Kushner Cos., the family-owned real estate company that President Donald Trump’s son-in-law Jared Kushner used to run, was in the news a couple of months ago after having purchased a 1,032-unit apartment complex in Plainsboro, New Jersey, known as the Quail Ridge Apartments, for $146 million.
Now, a new report is making a big deal out of the fact that the sale is partially funded by an Israeli company.
The Kushner family business has substantial business and philanthropic ties with Israel and has made deals with several of the country’s financial firms, many of which are listed as partners and lenders on its website.
According to a report in Bloomberg on Monday, Psagot Investment House isn’t represented on that list, but along with another unnamed buyer, the Israeli company helped Kushner Cos. finance this latest acquisition. Psagot is Israel’s largest asset manager, but this is the first time the two companies have worked together.
The deal is a curious one, notes Bloomberg, because it requires the buyers “to take on an existing loan with onerous conditions.”
Kushner, previously the company’s chief executive officer, had sold the same apartment complex 10 years earlier.
The article went on the speculate that “the purchase may be part of a recalibration away from pricey New York and back to large, provincial multifamily properties that generate management fees and steady revenue. This year, the family backed out of buying a Brooklyn hotel, sold a stake in a nearby office building and unloaded rental buildings in Queens, while buying out a partner in a portfolio of Maryland apartments.”
Since joining the Trump administration as a top adviser, Jared Kushner has taken on an ambitious portfolio of responsibilities, including overseeing an attempt to revive Israeli-Palestinian peace talks. Even though he divested from many of his properties by selling his shares to family members, ethicists have raised concerns that Kushner Cos.’ business ties to Israel could pose conflicts, according to the report.
It goes on to explain that Quail Ridge was one of the properties that made Jared’s father, Charles Kushner, rich, “propelling him to a perch as a kingmaker in New Jersey Democratic politics in the 1990s.”
The article revealed that the elder Kushner was convicted of witness tampering, illegal campaign contributions and tax evasion in 2005, noting that “the family decided to make its mark in New York with the purchase of 666 Fifth Avenue in what Jared called ‘Kushner 2.0.’ Quail Ridge was among the properties sold to finance the acquisition.”
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