It’s official: Kushner Companies has agreed to purchase the 49.5 percent stake that it does not already own at 666 Fifth Avenue.
According to the Wall Street Journal, a contact for that stake, currently owned by Vornado Realty Trust, was negotiated for $120 million—but Vornado also said that the deal is “conditional,” and “there can be no assurance that this transaction will be completed.” Should it go through, the deal is expected to close in the third quarter of the year.
In about a decade, the Kushner clan’s initial deal for 666 Fifth Avenue went from being the most expensive office building ever purchased to an extraordinarily expensive boondoggle. Jared Kusher, who stepped down as CEO of Kushner Companies in early 2017, negotiated the $1.8 billion deal; but in the years since, various plans for the aging office building have been pitched and fallen through.
The most recent proposal called for a Zaha Hadid-designed supertall with both luxury condos and a hotel; Vornado chief Steve Roth allegedly against that idea, and said the building “would be worth a lot more if it was just dirt.”
According to the Journal, Vornado will receive $58 million from the sale. Kushner Companies, meanwhile, is reportedly close to signing a deal with Brookfield that would allow the latter to take over the leasing and operation of the office tower.