Charles Kushner's Massive 666 Fifth Ave. Redevelopment To Cost $7.5B
Want to get a jump start on upcoming deals? Meet the major New York City players at one of our upcoming events!
Details of Charles Kushner's big vision to redevelop his family's trophy, 666 Fifth Ave., are emerging, and it could be a bonanza for the father of President Donald Trump's son-in-law.
Kushner's dream redevelopment project for 666 Fifth Ave., which would rebrand the building 660 Fifth Ave., would cost $7.5B and turn it into a soaring 1,400-foot-tall skyscraper in Midtown. He plans to close all pieces of the deal in the coming months, the Wall Street Journal reports.
The real estate mogul made moves two years ago to add 40 floors to the family's prized asset and turn it into a 1.45M SF mixed-use building.
The renovation project, designed by renowned architect Zaha Hadid before she died last year, would consist of stripping the building to its steel structure and redeveloping the floors to consist of an 11-story hotel and 464K SF of residential. It may take until 2025 to complete, by which time Kushner estimates the project could be worth as much as $12B, according to the Wall Street Journal.
The residential condos would sell for $6K/SF, which would put it at the top of the currently sluggish luxury condo market, but the company is confident they would sell. After all, the apartments would not be ready for the market for another seven years. Kushner is in negotiations with his building partners, potential investors, lenders and current tenants who would need to relocate, according to the WSJ.
Additional issues that need to be ironed out include: Kushner's buying out the building's current tenants so they could move before demolition, and refinancing the building's $1.15B in debt.
Anbang Insurance Group, a massive Chinese insurer with strong ties to the Chinese government denied it is in negotiations to provide up to half the $2.5B needed for the redevelopment. People familiar with the matter told the Wall Street Journal Anbang may decide on the investment this week.
Kushner believes he is capable of raising the necessary equity without Anbang. Under Kushner's plans, his family's company would hold a 20% stake in the final product.