definitely on of the projects with the most potential in NYC. How insanely amazing would it be to se 1400 footer Zaha in NYC.
this is really a cant miss location. While I am fine with what is currently there I definitely will not be sad to see it go for a 1400 modern tower. Only negative is it is so close to 30 Rock it will obscure the views a bit that direction.
I am 99% sure this is not the tower they are referencing re: Zaha.
Let’s hope that this plan is not dead.
“At 666 Fifth, the devil’s in the details: No building in Kushner Cos.’ portfolio has generated headlines quite like 666 Fifth Avenue. In 2007, Jared Kushner led the family firm into a $1.8 billion deal for the property. The purchase broke records and made Kushner Cos. a player in Manhattan, but it also nearly brought the firm down: Kushner rescued the deal by persuading the banks to restructure the debt and by bringing in Vornado as a partner. In July, the building popped back into the spotlight, when it was revealed that a dispute over it had pushed Kushner into commissioning a hit piece on Richard Mack, whose firm held some of the tower’s debt.
And on Saturday, the Times reported, now President-elect Donald Trump’s closest adviser, has been in talks with Anbang chairman Wu Xiaohui about a possible joint venture on the property. The Chinese insurer, which owns the Waldorf Astoria, has come into scrutiny about its ownership structure and its close ties to the Chinese government. Kushner’s business relationship with Wu, given his influence on the upcoming administration, makes some queasy.
According to Kushner’s spokesperson, he will divest himself of his personal stake in the building. But since his firm has no plans to sell the property, it’s unclear what that will look like. Kushner will also, according to his attorney, resign as CEO of Kushner Cos., a move that will put more responsibility on the shoulders of Laurent Morali, the firm’s recently appointed president. And, it appears, on his father, Charlie Kushner.”
Another article in the NYT:
Anbang to buy stake in Kushner’s 666 Fifth, valuing tower at $2.85B
Chinese insurer will take out $4B loan for condo conversion
March 13, 2017 12:54PM
From left: Jared Kushner, 666 Fifth Avenue and Anbang’s Wu Xiaohui
Anbang Insurance Group is buying a stake in Kushner Companies and Vornado Realty Trust’s 666 Fifth Avenue in a deal that values the office tower at $2.85 billion. The Chinese insurer is also seeking a $4 billion construction loan to turn the building’s top floors into luxury condominiums, according to Bloomberg. That loan, if received, would be the largest-ever construction loan for a single property in New York.
Documents sent out to prospective investors claim the finished building will be worth $7.2 billion, according to Bloomberg. It’s not clear how Kushner Companies arrived at that figure – the GM Building, long considered the most valuable office tower in the U.S., is valued at just $3.4 billion.
Kushner Companies will keep a 20-percent stake in the 41-story, 1.5 million-square-foot property and get $400 million in cash from Anbang. Vornado, which bought a 49.5-percent stake in the then-distressed office component in 2011 for $85 million and took over the tower’s retail space a year later, will sell its stake for a ten-fold profit in the office component and a doubling of its investment in the retail, according to Bloomberg. Anbang and Kushner are seeking for further equity partners to pump another $100 million into the new partnership.
The new partnership will refinance a $1.15 billion mortgage and seek to raise $850 million in EB-5 funds for the condo conversion – among the largest-ever sums sought for a single property.
“This is a huge, huge exit strategy for an office building,” Joshua Stein, a real estate attorney told Bloomberg. “It does sound like a home run of a transaction for Kushner and his group.”
The EB-5 program, which grants visas to foreigners who invest in certain real estate projects, is up for renewal but faces heated opposition from both parties. Jared Kushner, who left the family company in January to join the White House as an adviser, said he will recuse himself from talks about the visa.
Kushner bought the building for a record $1.8 billion in 2007, but almost lost the property in the wake of the global financial crisis before Vornado jumped in with much-needed capital. [Bloomberg] — Konrad Putzier
Nice. I guess China isn’t so bad after all.
I agree, Tec.
Something is wrong in the reporting.
I hope they still go with the Zaha design.
$4b can’t be a construction loan though. That seems way too high for demo and construction.
I smell another Vanderbilt.
I wonder if this will rise in a similar manner to 425 Park? Versus just to demo the whole structure, but instead, to add on to it.
Never mind I answered by own question.
In Midtown, Kushner Companies and Vornado Realty Trust are considering re-stacking 666 Fifth to 1,400 feet, and repurposing it to residential and hotel.
If your “Most Beloved” HY 50 costs, around $3.85 Billion along with 1 and 2 WTC predicted to have similar capital construction costs this would not be surprising if it had similar SqFt figures.
Good point, Tower Dude. This tower and 38 CPS will be The Best buildings in NYC!!!’
The world capital.
When do you guys think this will rise?
The office tenants are largely out, but I think that some remain with leases until around 2018.
The total air-rights of 666 5th Avenue’s site is actually less than half than those super-buildings: 1.24 million sq. ft.
If they purchase the air-rights that 21 W 52nd St has left (53,990 sq. ft.) which are the only remaining in the block, they will have a total of 1.3 million sq. ft available. So this one will be very skinny and very luxurious…
^^^Those numbers are according to MASNYC.
But Kushner Companies advertises it as 1.6 million sq. ft.
Something amazing will rise here!!!
Beautiful old mansions were razed to accommodate the heinous tower that now infests 666 Fifth Ave. I want a masterpiece to rise there in order to assuage the loss.