Kushner Cos. Buys Maryland, Virginia Apartment Portfolio For Over $1B
The deal represents the largest acquisition in over a decade for Kushner Cos., a New York-based firm once again led by Jared Kushner's father, Charles Kushner. Before Jared Kushner took over the firm as a 20-something and started investing heavily in New York properties, Charles Kushner spent decades acquiring apartment buildings in Northeast suburbs, primarily in New Jersey.
The latest purchase comes after Brookfield last year bailed out Kushner by paying it $1.25B for a 99-year ground lease of its troubled 666 Fifth Ave. tower in Manhattan. The deal allowed the Kushner family to escape a $1.1B debt obligation for which it had already received extensions and reductions.
The Journal report did not name the specific properties Kushner acquired in the region. Kushner has come under scrutiny for its rental practices at its Baltimore-area apartments, with tenants suing the firm and the Maryland Attorney General's office investigating the company. A Kushner spokesperson, reached by phone, declined to comment.
Lone Star funds also this month went under contract on two additional Mid-Atlantic apartment portfolio sales for a total of $1.6B. It sold a 15-property portfolio of apartments in the D.C., Baltimore and Philadelphia areas to Morgan Properties for $1.4B and four Pennsylvania communities to One Wall Partners for $180M.