The sale of 666 Fifth Avenue, the building purchased by the Kushner Companies just back in January for $1.8 billion dollars, is now being held up as an example of the bygone crazy financing of yesterday. (Remember early 2007? Wasn't it nuts?) The Kushner family got an interest-only mortgage for $1.215 billion—that's the kind of mortgage the poor people get too! But the mortgage was based on potential projected rental income rates, not the insanely cheap leases that currently exist—and the retail space is locked in for another seven years. So the building's shortfall between its mortgage and its income is just $5 million a month. (This will really add up as the years go by.) So to keep the building, the company is using its own cash to pay back things like $200 million bridge loans! [NYT]
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The sale of 666 Fifth Avenue, the building ... [High Finance]
Posted: November 7th, 2007, 11:30am CST
Tags: 666 fifth