Kushner family company in possible Chinese deal

Mar 16, 2017, 00:30

At that time, Vornado purchased a almost 50 percent stake in the office section of the building, and bought out the retail component the following year.

China's Anbang Insurance Group, that has alleged ties to families of the Communist Party, is investing in a Manhattan building owned by the Kushners.

The deal places a valuation of $2.85 billion on the 41-story tower, setting a new record for a single NYC building.

In 2014, the insurer bought New York's landmark Waldorf Astoria hotel from Hilton Worldwide Holdings Inc (HLT.N) for $1.95 billion. A Kushner family company bought the building at the height of the real estate boom in 2007, and afterwards struggled to make mortgage payments.

Technology firm 1WorldSync has reached a deal to lease 22,247 square feet at 300 S. Riverside Plaza in Chicago, according to a report on Monday from.

Anbang, a Chinese conglomerate with nearly $300 billion in assets, is owned by 39 companies, many of them shell companies that, when traced, lead to empty offices or government registration bureaus, according to Chinese government records.

The planned partnership is searching for additional investors through a federal program known as EB-5, which offers residency permits to major foreign investors.

Asked for comment, a White House spokeswoman said Kushner will recuse himself from any matter where his impartiality could be reasonably questioned, including an examination of the EB-5 program. A company spokesman, James Yolles, said that Jared Kushner sold his ownership stake in 666 Fifth to family members so the transaction poses no conflict of interest with his White House role.

Anbang would pay a hefty price for both sections of the 666 Fifth Ave. project but score its first USA real estate investment of the year.

The talks for this deal had started past year when Jared Kushner had met Wu Xiaohui, the chairman of Anbang Insurance Group.

In 2015, it was reported that Jared Kushner, who was still a part of Kushner Companies at the time (he stepped down earlier this year), was in talks with Steve Roth, the head of Vornado, to restructure the building into a 1,400-foot condo and hotel with a large retail component.