Kushner family escapes burden of 666 Fifth Ave. via 99-year lease agreement with Brookfield

The Kushner family has closed on a deal to unload its office tower at 666 Fifth Avenue, a building it bought at the top of the market that was ailing financially.

In a larger-than-expected deal, the New York real-estate family has agreed to lease the building to Brookfield Asset Management for 99 years, according to a Brookfield statement that confirmed earlier reporting by the Wall Street Journal.

The tower has been under scrutiny because Jared Kushner is married to President Trump’s daughter, Ivanka Trump, and is a senior adviser to the president. The $1.8 billion investment by Kushner Cos. was a record at its 2007 purchase and was made when Kushner was taking a leadership role in the business. It remained precarious for years, and potential deals became complicated after Kushner took the senior White House job.

Talks between Brookfield

BAM.A, +0.09%and Kushner Cos., the family company, about Brookfield possibly purchasing a stake in 666 Fifth were reported earlier this year. Several possible deal structures were contemplated until the two sides opted for the Kushner sale of the 99-year lease, a fairly common commercial real-estate structure in Manhattan.

Terms of the deal weren’t disclosed. People who have been involved in the talks have said that the proceeds would give the family enough to pay off the more than $1.1 billion of debt on the building and buy out its partner, Vornado Realty TrustVNO, +1.34% , for $120 million so it can transfer 666 Fifth to Brookfield unencumbered.

An expanded version of this report appears at WSJ.com.

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