Law firm Akerman has signed a 15-year lease for 100,000 square feet in Mitsui Fudosan America’s 1251 Avenue of the Americas. The firm is relocating from Brookfield’s 666 Fifth Avenue as the building undergoes a $400 million overhaul.
- Dig Deeper: The law firm will occupy the entire 37th and 38th floors of the building located between West 44th and West 45th Streets. It’s also taking parts of the 35th floor. Asking rent on the deal was $95 per square foot, according to TRD.
- The history: Kushner Companies paid $1.8 billion for the property in 2007. Following the recession, the company sold a controlling stake in the retail space for more than $500 million and used most of the proceeds to repay debt. But that wasn’t enough to stabilize the property… In 2011, Kushner brought on Vornado as a 49.5% partner and renegotiated $1.2 billion in debt. More recently, the family bought out Vornado’s stake in the office tower for $120 million giving it complete control of the asset clearing the way for a divestiture.
- Bottom Line: In August 2018, Brookfield Asset Management signed a 99-year lease for the office portion of 666 Fifth Avenue. The deal provided Kushner an upfront sum that allowed the family to pay off the outstanding $1.2 billion mortgage on the property. In addition to extensive renovations, Brookfiled will also change the address to 660 Fifth Avenue.
- Juicy anecdote: When Charles Kushner was sent to prison in 2005, the family asked PR Guru Howard Rubenstein how to rehab the Kushner name. He suggested that Jared buy a newspaper, marry the daughter of a rich New York family, and acquire a trophy asset.
- Jared Kushner listened… He bought the Observer, married Ivanka, and acquired 666 Fifth Avenue.