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  #141  
Old Posted Oct 16, 2017, 8:31 PM
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Very interesting anonymous comment:
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Not only is their equity wiped out, a loan default could potentially wipe out the Kushner's family fortune entirely. In the event of default (loan matures Feb 2019), the lenders already have the deed in escrow to take possession of the asset. Back in 2009 when I was a Jr. Analyst researching CMBS tranches, this loan was the worst performer of its pool by a mile. If they hadn't condo'ed, sold the retail portion of the building to pay down principle, and partnered with Steve Roth (I'm sure at at a massive discount to purchase price of the asset), they would have defaulted years ago.

Here's a great article explaining the dire nature of the building. A little long, but great reade's a great article explaining the dire nature of the building. A little long, but great read if you have time:

www.bloomberg.com/graphics/...
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  #142  
Old Posted Oct 31, 2017, 6:01 PM
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Asked about Kushner Companies’ plans to redevelop 666 Fifth Avenue, which it owns with Vornado, into a multi-billion-dollar condo and retail tower, Roth said “it’s likely those are not feasible” and that the tower will remain an office building. “It’s overleveraged, which is an issue,” Roth said, but claimed that the company isn’t too concerned because it paid little money for its stake in the office portion. “We look upon it as if it’s a mezz loan warrant,” he said.
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  #143  
Old Posted Oct 31, 2017, 6:38 PM
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So, the 1.400ft tower will no longer be built?
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  #144  
Old Posted Oct 31, 2017, 7:44 PM
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So, the 1.400ft tower will no longer be built?
Who knows? A decision hasn't been made.
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  #145  
Old Posted Nov 10, 2017, 8:25 PM
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It would be cool if they did.
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  #146  
Old Posted Nov 11, 2017, 12:41 AM
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I have my doubts about this one at the moment. Best to wait it out. I think something will rise, but IDK if it will be the original plan. Again, best to wait it out. There are other fish in the sea the moment to focus on.
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  #147  
Old Posted Feb 13, 2018, 4:26 AM
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https://therealdeal.com/2018/02/12/v...-in-666-fifth/

Vornado officially plans to sell its stake in 666 Fifth
CEO Steve Roth hinted that this was coming in April shareholder call


By Will Parker
February 12, 2018


Quote:
Vornado Realty Trust plans to sell its 49.5 percent stake in Kushner Companies’ Midtown office tower at 666 Fifth Avenue, according to an annual performance report it filed with the U.S. Securities and Exchange Commission.

Kushner Companies has eyed a grand renovation and redevelopment of 666 Fifth into a 1,400-foot tall luxury condo, hotel and retail center, but has struggled to find the necessary financing. Vornado was well known to not be keen on the idea, with Roth saying just last fall that it was “likely not feasible.”
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  #148  
Old Posted Feb 13, 2018, 11:44 AM
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Ross was an obstacle to redevelopment, so I'm pleased that he's selling.

I suspect that Kushner will lose this tower in a foreclosure, but hopefully, the new owner will redevelop it.
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  #149  
Old Posted Feb 14, 2018, 2:00 AM
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Kushner Companies needs to have very little stake in this. Kinda shaky right now, and the whole political climate doesn't help.

In the end, this address is a fine whiskey. Let it sit, age, and it only becomes a richer opportunity when the time is right.

Ideally, both stakeholders sell, one is going to be out soon, and just let it go on the market again until the moment comes where it can shine.
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  #150  
Old Posted Feb 14, 2018, 2:31 AM
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Quote:
Originally Posted by chris08876 View Post
Kushner Companies needs to have very little stake in this. Kinda shaky right now, and the whole political climate doesn't help.

In the end, this address is a fine whiskey. Let it sit, age, and it only becomes a richer opportunity when the time is right.

Ideally, both stakeholders sell, one is going to be out soon, and just let it go on the market again until the moment comes where it can shine.
I agree, Chris.

This is an old, inefficient building. It will never be trophy office space, despite its location. However, its location would make it a super prime hotel/residential tower.

I'd be happy to see it reskinned with a limestone and brick facade and converted to condos and a seven star hotel.
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  #151  
Old Posted Feb 14, 2018, 3:24 AM
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Could be. The Foster case study of 425 Park could very well manifest (probability) depending on how much demand there is. Its in a prime location.



With a height of 483′, its kinda underwhelming. With its large floor area, I think it would be a reduction in magnitude of what it could be.

It was bought for something close to 2 billion. A hotel portion could help with the revenue, some retail, maybe even some condos or rentals, but I do hope that it is stacked even further higher. I'd be a loss of potential with this property.

425 Park or 380 Madison come to mind where they stack a new tower a top of an existing one. Manhattan has become so land restrictive bar the West Side that we should expect many more 380 Madison developments in the future.
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