Kush, Chinese investor part
THE Chinese investor that was going to help the Kushner Companies redevelop the $7.5 billion tower at 666 Fifth Ave. is out of the picture, The Post has learned. Headed by Charles Kushner, Kushner Companies is out looking for other backers to re-imagine the 1,400-foottall tower that will be renumbered 660 Fifth Ave.
“Kushner Companies is no longer in discussions with Anbang about 666 Fifth Ave.’s potential redevelopment, and our firms have mutually agreed to end talks regarding the property,” a spokesman said.
But the visionary plan is by no means dead.
While Anbang, a Chinese insurance company, is no longer part of the redevelopment, other money partners are stepping forward, sources said. “Kushner Companies remains in active, advanced negotiations around 666 Fifth Ave. with a number of potential investors,” the spokesman added.
With Jared Kushner focused on his White House job — and no one wants to inter- fere with that mission — everyone at the Kushner firm, from father Charles to mom
Seryl Kushner, and Laurent Morali, firm president, are maintaining a Chinese wall when it comes to investors.
The negative press that besieged both Kushner and Anbang made it clear they could not move forward together on the deal.
“Now, the Kushners are weighing [each potential investor] and whether there is a conflict or even a perceived conflict,” said a source.
While Kushner Companies may end up with an international investor, the source said they are skipping sovereign wealth funds and those foreigners with extensive US business.
When Donald Trump’s chances of becoming POTUS were slim, the company — typical of city developers — was in discussions with sovereign wealth funds and international conglomerates to invest around $500 million. “Now they are telling them, ‘No.’ ”
Meanwhile, two local banks are willing to provide the funds to pay off the current $1.2 billion loan.
“It is not over-leveraged because it comes to $758 per square foot,” the source explained — at a time when Midtown office towers are selling for roughly $1,200 per square foot.
While construction planning is underway, there are also two- and one-year options to extend the payoff.
The total $7.5 billion new project cost would include $2.5 billion of equity, $850 million of preferred equity and $4.15 billion in actual construction costs.
A number of contingencies are already in the works.
Steve Roth’s Vornado Realty Trust would be bought out of its office and retail condos.
Although some reports have derided the building’s declining occupancy, this works in their favor.
That’s because the dozen remaining office and retail tenants, such as Colliers International, also need to be bought out of their leases.
Zara parent Inditex owns its retail space, is cooperating and will get more space.
The tower sits on the full blockfront between 52nd and 53rd streets. Kushner will in five to seven years offer residences with unimpeded views.
Pricing would be around $6,000 per square foot, comparable to the mid-top of the current market.
A 94-key, seven-star hotel with banquet rooms would sit above a nine-level retail podium designed for small shops and topped by a food hall. Those are the real facts.