhattan: A Tower Goes for $1.8 Billion" Archived May 16, 2015, at the Wayback Machine. The New York Times. Retrieved November 12, 2007.
  25. ^ Sherman, Ted (August 12, 2018). "The Kushners needed a bailout for Jared's bad bet in N.Y., but still have a full portfolio in Jersey". nj.com.
  26. ^ Smothers, Ronald (June 14, 2006). "Newark: Large Real Estate Block Offered for Sale" Archived September 19, 2017, at the Wayback Machine. The New York Times. Retrieved September 28, 2011.
  27. ^ "Kushner's blow-out sale.", Real Estate Weekly, July 4, 2007. Retrieved September 28, 2011.
  28. ^ Russell, Suzanne (September 16, 2011). "Perth Amboy's Landings at Harborside project takes new direction". Home News Tribune. Archived April 2, 2015, at the Wayback Machine
  29. ^ "Purchase Building Complex". jw.org. Archived from the original on July 13, 2013. Retrieved July 13, 2013.
  30. ^ a b c d Drucker, Jesse; Bagli, Charles V. (June 6, 2017). "Kushner Companies Seeking $250 Million to Pay Off Chinese Backers". The New York Times. p. A18. Archived from the original on June 7, 2017. Retrieved June 7, 2017.
  31. ^ "Trump's son-in-law settles lawsuit with 2 Jersey Shore restaurants". November 23, 2016. Archived from the original on August 31, 2017. Retrieved April 24, 2017.
  32. ^ Caroline Hallemann (March 21, 2017). "8 Things You Should Know About the Kushner Family: Here's what you need to know about the world of Jared Kushner, Trump's right-hand man". Town and Country Magazine. Archived from the original on June 11, 2017. Retrieved May 7, 2017.
  33. ^ Hernández, Javier C. (May 13, 2017). "Kushner Companies Backs Out of Chinese Investor Events After Furor". The New York Times. p. A16. Archived from the original on June 6, 2017. Retrieved June 8, 2017.
  34. ^ McDonald, Terrence T. (April 3, 2019). "Jersey City, Kushner lawyers wrangle over legal bill". nj.com. Retrieved April 30, 2019.
  35. ^ Kocieniewski, David (August 31, 2017). "Kushners' China Deal Flop Was Part of Much Bigger Hunt for Cash". Bloomberg. Archived from the original on August 31, 2017. Retrieved August 31, 2017.
  36. ^ Edward Helmore (April 7, 2017). "Immigrant investor program under fresh scrutiny as Chinese president visits US: FBI raided Chinese-focused cash-for-residency scheme linked to EB-5 visa that has been used by developers such as Jared Kushner before Trump met Xi Jinping". The Guardian. New York. Archived from the original on May 7, 2017. Retrieved May 7, 2017. FBI raids were focused on the California Investment Immigration Fund, a business allegedly connected to abuses of the controversial EB-5 program
  37. ^ Lipton, Eric; Drucker, Jesse (May 9, 2017). "Kushner Family Stands to Gain From Visa Rules in Trump's First Major Law". The New York Times. p. A1. Archived from the original on May 9, 2017. Retrieved June 8, 2017.
  38. ^ Orden, Erica; Viswanatha, Aruna; Tau, Byron (August 2, 2017). "U.S. Attorney Subpoenas Kushner Cos. Over Investment-For-Visa Program". WSJ. Retrieved October 31, 2019.
  39. ^ Protess, Ben; Silver-Greenberg, Jessica; Enrichdec, David (December 22, 2017). "Prosecutors Said to Seek Kushner Records From Deutsche Bank". The New York Times. Retrieved December 25, 2017. In recent weeks, prosecutors from the United States attorney's office in the Eastern District of New York subpoenaed records from Deutsche Bank, the giant German financial institution that has lent hundreds of millions of dollars to the Kushner family real estate business.
  40. ^ Enrich, David (May 19, 2019). "Deutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts". The New York Times.
  41. ^ "Deutsche Bank fined for $10 billion Russian money-laundering scheme". January 31, 2017.
  42. ^ Vogell, Heather. "The Kushners' Freddie Mac Loan Wasn't Just Massive. It Came With Unusually Good Terms, Too". ProPublica. ProPublica. Retrieved October 1, 2020.
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