Kushner Companies scraps planned Orthodox Jewish community in Jersey City
UPDATED, May 10, 12:30 p.m.: Kushner Companies was the leading bidder on an industrial site called Bayfront in Jersey City that would become home to a planned Jewish community geared toward members of Orthodox sects who are being priced out of Williamsburg, Brooklyn.
But when Bloomberg reporters asked company spokesperson James Yolles about the bid on Tuesday, Yolles said that the company already dropped any intentions it had to buy the site from Honeywell and Jersey City for $150 million. An unnamed Kushner employee also told the news site that these plans were dropped late last year, but the office of Jersey City Mayor Steven Fulop said it was unaware of this and has yet to receive any word of Kushner’s withdrawal from consideration.
It’s unclear if the Kushners decided to abandon the project for ethics reasons, but Honeywell, a Fortune 100 list conglomerate, has billions in government contracts that could prove tricky in any dealmaking tied to the Kushners. The development would likely also require federal subsidies to improve the infrastructure within and surrounding the site. “It’s a good sign that they are pulling out,” Larry Noble, general counsel of the Campaign Legal Center, told Bloomberg. “Though the question is whether or not it’s just because of the publicity or because they actually see there is a potential conflict of interest in these situations.”
In a statement to The Real Deal, Yolles said “a decision was made late last year not to pursue the project because the company was not persuaded by the economics of the deal.”
Last weekend, the company made front page news when White House senior adviser Jared Kushner’s sister Nicole promoted a Jersey City project at One Journal Square to Chinese investors. The sales pitch made mention of Kushner Companies’ ties to the White House and Nicole told the audience the project was “important” to her entire family. It was later reported that the project in question is going through a rough spot, losing an anchor tenant in WeWork and at risk of losing a key 30-year tax abatement. [Bloomberg] — Will Parker
To read the article in TheRealDeal click here.
National Real Estate Investor: http://www.nreionline.com/investment/kushners-abandon-property-bid-pressures-mount-over-conflicts