A real estate investment startup co-founded by Jared Kushner skirted New York City laws and earned his company more money than expected when they flipped the properties, according to a report by Bloomberg.
In the company's first-known deal, according to Bloomberg, Cadre sold three rent-regulated buildings for $59 million in April 2017, about an 80% premium over what it paid a little more than two years earlier.
Kushner Cos., Cadre's operating partner at the property, "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," Boomberg reported, citing an earlier story by the Associated Press.
Additionally, Kushner, an adviser to his father-in-law, President Donald Trump, had not divested his holdings in Cadre by last December, according to Kushner's latest financial disclosure report.
Tax records filed by Cadre with New York City claimed the properties had no residents in rent-controlled units, according to the Associated Press, but later tax filings showed nearly 100 residents living in rent-controlled units, which would have been worth less to prospective buyers.