Jared Kushner allotted a budget of $7.5 billion to change a Manhattan tower completely. Ivanka Trump’s husband eyed the skyscraper on 666 Fifth Avenue for this transformation. The project will begin with the demolition of the building. Kushner will raise in its place a high-end block of residences with access to in building retail stores. However, Kushner’s business partner doubts the success of such a property revamp.
Kushner Wants to Double the Height of the 666 Fifth Avenue Property and Turn It into a High-End Hotel
Steven Roth is chairman of company Vornado Realty Trust. He shares with Jared Kushner rights over the Fifth Avenue building.
On Tuesday, Roth claimed that Kushner’s rebranding plans are unlikely to succeed. He believes the mission relies too much on major changes. The bigger the risks are taken in this business, the more vulnerable the feasibility becomes.
“I think that something that requires heavy development on the site would be poorly received by shareholders.”
Roth’s doubts might turn into serious hurdles with the power to impair Kushner’s plan. Roth owns 49.5% of the offices and will have a saying in the restoration of the real estate. In the meantime, Kushner is willing to spend $7.5 billion in doubling the height of the building and turning it into a top-notch hotel.
Donald Trump’s son-in-law believes this transformation would help the property escape its debt of $1.2 billion. The building has been losing valuable customers for years.
Kushner and His Financial Moves Are Under Mueller’s Radar
Roth’s view on this business is not without foundation. The businessman has been trying to keep the project alive, while Kushner was in talks with investors. On the other hand, interested parties are hesitant in supporting Kushner as special counsel Robert S. Mueller III is reviewing all his financial moves.
Mueller is interested more in uncovering the connections Kushner grew with investors in China and Qatar. Businesspersons from these countries are usually under the influence of their governments. On top of that, Kushner admitted to meeting with a Russian banker only weeks before Trump’s win of the presidential seat.
In the meantime, Roth is considering plans to revive the 66 Fifth Avenue skyscraper to its former glory. To him, it would be more feasible to decide on small changes in order to reach a better return on investment.
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