Charles Kushner, head of the Kushner Companies, is in advanced talks with Brookfield Properties over a partnership to take control of the 41-story aluminum-clad tower 666 Fifth Avenue in Midtown, according to two real estate executives who have been briefed on the pending deal but are not authorized to discuss it. Brookfield is a publicly traded company, headquartered in Canada, one of whose major investors is the Qatar Investment Authority.
The acquiring entity would be a Brookfield-managed private real estate fund, the source said.
The Qatar Investment Authority, which invests on behalf of Qatar's government, is the largest owner of the the unit, Brookfield Property Partners LP, according to data compiled by Bloomberg.
TheTimes also reports extensively on the details of the deal: Kushner will settle an $80 million loan with Vornado Realty Trust, his business partner for 666 Fifth which the Timesreports " was not interested in renovating the tower".
Kushner Cos. had earlier talked with a member of Qatar's royal family about investing in the building, 666 Fifth Avenue, Bloomberg has previously reported. Recently Kushner Cos. has lost millions a year on the building due to low occupancy and high mortgage interest payments.
The owners had been intentionally keeping a portion of the building vacant because they were mulling a proposal to partially tear down the building and replace it with a $4 billion condo-retail-and-hotel development designed by late architect Zaha Hadid. The talks are continuing and exact figures are still under discussion, the person said.
The deal was contingent on Kushner being able to land additional financing from other sources, and fell apart when the family company failed to lock in additional financing.
The Kushner Cos. and Brookfield both declined to comment, and the White House and the Qatar Investment Authority did not immediately return requests for comment.
For example, in April 2017, Charles Kushner met with Qatari's Finance Minister, The Intercept reported in March.
Financial terms of the deal were not disclosed, but the arrangement would see Brookfield take over leasing and operations of the 41-story tower and spend hundreds of millions to overhaul the building, executives briefed on the pending deal told the New York Times.
Brookfield would oversee a significant redevelopment of the building if a deal is reached, the source said.