Tag Archives: Jared Kushner

Ivanka Trump and Jared Kushner Report $135 Million in 2018 Income

In their second year of government service, Ivanka Trump and Jared Kushner reported income from their companies and investments of as much as $135 million, according to their annual financial disclosure reports made public on Friday.

Ivanka Trump and Jared Kushner reported an income range of $29 million to $135 million for 2018, down from a range of $82 million to $222 million in 2017.CreditCreditToby Melville/Agence France-Presse — Getty Images

All told, the couple’s real estate holdings and other investments were worth as much as $786 million, down slightly from 2017. Their total annual income was between $29 million and $135 million, a range that was lower than what they reported in 2017.

Mr. Kushner’s partial ownership of his family-run real estate business, Kushner Companies, has drawn criticism from ethics experts, particularly as the firm has solicited investments from foreign sources, including in the Middle East, where Mr. Kushner is a top White House liaison.

Although Mr. Kushner held on to the bulk of his stake in the company, which he once ran, he sold some of his assets to a trust controlled by his mother.

One of those divested assets was his share in Kushner Companies’ flagship property at 666 Fifth Avenue in Manhattan. Last year, Kushner Companies struck a deal with Brookfield Asset Management for a roughly $1 billion bailout of the troubled property. Brookfield’s property arm is partly owned by the Qatari government.

Ms. Trump reported 2018 income totaling between $6.7 million and $10.7 million. She has resigned from her leadership roles at her fashion business and her family’s real estate and branding company since her father became president, but she retained stakes in some of those businesses.

Ms. Trump earned just under $4 million from the Trump International Hotel in Washington, which has become a magnet for visiting executives and foreign officials with interests before the federal government.

Ms. Trump reported another portion of an advance from Penguin Random House, for her book “Women Who Work,” this time totaling $263,500. She also reported donating it to the Ivanka M. Trump Charitable Fund. In 2017, she received about $289,000 from that advance.

The couple’s total income was between $29 million and $135 million in 2018, compared with a range of $82 million to $222 million in 2017.

The drop was due, in part, to their divestment of several assets that previously generated tens of millions of dollars in income for the couple, including the stake in 666 Fifth Avenue.

Last year, The New York Times reported that Mr. Kushner apparently had paid almost no federal income taxes for several years running.

Source: by Jesse Drucker and Agustin Armendariz | The New York Times

Kushner Family Sells 666 Fifth Avenue Office Tower To Brookfield

Brookfield Asset Management has agreed to purchase the lease the office portion of 666 Fifth Ave. in midtown Manhattan from the Kushner family, the WSJ reported.

https://www.zerohedge.com/sites/default/files/inline-images/666%20fifth.jpg?itok=GPwHhBCc

“Given Brookfield’s experience in successfully redeveloping and repositioning major office assets in New York and other cities around the world, we are well placed to capitalize on that opportunity,” Ric Clark, Brookfield Property Group’s chairman, said in a statement.

The infamous “devil” tower with the “666” sign on the entrance, has been under scrutiny because Jared Kushner is married to Ivanka Trump, and is a senior adviser to the president. When the Kushner Cos acquired the building in 2007 for $1.8 billion, it represented a New York commercial real estate record and was made when Kushner was taking a leadership role in the business. It remained precarious for years, and potential deals became complicated after Mr. Kushner took the senior White House job.

While terms of the deal weren’t disclosed in a statement Friday, the WSJ notes that the proceeds would give the family enough to pay off the more than $1.1 billion of debt on the building and buy out its partner, Vornado Realty Trust, for $120 million so it can transfer 666 Fifth to Brookfield unencumbered.

The sale means that the Kushner family likely won’t make any money on its investment in 666 Fifth Ave.

In recent years, the building hasn’t been generating enough money to pay its debt service. Jared Kushner had already sold his stake in 666 Fifth to a trust controlled by other family members to avoid potential conflicts. Still, the talks between Anbang and his father ignited criticism that Kushner might use his position to help his family salvage its investment.

Brookfield, which is buying the property through one of its private-equity funds, also plans to invest more than $600 million in overhauling the 39-story building, giving it a new lobby, façade and mechanical systems, according to a person familiar with the matter.

The building has seen its rental payments suffer in recent years due to a relatively high vacancy rate but is viewed in real-estate circles as having potential due to its prime location on Fifth Avenue between 52nd and 53rd Streets.

The structure of the deal is different from what Brookfield and Kushner Cos. discussed in the spring. Back then, Brookfield was considering a deal in which it would essentially acquire Vornado’s 49.5% stake in the property and become partners with the Kushner family.

One of the uncertainties about the Brookfield purchase of the 99-year lease is how much of the current debt on the building is going to be repaid. In the 2011 restructuring, the debt was carved into two pieces—a senior piece and a junior piece. The senior piece is worth $1.1 billion and the junior piece has increased since 2011 to over $300 million, because interest on it has been accruing.

Kushner executives have been arguing that only the senior debt on the building has to be repaid, partly because 666 Fifth isn’t worth the total $1.4 billion of debt on the building.

The recent history of the building is remarkable.

The property has taken numerous twists, both financial and political. Kushner Cos. sold a controlling stake in the retail space for more than $500 million a few years after it purchased the tower in 2007, using most of the proceeds to repay debt.

But that wasn’t enough to shore up the property in the post-crash years. In 2011, Kushner Cos. renegotiated what was then $1.2 billion in debt and brought in Vornado as a 49.5% partner.

In 2017, soon after Mr. Trump took office, Mr. Kushner’s father, Charles Kushner, was negotiating with Anbang Insurance Group, a Chinese insurer with connections to Beijing government. The elder Mr. Kushner’s plan at the time was to use Anbang’s capital in a $7.5 billion plan to convert 666 Fifth Ave. into a 1,400-foot-tall mixed use skyscraper with retail, hotel and condominiums.

Soon after, the Anbang talks soon collapsed. Since then, Kushner Cos. has steered clear of any deals with sovereign funds, a decision which has made the firm rein in its ambitious plans for the site. The family also faced a deadline: the debt on the building needs to be repaid next year.

And thanks to Brookfield, that will no longer be Jared’s problem any more.

Source: ZeroHedge