Kushner Cos. Defaults On Major Times Square Retail Property

Kushner Cos. Defaults On Major Times Square Retail Property

Kushner Cos defaulted on mortgage payment on Times Square retail property Kushner bought the property in the old New York Times Building in 2015 for $295M from Putin ally Lev Leviev and with $285 loan from Deutsche Bank

Kushner Cos. failed to make this month’s mortgage payment on the retail space in the old New York Times building, after they were late on the payments for November, January and February, Crain’s New York Business reported. In addition to the $200M senior mortgage, the company took out an $85M mezzanine loan on the property with two real estate companies, SL Green and Paramount Group. While an SL Green spokesperson told Crain’s that it has divested from the loan, it and Paramount indicated they would look to take control of the property before letting it go into foreclosure, according to CMBS tracking firm Trepp. Kushner bought the property in 2015 for $295M, when it was being run by then-CEO Jared Kushner. The company is now being run day-to-day by founder Charles Kushner. Over the past year, the attraction Gulliver’s Gate, which rented 45K SF, closed after its parent company went out of business, and another tenant is paying reduced rent, Crain’s reports.

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