Since Jared Kushner’s move to D.C. and then to Miami, the Kushner family’s real estate business has quietly prospered, with a portfolio now worth $2.9 billion, nearly triple its value when Trump was elected. The entire Kushner family is now worth an estimated $7.1 billion, including Jared’s nascent private equity firm Affinity Partners worth at least $900 million, and Josh’s venture capital firm Thrive Capital worth an estimated $3.5 billion. The rebound of the family real estate business has been largely under the radar, with a focus on unraveling risky bets and a more streamlined strategy.
Charles Kushner, the patriarch of the Kushner family, started building apartments in New Jersey in the 1950s and went on to establish Kushner Companies in 1985 with his son, Jared. The company initially focused on apartments in New Jersey before expanding to office buildings in New York City. During Jared’s tenure, the company made risky bets, including purchasing the 41-story office tower at 666 Fifth Avenue for $1.8 billion in 2007. However, this investment faced challenges during the financial crisis, leading to a nearly half decline in net operating income by 2011.
After Jared joined Trump’s administration, the firm faced financial setbacks and strategic changes were made under the leadership of non-family members, including the selling of assets in New York City and a shift back to apartment development. The firm’s new strategy includes a geographical diversification, focusing on apartments in the Baltimore-Washington metro area, the Sun Belt region, and New Jersey. The firm is now worth $2.9 billion, with investments in over 27,000 units across 15 states.
The Kushner Companies under the leadership of Laurent Morali and Nicole Kushner are focusing on expanding their apartment portfolio, particularly in regions with favorable demographics and tax rates, such as the Sun Belt. They have sold off older assets in New York City, while also developing properties in New Jersey. The company has focused on strategic acquisitions and developments in states like Alabama, North Carolina, Tennessee, and Texas, aiming for better yields in secondary markets.
Despite some setbacks, such as the foreclosure of the Times Square retail property and challenges in the New York City office market, Kushner Companies’ outlook appears positive. The family’s continued success reflects their persistence and ability to adapt to changing market conditions. With a focus on developing upscale apartments in New Jersey and expanding their presence in the South, the Kushners’ real estate empire is poised for further growth, despite potential challenges that may arise in the future.
