Kushner Family Ends Deal Talks With Anbang After Dems Blast Alleged 'Conflict'

Tyler Durden's picture

666 5th Avenue, ironically, has been a curse to Jared Kushner ever since he purchased the tower for a then-record $1.8 billion in 2007. It was supposed to be a signature move that signaled Kushner's intention to expand beyond his family's extensive holdings in suburban apartments to more prestigious urban properties in Manhattan. 

Unfortunately, Kushner's market timing couldn't have been worse with the 'great recession' paralyzing the commercial real estate market just months after his trophy purchase.  Four years later, with the property on the verge of insolvency, Kushner was forced to sell a 49.5% stake in the skyscraper to Vornado for an $80 million capital injection. Voranado later invested even more in the tower in 2012, purchasing the retail spaces at the building’s base from Kushner and others for $707 million.

Meanwhile, the latest headache from 666 Fifth Avenue came after Kushner's family trust decided to pursue a potential transaction with China’s Anbang Insurance Group  which resulted in complete outrage from the left over alleged "conflicts of interest".  Now, just a couple of weeks after rumors of the deal first surfaced, the Kushner family has confirmed they ended talks with Angang to redevelop the Manhattan office tower.  Per Bloomberg:

“Kushner Companies is no longer in discussions with Anbang about 666 5th Avenue’s potential redevelopment, and our firms have mutually agreed to end talks regarding the property,” according to a statement emailed by a Kushner spokesman, who declined to comment further. “Kushner Companies remains in active, advanced negotiations around 666 5th Avenue with a number of potential investors.”

 

A spokesman for Anbang declined to comment.

Kushner

 

As we noted a couple of weeks ago, the potential deal with Anbang raised some eyebrows in Washington DC due to, among other things, the Chinese company's murky links to the Chinese power structure which raised national security concerns over its previous U.S. investments as well as some favorable debt relief terms contemplated in the transaction.   Per Bloomberg:

Anbang will pay for most of the building and take out a construction loan of more than $4 billion to convert the property’s higher floors into luxury residential units. The Kushners have agreed to invest $750 million in the retail portion of the building and will end up with a one-fifth stake in a project that the deal document says would be valued at $7.2 billion when completed. In addition to the $400 million from Anbang, the Kushners will receive another $100 million from other investors.

 

An unusual consideration in the refinancing plan is the proposal to pay off a part of the mortgage known as a "hope note," which was for $115 million when Kushner Cos refinanced its debt in 2011. The loan, which was made by Barclays Plc and has since been sold off to investors, is now valued at more than $250 million because of compounded interest. But according to the deal documents, the Kushners will settle the debt for just $50 million. The Kushners declined to discuss the agreement. LNR Partners LLC, which currently oversees the debt, declined to comment.

 

The plan also relies on the government program known as EB-5, which grants two-year visas and a path to permanent residency to foreigners who invest a minimum of $500,000 in projects that create jobs in economically distressed areas.

 

Supporters argue that the program, which is overwhelmingly used on deals involving Chinese investors, attracts foreign capital and creates jobs at no U.S. taxpayer cost. But some Homeland Security officials and the General Accounting Office have warned that lax vetting has threatened to turn the program into a mechanism for the government to sell visas to wealthy foreigners with no proven skills, paving the way for money laundering and compromising national security.

The deal contemplated would have valued the 41-story tower at $2.85 billion, the most ever for a single Manhattan building, including $1.6 billion for the office section and $1.25 billion for the retail section. Of course, the sheer size of the transaction combined with a questionable foreign partner and the curious timing, coming just months after Trump took over the White House, certainly contributed to the Democrats' angst.

"This is a huge, huge exit strategy for an office building," said Joshua Stein, a New York real estate lawyer. "It does sound like a home run of a transaction for Kushner and his group.”

 

"At the very least, this raises serious questions about the appearance of a conflict that arises from the possibility that the Kushners are getting a sweetheart deal," said Larry Noble, general counsel at the Campaign Legal Center. "A classic way you influence people is by financially helping their family."

 

The transaction would allow the Kushner Cos.’ investment in the tower to be salvaged by lenders and businesses that could have extensive dealings with the federal government, while also permitting the Kushners to buy back into the building’s more lucrative retail spaces and maintain a 20 percent stake.

So with one "conflict" removed, Democrats will have more time to focus on Kushner's coordination with Russian spies to steal a U.S. election.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Duc888's picture

 

 

 

Horrible, my God, "Oh, the Humanity...."

 

Nothingburger.

