Brookfield Property Partners LP is in advanced discussions to bail Kushner Cos. out of the troubled office tower at 666 Fifth Ave. in New York City, which it jointly owns with Vornado Realty Trust, The New York Times reported, citing two unnamed sources.
If a deal materializes, Kushner would buy out Vornado's 49.5% stake in the tower's office portion. The primarily office-focused real estate investment trust would retain ownership of the building's retail spaces.
Publicly traded commercial real estate company Brookfield Property, which is backed by the Qatar Investment Authority, would assume the leasing and operation of the 41-story tower, which reportedly only generates roughly 50% of its annual mortgage payment and is about 30% vacant. The company intends to invest "hundreds of millions of dollars" to renovate the building, the publication noted.
Kushner Cos. head Charles Kushner would pay $120 million to Vornado to settle an $80 million high-interest loan provided by the REIT for the office building.
Vornado Chairman and CEO Steven Roth recently disclosed that his company had a handshake deal to sell its stake in the building's office portion to Kushner Cos., which is controlled by the family of White House adviser Jared Kushner.
Neither Kushner Cos. nor Brookfield Property commented on the matter. The White House and the Qatar Investment Authority did not immediately respond to comment requests, according to the report.