The Slatest

Kushner Firms in Talks for Federal Loan to Finance $1.15 Billion Purchase

A Kushner Companies logo is visible near an entrance to the Kushner Companies' flagship property 666 Fifth Avenue in Midtown Manhattan, March 6, 2018 in New York City.
A Kushner Companies logo is visible near an entrance to the Kushner Companies’ flagship property 666 Fifth Avenue in Midtown Manhattan, March 6, 2018 in New York City.
Drew Angerer/Getty Images

The real estate company owned by the family of President Donald Trump’s son-in-law Jared Kushner is trying to get a little help from federally owned lenders for its biggest purchase in a decade. Bloomberg has heard word that the Kushner Companies is currently in talks with Fannie Mae and Freddie Mac about a loan for a $1.15 billion purchase of rental apartments in Maryland and Virginia.

Jared Kushner has divested from many of the company’s assets when he joined the government. At the time, the company had more than $500 million in loans from the federally owned lenders, and now this latest deal could more than double that amount. Even though the Kushner Companies insist Kushner “is walled off” from what goes on in the business, that doesn’t mean influence couldn’t work in other ways. Bloomberg points out that Trump’s appointee at the Federal Housing Finance Agency, which regulates the federally owned lenders, is an ally of Treasury Secretary Steven Mnuchin. And Mnuchin is an ally of Kushner in the West Wing.

The deal by the Kushner Companies had already been reported as a sign that the company was rebuilding its rental portfolio after it divested half of its apartment portfolio more than a decade ago. The Kushner Companies said it planned to borrow around 70 percent of the acquisition cost.