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Report: Jared Kushner Won't Give Up All Of His CRE Holdings

New York

Jared Kushner is keeping parts of his real estate empire, even as he serves as one of President Donald Trump’s closest Oval Office advisers.

The first son-in-law has divested from some properties owned by Kushner Cos., ProPublica reports, but nothing further was offered about the breakdown of which properties Kushner will pull out of and which ones he will keep a stake in. One possible source of conflict could come from Fannie Mae and Freddie Mac, the government-sponsored mortgage finance entities with which Kushner has close financial relationships.

Fannie and Freddie may be subject to an overhaul during the Trump administration. It is a crime for a government official to work on any government matter that impacts that person’s financial interests.

When hired by the government, someone can either sell off assets that could create a conflict, or recuse themselves from matters that could impact any holdings they have.

It s up to the office of White House Counsel Don McGahn to keep tabs on compliance on these matters and make a criminal referral if a serious conflict arises.

In the coming weeks or months, a financial disclosure form filed by Kushner is expected to be made public. This should provide more details about what he does and does not own. Kushner Cos. has said it either owns or manages 20,000 residential units and 13M SF of office and retail space, spread across six states.

Its highest-profile holdings include large portions of the Watchtower complex in Dumbo, Brooklyn, which it co-owns with LIVWRK and RFR, as well as 666 Fifth Ave., which was acquired in 2007 for $1.8B.

The White House and Kushner Cos. have said Kushner has personally divested from 666 Fifth Ave. A Kushner spokesperson also said he has no role in the management or operations of the company, but declined to provide any further details.

Kushner’s legal team has said that he plans to divest from a total of 35 investments, but it is not clear where the process of divestiture currently stands.

Kushner’s wife, Ivanka, is also required to divest from assets that may pose a conflict of interest, and it is not yet clear whether she has done so. She has held a stake in the Trump Organization’s Old Post Office hotel in Washington, DC.