HopefulCynical's picture

The Marxist Democrats and their globalist puppetmasters are absolutely frantic. RynoCare's defeat didn't lessen Trump's support one bit; people saw right through that shit. They are watching LePen in France; they know the truth of the Dutch election results; Brexit was just triggered.

The "ripe fruit" of Western Civ that was supposed to "drop into their hands" is being taken away from them, right before their very eyes.

knukles's picture

Just you wait, Progressives, until the conspiracy/treason and criminal trials begin for your past scams
It'll give you something to really scream about.

Chris Dakota's picture
Chris Dakota (not verified) knukles Mar 29, 2017 12:25 PM

Get rid of this traitor and Ivanka.

They are bringing WW3.

http://lamecherry.blogspot.com/2017/03/cherrystone-files-source-of-spyin...
LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) FrozenGoodz Mar 29, 2017 12:38 PM

It is cheered when an ultra-corrupt, cankle laden, politician witch brings in hundreds of millions of dollars in pay-for-play (that was cancelled by the election - so sad). But when a successful business man makes legitimate deals we must run in circles with our arms in the air, shrieking in horror.

JRobby's picture

Fucking Cry Baby Democrunts. Let them sit in their own dirt for 8 years.

Jerk offs!!!!

curbjob's picture

Right,  because  $7.2 billion isn't enough incentive to push for policy that would benefit your book.

No way would chump change like that stand in the way of making America great again,  right ?

alangreedspank's picture

Yeah, lobbyists lobby. Of course Clinton was going to change that. /sarc

curbjob's picture

You poor thing : (

.. any criticism of Trumps team automatically results in a Clinton bleat; meheheheClinton  meheheheClinton, like a Chinese fucking stuffed toy.

JRobby's picture

You give those to your kids, don't you?

Takeaction2's picture
Takeaction2 (not verified) Duc888 Mar 29, 2017 11:26 AM

If OBama or Clinton were doing this, they would just make it part of their government agenda, or slide it under the "Foundation"...oh the praise they would get...they are such good people.  FUCK THE DEMOCRATS.  Who gives a fuck if Kushner is talking about redevelopment of a property.  REALLY?   If ANYONE in the government ...especially the President and his family wanted to pull some shady shit...

DO YOU THINK THEY WOULD DO IT IN PUBLIC?? Don't you think they could pull some hidden crazy shit if they wanted....??....COME THE FUCK ON..........AND...he is talking about redeveloping a property...sounds like more jobs to me?  THis is just the crybabies again.  FUCK YOU SHUMER.

nevertheless's picture

wow, so because the dems are criminals, we should accept criminality in trump.

 

your reasoning is morally bankrupt and highly destructive. 

 

every choice should be on our morality, not the lack of morality by Zionist filth like shumer. 

alangreedspank's picture

I'd take "criminality" that backs the 2nd amendment and doesn't drink the immigration kool-aid. Whatever your take is on it, autist, is that after an election you usually end up with a government.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) alangreedspank Mar 29, 2017 12:38 PM

Damn! The Hillary/Dear Leader fan-boys are coming on strong today. LOL!

caconhma's picture

This yellow face baboon must make his mind right now: either he is a US President serving exclusively to the American people or he is a lowlife scumbag trying to enrich himself and his family at the expense of America and its people. So far, Trump accomplish nothing he promised before the elections. Apparently, he is too busy with his personal affairs.

GS people are not accidentally control the Trump administration. After all, they are lenders of his real-estate holdings and holding him by the balls. May be this is why he keeps his tax return secret.

alangreedspank's picture

You are assuming all his voters cared about his promises. But by simply not being an anti-gun, open-borders SJW, he was bazillion times better than Clinton.

Dog Will Hunt's picture

Nothingburger.  

 Right.  And when $hillary does it, it's a gigantic shitburger.  Fuck you, and fuck your fellow hyperconservative cucks who repeatedly take a giant shit on true republicanism by bending your knobby-ass knee in blind fealty to anything with an (R) beside it.  

 

JRobby's picture

What!?!? is there a Troll conference today? All the Trolls were late to this one?

The charm of the steady pay check from Soros & Obama wearing off?

JimJones's picture

Good, shady m'effers!

incharge1976's picture

They aren't angry because he's doing it. They are angry because they didn't get a cut of the action. 

spastic_colon's picture

they can now move on to the next sucker buyer; china has been used enough apparently; where's blackstone when you need them? sell it to a lib run company to make them happy, i would love to see the market fall out from under those dikhed's

One Ton Lady's picture

666

 

nice number

 

JRobby's picture

Democrunts want it for their pizza parties.

