Kushner Having Devil Of A Time Paying For 666 Fifth Avenue

You might think Jared Kushner has it all—Ivanka Trump as his wife, a baby on the way, a newspaper, real estate. But he has his problems, too, based on this Wall Street Journal article today. See, back in 2006, he paid $1.8 billion for a MIdtown skyscraper, and now, the WSJ reports, "With cash running low, the 30-year-old developer is scrambling to hold on to 666 Fifth Ave. ahead of a looming default deadline."

Further, the WSJ explains, "As of March, the aluminum-panel-clad skyscraper, where retailer Uniqlo is planning its flagship store, was about $3.5 million-a-month short on debt service, say people familiar with the matter. Only $10 million remained in a reserve fund used to service the property's $1.22 billion mortgage, which is tied to the office portion of the building. Its revenues are only one-fourth the amount forecast in 2007." While the retail portion of the building is doing well, the building's office space is 30% vacant: "Once projected to take in nearly $120 million in annual office rent, the 39-story building is on track to post income of close to $30 million this year, down from $60.1 million in 2007."

Kushner's spokesman said, "The Kushners are ready and willing to invest more money into the property as soon as they can come to mutually satisfactory terms with the servicing agent," and even Donald Trump weighed in about his son-in-law, "He is a very smart young man. I think it will come out well for him and everybody."

Back in 2006, Kushner explained the purchase to the NY Times, "This is a great acquisition for our company. We are upping our presence in Manhattan. It’s a logical expansion for us."