The building, owned as a joint venture between Kushner and the CIM Group, has been sold to real estate investment trust General Growth Properties who paid out more than $150 million in cash for the pleasure of being Penney’s landlords.
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200 Lafayette Street
Jared Kushner will be a happy man after clinching the sale of the property on 200 Lafayette Street in Lower Manhattan, New York.
Kushner and his partners at CIM, Shaul Kuba, Avi Shemesh and Richard Resller were reported to have received between $150 and $170 million for the building making for a tidy profit having purchased the building from Zaccaro family for just $50 million in 2011, later investing around $30 million on a major refurbishment for the property.
The buyers, General Growth, based in Chicago own a total of 128 million square feet of commercial property spread out across 123 shopping malls in the United States. The purchase of the building on Lafayette Street is only the second incursion into the greater New York property market, with the group already owning a shopping mall in Staten Island.
General Growth went into the deal knowing that JCPenney is holding a triple-net, lease with more than 13 years remaining almost all of the property’s office space, a total of 127, 559 square feet. Penney will be paying plus roughly $60 a foot for the office space plus expenses and property taxes, with a 2 percent yearly increase agreement in place, guaranteeing the new owners an income of around $750, 000 annually.
They can enjoy a better return on their investment if they succeed in renting the additional 16, 130 square feet of office space lying vacant on the sixth floor, as well as the retail space on the ground floors which is mostly empty, and for which the General Growth can expect to bring in around $90 per square foot.
Jared Kushner was born and raised in New York. Kushner received his high school education at the Frisch School, a private, coed yeshiva, going on from there to study as an undergraduate at Harvard University and later graduate from the New York University Stern School of Business as a Juris Doctor. Kushner completed his university education by earning his MBA degree at the New York University School of Law.
Even as a student Kushner was active in the Boston real estate market, and since graduating has considerably increased the Kushner Companies’ presence in the New York City real estate market, in his role as principal of the considerable real estate owned by his family.
In July 2006, when aged just 25, Kushner acquired the New York Observer, the well known weekly newspaper, paying just $10 million. Since taking control of the Observer, Kushner has made some dramatic upheavals, creating a whole new focus for the Observer that have gone a considerable way in increasing circulation and sales , as well as increasing stabilizing the paper’s online presence. Since moving into the world of media Kushner has expanded the Observer Media Group through a combination of innovations and acquisitions.
Jared Kushner married Ivanka Trump, daughter of businessman Donald Trump, in October 2009.