Jones Lang LaSalle
Kushner Portfolio Could Fetch $2B
By Eric Peterson
FLORHAM PARK, NJ-Kushner Cos. may be on the verge of pulling the trigger on one of the biggest real estate deals ever in New Jersey. According to published reports, the company is mulling the sale of its Westminster Management division, which consists of some 17,500 rental apartments in 90 properties in several states, and the final number could be in the $2-billion range.
"There have been offers received for the Westminster apartment portfolio of the Kushner Cos., consisting of 17,500 garden apartment units," Clive Cummis, the company’s acting vice-chairman confirms for GlobeSt.com. "They started a process whereby Goldman Sachs has been engaged to advise the company with respect to these offers."
Sources say that process began with four unsolicited offers, including two from REITs and one from a banking institution. Cummis will only confirm that the number of offers is "in that area," and declined further comment on the nature of the bidders.
Cummis does confirm that the bids amount to approximately 40% of Kushner Cos.’ total holdings. Not included are several major development projects currently under way, including residential condo and mixed-use properties in Perth Amboy, Asbury Park and Atlantic City, plus New York City and Port Jervis, NY. Kushner also owns and/or manages some five million sf of office, industrial and retail space, similarly not part of the offers.
Asked about deciding factors on whether the company will sell its rental portfolio, and to whom, "price," Cummis tells GlobeSt.com. Cummis, an attorney, is part of a management team including fellow attorney and acting chairman Alan Hammer, put in place to run Kushner Cos. in 2004 when founder and chairman Charles Kushner was indicted on charges of witness tampering relating to federal campaign-finance and tax violations. Kushner is currently completing a two-year jail sentence at a halfway house in Newark and is slated to return to the company in September. Company officials say they have not discussed the bids with Kushner and would not until his sentence is completed. For previous articles on the issue, click here.
By then, a deal might already be done. Asked about a possible timeline, "no decision has been made and the offers are being considered," Cummis tells GlobeSt.com. "A decision would probably be made within the next 30 to 45 days."
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission
Kushner Portfolio Could Fetch $2B
By Eric Peterson
FLORHAM PARK, NJ-Kushner Cos. may be on the verge of pulling the trigger on one of the biggest real estate deals ever in New Jersey. According to published reports, the company is mulling the sale of its Westminster Management division, which consists of some 17,500 rental apartments in 90 properties in several states, and the final number could be in the $2-billion range.
"There have been offers received for the Westminster apartment portfolio of the Kushner Cos., consisting of 17,500 garden apartment units," Clive Cummis, the company’s acting vice-chairman confirms for GlobeSt.com. "They started a process whereby Goldman Sachs has been engaged to advise the company with respect to these offers."
Sources say that process began with four unsolicited offers, including two from REITs and one from a banking institution. Cummis will only confirm that the number of offers is "in that area," and declined further comment on the nature of the bidders.
Cummis does confirm that the bids amount to approximately 40% of Kushner Cos.’ total holdings. Not included are several major development projects currently under way, including residential condo and mixed-use properties in Perth Amboy, Asbury Park and Atlantic City, plus New York City and Port Jervis, NY. Kushner also owns and/or manages some five million sf of office, industrial and retail space, similarly not part of the offers.
Asked about deciding factors on whether the company will sell its rental portfolio, and to whom, "price," Cummis tells GlobeSt.com. Cummis, an attorney, is part of a management team including fellow attorney and acting chairman Alan Hammer, put in place to run Kushner Cos. in 2004 when founder and chairman Charles Kushner was indicted on charges of witness tampering relating to federal campaign-finance and tax violations. Kushner is currently completing a two-year jail sentence at a halfway house in Newark and is slated to return to the company in September. Company officials say they have not discussed the bids with Kushner and would not until his sentence is completed. For previous articles on the issue, click here.
By then, a deal might already be done. Asked about a possible timeline, "no decision has been made and the offers are being considered," Cummis tells GlobeSt.com. "A decision would probably be made within the next 30 to 45 days."
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission
posted by Jones Lang LaSalle NJ News Blog at 12:11 PM
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