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Jared Kushner's family-owned real estate business is seeking federal funding for a $ 1.15 billion real estate deal, reports Bloomberg.
Kushner Cos has been in talks with federal lenders Fannie Mae and Freddie Mac about supporting his purchase of more than 6,000 rental apartments in 16 properties in Maryland and Virginia at private equity firm Lone Star Funds, said two sources at Bloomberg. We do not know how much money the company is looking for.
It's the company's biggest deal for more than a decade, the Wall Street Journal reported.
Kushner Cos chairman, Laurent Morali, told the newspaper that the company was planning to borrow about 70% of the cost of the Lone Star package. He said that Kushner Cos. Had put in place a competitive process to choose a lender, reported the newspaper. Morali apparently did not mention federal lenders in the Journal.
President Donald Trump's son-in-law relinquished his role as a director at Kushner Cos and divested himself of some of the assets of the family business when he became a senior advisor to the White House. According to Bloomberg, the company held more than $ 500 million in loans from Fannie Mae and Freddie Mac.
But Kushner remains a key player in the company and real estate transactions. The real estate holdings and other investments of Kushner and his wife, Ivanka Trump, were worth up to $ 811 million last year, according to financial reports filed in 2018.
Peter Mirijanian, spokesman for Jared Kushner's lawyer, Abbe Lowell, told Bloomberg that Kushner no longer managed the company, adding that he was "isolated from any commercial or investment decision. and that he had no idea or knowledge of these activities ".
Fannie Mae and Freddie Mac are regulated by the Federal Housing Finance Agency, headed by Joseph Otting, appointed by Trump. He was CEO of OneWest Bank, founded by Treasury Secretary Steven Steven Mnuchin, who is considered a close "Kushner ally" at the White House, Bloomberg points out.
The properties of Kushner Cos have been the subject of several lawsuits. The State of New York is investigating charges of tenants alleging that they were illegally evicted from their apartments in a Brooklyn building owned by Kushner Cos. Thus, their homes could be sold as luxury condos.
Last year, New York City fined the company $ 210,000 for filing false construction documents stating that there were no tenants in rent protected in apartments that the company was planning to sell.
The Attorney General of Maryland has also initiated an investigation into the operations carried out in some apartment complexes located in the Kushner Cos area. Baltimore, following a lawsuit filed by tenants, accusing the company of charging them improper fees.
The representatives of Kushner Cos. Have denied any wrongdoing.
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