Kushner Cos. continues to pare down its East Village portfolio "as part of a sweeping exit from the neighborhood that launched the career of its former chief executive, Jared Kushner," as
Crain's put it on Friday.
The latest to go: 318 E. 11th St. between First Avenue and Second Avenue (above, left), and 99 E. Seventh St. between Avenue A and First Avenue. Public records show that Sky Management Corp. paid $11.2 million for the buildings with 33 residential units.
How did Kushner fare on these investments? To Crain's:
The firm broke about even on 318 E. 11th, selling the 6-story, 18-unit mixed-use site near Second Avenue for $7.6 million this month after paying $7 million for it in 2012, the register shows. A two-bedroom there that leased in August was advertised for about $5,000 per month.
But Kushner Cos. incurred a significant loss with 99 E. Seventh, a 5-story, 17-unit multifamily building near First Avenue that went for $3.6 million after costing $5.1 million in 2012, according to deeds. A two-bedroom there was listed this month at $4,200.
Most recently, the real-estate development firm sold six EV buildings: the four contiguous properties at 329, 331, 333, and 335 E. Ninth St. between First Avenue and Second Avenue ($26.9 million), and 516 and 518 E. 13th St. between Avenue A and Avenue B ($11 million).
Back to Crain's:
With the deals, the firm has sold about 60% of its East Village portfolio, which at its peak about a decade ago totaled roughly 40 buildings between East Houston and East 14 streets, and Avenue B and Third Avenue, according to a Crain's analysis. Today, by contrast, Kushner Cos., which often invested alongside partners, appears to own just 15 sites, including 201 E. Second St., 500 E. 11th St. and 165 Ave. A., based on public records.
The publication
previously pointed out that the exit is due, in part, to the "rules passed as part of pro-tenant reform laws in 2019 have made it more difficult for landlords of rental sites to run the traditional playbook of converting regulated units into pricier market-rate versions. Some landlords have blamed those reforms for stifling the investment sales market."
