666 Fifth Ave. Could Get A $700M Cash Infusion From Brookfield

Bisnow/Miriam Hall
Ric Clark Founded Watermanclark In Late 2020 And Has Invested In Lex.

Brookfield is preparing to inject a huge sum of equity into 666 Fifth Ave., potentially enough to make it the majority owner of the troubled skyscraper.

Brookfield is in negotiations to place $700M in equity and $1B in new debt in a deal with Kushner Cos., Bloomberg reports. Kushner paid Vornado $120M to take full control of the office portion of the 41-story tower earlier this year in a deal that paved the way for Brookfield to take ownership in some form.

Kushner has a debt burden north of $1.2B on the building that is set to mature in February, and with the tower already not making enough money to cover its annual debt payments, the building's future has been in doubt for years. Brookfield was previously reported to be in negotiations to step into Vornado's 49.5% ownership position, but the sheer amount of capital being discussed makes a controlling ownership stake more likely.

Brookfield, which has taken an increasingly prominent role in New York City real estate, is likely to use the equity to kick-start a major renovation to attract office tenants to fill some of the building's hundreds of square feet of vacant space.

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