The Manhattan tower co-owned by the family of Jared Kushner, President Donald Trump’s son-in-law, has been losing money for three years and faces increasing loan fees in 2017, which may explain why the family has been negotiating with Chinese insurance behemoth Anbang on new financing.
The fees, at 666 Fifth Avenue, kicked in last month and escalate with each payment until the loan is repaid, a 2011 refinancing agreement shows. December brings another hurdle: Interest paid on the bulk of about $1.1 billion of loans jumps to 6.35 percent, more than double what it was after the debt was refinanced in 2011.
And as the city’s biggest office construction boom in a quarter century creates a glut of supply, the property’s occupancy rates are falling.
.. Costing a then-record-setting $1.8 billion in early 2007, the building would later become a symbol for a period of irrational exuberance in U.S. real estate, where a belief in forever-climbing rents sent values soaring. The deal was financed with a $1.215 billion loan from Barclays Capital
.. Mortgages were granted under assumptions that now look rosy: The building would throw off $119 million in net operating income and would be 98 percent occupied, underwriters expected.
Is Jared Kushner doomed?
Often called the shadow secretary of state
.. maybe brilliant, though he did manage to buy the nation’s most expensive building just before the 2008 recession hit.