Kushner and CIM look to turn $60 million in profit on a one-year investment.
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Jared Kushner’s Kushner Companies and CIM Group are looking to flip 2 Rector Street in lower Manhattan for as much as $200 million, according to a report in The Real Deal. This would mean a $60 million profit on a building they bought only last year for $140 million, from Laurence Gluck’s Stellar Management and Savanna Real Estate Fund.
The move comes after the owners had been rumored to plan converting the property into apartments.
A 36 story office tower with 466, 000 sq. ft. in rentable office space, 2 Rector Street is strategically situated in the heart of Manhattan’s financial district, just a stone’s throw away from the New World Trade Center. The building occupies the full block on one side of Rector Street, between Greenwich Street and Trinity Place.
The U shaped tower was constructed in 1907, and has an ornate façade, preserved by the Trust for Architectural Easements. It has additional frontage along Trinity Place and Greenwich Street, with views of the Hudson and the historic Trinity Church.
Current rents for office space there are estimated at more than $30 per square foot per year.
Lower Manhattan is one of New York City’s fastest growing submarkets, with an influx of new office, retail, hotel and residential buildings.
Son of developer Charles Kushner, and husband of Ivona Trump, Jared Kushner is the principal owner of his family’s Kushner Properties, a real estate development and holding company. He also owns The New York Observer and has an estimated $200 million net worth.
Mr. Kushner is CEO of Kushner Companies, a diversified private real estate organization involved in the ownership, management, development and redevelopment of numerous properties.
Founded by principal Shaul Kuba, CIM Group is a leading real estate and infrastructure investment firm that, since 1994, has systematically and successfully invested in dynamic and densely populated communities throughout North America. It pursues investment opportunities in three primary strategic categories: repositioning and development projects in established and emerging urban areas; well-positioned operating properties in transitional and established districts; and infrastructure.
CIM manages three distinct portfolios, including opportunistic, stabilized and infrastructure funds, each of which are diversified by geography and type of property within that risk profile. Headquartered in Los Angeles, CIM maintains regional offices in New York, the San Francisco Bay Area and Bethesda, Maryland.