(Bloomberg)—A unit of Brookfield Asset Management Inc. is considering injecting as much as $700 million of new equity into 666 Fifth Ave. as part of a proposed effort to rescue Kushner Cos.’ indebted Manhattan office tower.
The plan also calls for $1 billion of floating-rate debt as part of a deal to retire the $1.2 billion mortgage that’s due in February, according to a person with knowledge of the matter, who asked not to be named because it is private. Commercial Mortgage Alert first reported the details.
Brookfield has been in talks to take a roughly 50 percent stake in the property, but the new capital it plans to invest would likely command a greater share. Vornado Realty Trust, Kushner Cos.’ current partner in the building, bought a 49.5 percent interest in it for $80 million in equity, plus the assumption of debt, in 2011. Vornado said this month it is selling its stake back to Kushner Cos.
Kushner Cos. bought the tower for a record-setting $1.8 billion at the height of the real estate boom in 2007.
A representative for Brookfield declined to comment. A spokeswoman for Kushner Cos. didn’t immediately have comment.
To contact the reporters on this story: Caleb Melby in New York at [email protected]; Scott Deveau in New York at [email protected] To contact the editors responsible for this story: Jeffrey D Grocott at [email protected] Peter Jeffrey, Christine Maurus
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