Chris Dakota's picture
Chris Dakota (not verified) One Ton Lady Mar 29, 2017 12:26 PM

When you own a big property you get to choose the address, he wanted it.

SteveNYC's picture

$7.2Bn in value, with high-end tanking in Manhattan, and retail doing no better? A single building? I don't buy it.

 

MsCreant's picture

Unless you are Janet Yellen, you probably can't.

highwaytoserfdom's picture

Can you hurry up and make the UN building a hotel..  Give to Hilton 

 

 

Don't care

Bill of Rights's picture
Dems Blast Alleged 'Conflict'

 

Ha ha ha oh the Hypocrisy...It burns. Miserable fucks...

NuYawkFrankie's picture

Forget about the shady biz deals - thats par for the course.

I'd like to know exactly what "talents" - being a successful  New York City slum-lord doesn't count - qualify  Kushner to be given authority over how the USSA "Government" is to be stream-lined.

Colonel's picture

"But some Homeland Security officials and the General Accounting Office have warned that lax vetting has threatened to turn the program into a mechanism for the government to sell visas to wealthy foreigners with no proven skills, paving the way for money laundering and compromising national security."

 

About that "lax vetting". Flooding the US with low skill, poor immigrants/criminals is the better idea? Effin goobermint idiots. 


incharge1976's picture

Can't wait for the Russian story and illegal monitoring of Trump to boil over so the Dems are destroyed for an entire generation. 

Fake Trump's picture

Very bad timing when President Xi of China is meeting Trump next week in Forida. Trump won't dare to bring up that issue in slapping China with his rhetoric 45% tariff on China export to the US. The reason is simple. China had approved his Trump Trademark in China. If this is not an issue of conflict of interest what then is.

roadhazard's picture

Kushner= Trumps right hand man.

nevertheless's picture

and while the media distracts us with idiotic "attacks" upon trump as a puppet of Russia, in reality trump is a puppet to the zionist world order. 

 

kushner like his father are criminals.

 

the zionist media would never focus on an actual issue with trump, that is not their job, their job is to give Americans the IMPRESSION they are anti trump, they are not. the same filth that owns the media owns trump. 

 

Americans are beyond naive, each time falling for these media narratives, even when the media has been proven to lie time and time again. 

Fed-up with being Sick and Tired's picture

I agree...the Narrative thing has gotten SOOOO obvious.

FoggyWorld's picture

Maybe I've been around too long but I don't think one puts his right hand man on a forever special project such as an effort to streamline government.  

My gut reaction when I heard it was that Trump was smarter than he often gets credit for.   He knew from the blow back that the optics of Kushner were not good and to that, he had to be concerned about how the others on his very small team were reacting to Kushner.  Bannon and Priebus are actually sharing an office and Kushner is alone.  Sort of screams out things weren't as calm as one might want.

So now Kushner is out of the everyday, put the fires out routine and will not be part of the foreign policy arena.   Now I realize he is married to Ivanka who will be in all sorts of meetings but I remember years ago when Johnny Carson would line up five people on the stage and have them whisper a joke down the line to each other.   Always ended up a total disaster and the replay of information was never, ever accurate.

So yes, Ivanka can do the pillow talk bit but I don't see it turning into a situation where either of them are going to be Trump's right hand anything.   Ivanka and Jared were pretty solid progressives before her father decided to run.  She donated to people like Pelosi and Harry Reid.   I think Trump has POSSIBLY and very artfully sidelined the Kushners just a bit.   And I really hope I am right. 

 

 

johnwburns's picture

Fucking Bernie Madoff junior. This little prick is a bomb waiting to go off. He's his baby's hubby but if Trump has any brains he'll isolate this greedy little shylock. 

johnnycanuck's picture

Trumplanders rush to defend nepotism, cronyism and potential influence peddling because it's TrumpBrand version, not DemBrand...

 

 

nevertheless's picture

exactly, the ruin of America is paved with hypocrisy. 

 

the dems were fine with obama's brand of militarism/fascism, yet scream about how dangerous trump is.

 

and certainly trump supporters would never tolerate the corruption of trump if it was obama. 

 

of course this is all by design. the zionist powers that be use each election to cement the "left vs right" meme in America, playing to American's weakness tribalism, placing imaginary parties over country. 

tbone10's picture

No!  this happened to the kike boy wonder? Get out!

TAALR Swift's picture

Imagine the outcry if, instead of selling to China's Angbang group, he had involved Russian investors, like the Bangbang or Gangbang group.

onwisconsinbadger's picture

Anti Semitic move. Sad !!!!