WSJ: Kushner Cos. Pays $1.1B For 6,000 Apartments, Firm’s Biggest Deal In Decade

NEW YORK, NY - MARCH 6: A Kushner Companies logo is visible near an entrance to the Kushner Companies' flagship property 666 Fifth Avenue in Midtown Manhattan, March 6, 2018 in New York City. Kushner Companies, run b... NEW YORK, NY - MARCH 6: A Kushner Companies logo is visible near an entrance to the Kushner Companies' flagship property 666 Fifth Avenue in Midtown Manhattan, March 6, 2018 in New York City. Kushner Companies, run by the family of White House senior adviser Jared Kushner, has been trying to raise funds for their $1.2 billion dollar mortgage on the building that is due in February 2019. The Kushners bought the property for $1.8 billion in 2006. Many real estate analysts say that they Kushners vastly overpaid for the property. (Photo by Drew Angerer/Getty Images) MORE LESS
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February 24, 2019 5:00 p.m.

Matt Shuham contributed reporting.

NEW YORK (AP) — The real estate firm run by White House adviser Jared Kushner’s family has pulled off its biggest deal in more than a decade.

Kushner Cos. paid $1.1 billion for a portfolio of about 6,000 apartments in Maryland and Virginia that had been owned by Lone Star Funds, according to a story published Friday by The Wall Street Journal.

It marks Kushner Cos.’ most expensive purchase since paying $1.8 billion for a Manhattan skyscraper in 2007.

The debt taken on in that the 2007 deal strained Kushner Cos.’ finances until last year when it sold the building to Brookfield Asset Management. The 41-story tower located at 666 Fifth Ave. still serves as Kushner Cos. headquarters as part of a 99-year lease with Brookfield.

Citing two unnamed people familiar with the discussions, Bloomberg reported Friday that Kushner Cos. has been in talks with Fannie Mae and Freddie Mac, which have been under federal conservatorship since the housing market collapse, about potentially securing a government-backed loan for the purchase.

Kushner Cos.’ dealings have been drawing more scrutiny because of its connections to Jared Kushner, who is President Donald Trump’s son-in-law as well as a senior adviser. The company is run by Jared Kushner’s father, Charles.

Kushner Cos. didn’t respond to a request for comment Saturday from The Associated Press. The company previously has said that it has become more difficult to do business because of the heightened attention stemming from Jared Kushner’s links to Trump, whose own business interests have raised questions about potential conflicts with his duties in the Oval Office.

With its latest acquisition, Kushner Cos. now owns about 22,000 apartment units with plans to boost its portfolio to nearly 30,000 units, according to the Journal.

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