​Jared Kushner 'misses the party' on Brooklyn real estate as high-profile project 'ends in disappointment'

​Jared Kushner 'misses the party' on Brooklyn real estate as high-profile project 'ends in disappointment'
Royalty-free stock photo ID: 690212062 White House aide and Donald Trump's son-in-law, Jared Kushner (center), walks on to the South Lawn of the White House to board Marine One, Friday, August 4, 2017.

Former president Donald Trump's son-in-law, Jared Kushner, appears to have "missed the party" on Brooklyn real estate, with his "bet" on luxury spec homes purchased in 2014 ending recently in "disappointment."

The Real Deal, which covers New York City real estate, reported Wednesday that Kushner Companies paid $36.5 million for six former dorm buildings known as the Brooklyn Law School portfolio in 2014 — which represented a discount and "seemed like a savvy deal."

Kushner Companies planned to sell off the portfolio for more than $60 million, but thus far has brought in only $33 million — minus $100,000 it paid to settle a 2017 lawsuit alleging rent overcharges. The company planned to convert three of the buildings into luxury single-family homes and keep the others as multifamily rentals, the site reports.

"Although Kushner sold the three townhomes for $27 million altogether, or $7.25 million more than it paid, that does not account for renovation costs that surely ran into the millions, not to mention transfer taxes and other closing costs, plus property taxes and interest as the homes went unsold for a combined 13 years," the site reported, adding that Kushner Companies "underperformed the luxury residential market — and its own expectations."

The story notes a "stark" contrast between Kushner Companies' results and the overall Brooklyn real estate market. The company's three townhomes sold for one-third less than their initial asking prices, while Brooklyn single-family home prices jumped 11 percent this year, and sales have climbed 42 percent.

Experts blamed poor home design, internal strife and politics.

"Two sources said the Kushners' political profile after Jared Kushner joined President Donald Trump's administration was another factor that drove away buyers," the Real Deal reported. "By the time the two spec homes sold this year, Brooklyn's townhouse market was on fire with buyers racing to outbid each other. Yet Kushner Companies missed the party."

Read more here.

#story_page_post_article

Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal
{{ post.roar_specific_data.api_data.analytics }}

Don't Sit on the Sidelines of History. Join Alternet All Access and Go Ad-Free. Support Honest Journalism.