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Monday, November 16, 2009

7

666 Fifth Avenue Really is the Devil

LADY SEE LADY DOIvanka Trump has declared Twitter-war against Crain's-it's like a thumb war, but less lethal-over a profile of the Trump-Kushner business and romance union. She called the article "misinformed and pointless," which is just another sign of how smart she is: a dumb person would have called it "inaccurate," which would mean then that we would have to go through to show how all the facts were actually facts. (Although she has suggested that the Observer's real estate paper has "stolen" all of Crain's advertisers, which, *cringe*.) So, to the facts? They cover the $1.8 billion Kushner purchase of 666 Fifth Avenue. "The building's rents never covered debt service, according to Manus Clancy, senior managing director at Trepp, which tracks real estate debt. That situation has only worsened as office rents have collapsed over the past two years. A law firm that leases about 15% of 666 Fifth has announced that it is leaving, which will leave a huge gap at a time when big corporate renters are scarce." This is the nicest possible coverage of what is going on at 666. For instance, this summer, 666's consortium had to pay nearly $12 million to a bankrupt tenant. But even that's way less money than they're not making each month with their enormous and apparently permanent ground floor retail vacancy (which was sold off to the Carlyle Group). Basically the only way to make money off this investment is to call in Godzilla to step on the building.

7 Comments / Post A Comment

fek
fek (#93)

I know a guy, who knows a guy, who knows a Japanese monster that can take care of this thing for you.

Choire Sicha

From the mortgage doc:

"Citibank N.A. has 17 different leases that expire between August 31, 2007 and August 31, 2014. 77,806 square feet will expire in 2007, 75,596 square feet will expire in 2009, and 211,668 square feet will expire in 2014."

Choire Sicha

And in 2010, 27.7% of the total square footage is up for renewal. Or new tenants. Or vacancy.

HiredGoons
HiredGoons (#603)

I see they're following 'The Plaza Hotel' business model.

Rasselas
Rasselas (#1,797)

It's not a particularly nice building inside, as I recall.

katiechasm
katiechasm (#163)

Someone get Thayer Core on this.

lawyergay
lawyergay (#220)

This is O/T but every time I read about 666 Fifth, I can't help but remember this sheep shearing demonstration I attended about 5 years ago. The guy who was doing the shearing (surprisingly bloody!) kept bragging about how he sold his heirloom breed of lamb to "all the best New York restaurants, like 'Top of the Sixes.'" He must have said this about 10 times, except the only New York restaurant he ever mentioned was Top of the Sixes, which had closed about 5 years earlier.

Did I mention that he seemed pretty hammered?

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