Kushner Cos. Loans for $100 Million Scooped Up by Korean Firms
(Bloomberg) -- Two South Korean financial firms have bought $100 million of debt on a New Jersey residential building that’s part-owned by the family of Jared Kushner.
Nonghyup Bank and trusts affiliated with IGIS Asset Management purchased junior pieces of a $200 million loan made by Citigroup Inc. on 65 Bay St., an apartment tower in Jersey City, Kroll Bond Rating Agency said in a research report Thursday.
Prior to receiving the Citigroup loan earlier this year, Kushner Cos. and its partner in the building, KABR Group, had trouble finding a firm to refinance more than $180 million of loans, including expensive construction debt and $50 million held by Chinese investors. Kushner Cos. had drawn criticism for pitches to Chinese investors that alluded to its White House ties. Jared Kushner is son-in-law and senior adviser to U.S. President Donald Trump.
A spokeswoman for Kushner Cos. and a representative for Citigroup declined to comment. A representative for Nonghyup in New York referred questions to offices in Seoul, where calls weren’t answered outside of normal business hours. A representative for IGIS didn’t respond to an email outside of normal business hours.
As of March, Jared Kushner still held a stake in the property through a trust. His lawyers have said he doesn’t discuss deals or investments in his family’s businesses since starting his White House job.
Nonghyup purchased a $60.4 million piece of the 65 Bay St. loan and IGIS U.S. Private Placement Real Estate Investment Trust No. 169 bought $39.6 million, Kroll said. Nonghyup’s deal was on behalf of another IGIS trust, for which it serves as a trustee, according to a filing from Citigroup.
Bloomberg reported the $200 million Citigroup loan in March. The remaining $100 million is being placed into commercial mortgage-backed securities.
The Jersey City tower is part of a complex near the Hudson River waterfront known as Trump Bay Street. The Trump name is used under license and neither the president nor the Trump Organization owns a stake in the complex, according to the property’s website.
©2018 Bloomberg L.P.