By Caleb Melby
Cadre, the real estate investing startup co-founded by White House
senior adviser Jared Kushner, was the primary beneficiary of a
property-flipping investment that may have been less profitable if it
had fully complied with New York City disclosure rules about
rent-regulated tenants.
Cadre
owned about 60 percent of three rent-regulated buildings in Queens sold
by Kushner Cos. in April 2017. The $59 million price tag was an 80
percent premium over what they paid in January 2015, property records in
New York show. It was the first known deal that Cadre, then a fledgling
company, took from purchase to sale, and the high rate of return in a
short time was touted as a proof-of-concept for its web-based investing
platform.
Kushner
Cos., Cadre’s operating partner at the properties, told the city the
buildings had no rent-regulated tenants when applying for construction
permits to update the buildings in 2015 but tax records filed later
showed almost 100 such residents, according to a report by the Associated Press. The number of tenants fell precipitously prior to the buildings’ sale, the wire service reported.
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Source: BloombergView (via Empire Report New York)
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