A $285 million loan taken out by the Kushner Cos. will require a renegotiation of terms after the firm’s tenants broke their leases, the real estate company said on Friday, Bloomberg News reported. The loan was issued by Deutsche Bank AG in 2016 to allow the firm to refinance six floors of retail space in the former New York Times building. Rent income at the property is falling short of interest payments, according to an analyst note this week on behalf of Wells Fargo & Co., which is managing the loan. The loan was being transferred to a so-called special servicer, which typically oversees such deal talks, according to the note. The loan isn’t in default and hasn’t yet moved to special servicing, Wells Fargo said in a statement. Months of troubles at the building have taken their toll. Kushner has engaged in legal battles with tenants and also issued significant rent reductions. Last month, one of the largest tenants filed for bankruptcy. Kushner Cos., the family company of presidential son-in-law Jared Kushner, purchased the space at 229 West 43rd Street for $296 million in 2015. A year later, after signing up new tenants, the company received a $470 million appraisal for it, which underpinned a $370 million loan package that also allowed the family company to take out $59 million in cash. The annual interest payments left the company little room to absorb tenant exits or rent reductions.
