Kushner Companies

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Kushner Companies LLC
Private
IndustryReal estate
Founded1985; 33 years ago (1985)
FounderCharles Kushner
Headquarters666 Fifth Avenue, ,
Key people
Joshua Kushner
(Principal director)
Nicole Kushner Meyer (Principal)
Laurent Morali (President)
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. It also owns the Puck Building in New York City. Its founder, Charles Kushner, was convicted of tax evasion and witness tampering in 2005, and served time in federal prison. As a result, he handed over the management of the company to his son Jared Kushner.[2]

A study published in December 2017 by Bloomberg News indicated that Kushner Companies owns a stake in over 60 buildings in New York City.[3]

History[edit]

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.[4]

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.[5] 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.[6][7] 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.[3] The building, which represented significant debt for the company was leased in 2018.[8]

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.[9][10] Before that sale, the Companies had employed approximately 800 people.[6]

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.[11]

On July 5, 2013, Kushner Companies signed an agreement to purchase a five-building complex in Brooklyn, New York, formerly used by Jehovah's Witnesses, for $340 million. The building is 95% owned by CIM Group.[12][3]

In the 2010s, developers such as the Kushner Companies widely used the EB-5 visa to fuel a "high-end US residential boom".[13] In May 2017, President Donald Trump renewed the visa program in his first major piece of legislation.[14]

In 2016, Kushner Companies opened Trump Bay Street, a luxury 53-story apartment tower in Jersey City, New Jersey.[15]

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.[15] 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.[15] Jared Kushner retained his interest in the building after becoming senior advisor to President Trump, his father-in-law.[15]

In 2017, Nicole Kushner Meyer joined her brother Josh in Kushner Companies, serving as a principal.[16] 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, causing her to cancel the rest of her roadshow appearances.[17]

According to Bloomberg, the company is facing an increasingly "distressed situation". Over the last few years, family members have sought substantial overseas investment to deal with "troubled finances".[18]

September 2017; U.S. Attorney Subpoenas Kushner Cos. Over Investment-For-Visa Program.[19]

In 2017, the United States District Court for the Eastern District of New York subpoenaed Deutsche Bank records pertaining to Kushner Companies.[20]

Activities[edit]

The company owns properties in Long Branch, New Jersey[21] 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]

Kushner Companies has received multiple loans from Israel’s Bank Hapoalim.[22]

Kushner Companies "received a roughly $30 million investment from Menora Mivtachim" in 2017.[23] It was spent on "a Maryland development".[24]

References[edit]

  1. ^ Becker, Susanne Craig, Jo; Drucker, Jesse (January 7, 2017). "Jared Kushner, a Trump In-Law and Adviser, Chases a Chinese Deal". Archived from the original on April 23, 2017. Retrieved April 24, 2017 – via NYTimes.com.
  2. ^ York, Byron. "Byron York: The sordid case behind Jared Kushner's grudge against Chris Christie". Archived from the original on August 28, 2017.
  3. ^ a b c "Kushners' New York City Buildings Are Mostly Owned By Others". Bloomberg. 19 December 2017.
  4. ^ 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.
  5. ^ "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.
  6. ^ 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.
  7. ^ 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.
  8. ^ "Kushners needed bailout for Jared's bad bet in N.Y., but have full N.J. portfolio".
  9. ^ 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.
  10. ^ "Kushner's blow-out sale.", Real Estate Weekly, July 4, 2007. Retrieved September 28, 2011.
  11. ^ 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.
  12. ^ "Purchase Building Complex". jw.org. Archived from the original on July 13, 2013. Retrieved July 13, 2013.
  13. ^ 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
  14. ^ Eric Lipton; Jesse Drucker (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.
  15. ^ 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.
  16. ^ 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.
  17. ^ 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.
  18. ^ 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.
  19. ^ Orden, Erica. "U.S. Attorney Subpoenas Kushner Cos. Over Investment-For-Visa Program". Archived from the original on August 27, 2017.
  20. ^ 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.
  21. ^ "Trump's son-in-law settles lawsuit with 2 Jersey Shore restaurants". Archived from the original on August 31, 2017. Retrieved April 24, 2017.
  22. ^ Becker, Susanne Craig, Jo; Drucker, Jesse (February 7, 2017). "Jared Kushner, a Trump In-Law and Adviser, Chases a Chinese Deal". Archived from the original on January 7, 2017 – via NYTimes.com.
  23. ^ Drucker, Jesse (January 7, 2018). "Kushner's Financial Ties to Israel Deepen Even With Mideast Diplomatic Role". The New York Times. Retrieved 1 March 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.
  24. ^ Helmore, Edward (January 8, 2018). "Jared Kushner's company under renewed scrutiny over Chinese and Israeli deals". The Guardian. Retrieved 1 March 2018. According to the report, the funds were directed into a Maryland development.

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