A bank that had been under federal investigation until last year has played a role in two recent real estate transactions involving Kushner Companies, Jared Kushner’s family company.
Earlier this month, BofI Federal took over a mortgage previously owned by the Kushner Companies for a development in Brooklyn, New York City real estate filings show. The previously unreported transaction involves a loan on a development project in the historically industrial, now gentrifying Bushwick neighborhood. Kushner Companies had made a loan of roughly $30 million to the project at 215 Moore Street in late 2016. Jared Kushner remains a senior adviser to President Donald Trump.
BofI, which was previously known as Bank of Internet USA, said in a statement to ProPublica that it “has no exposure or relationship with Mr. Kushner or his company with respect to 215 Moore St.” The bank likened the transaction to a routine refinancing.
In another transaction last October, the Kushner Companies got a $57 million loan on one of its own projects in New Jersey. BofI Federal provided much of the money behind that loan, Bloomberg reported last week.
BofI Federal Bank faced a Securities and Exchange Commission investigation into its lending practices and conflict of interest policies until last year. After multiple subpoenas in 2016, the SEC closed the investigation in late June 2017.
Kushner stepped away from the management of his family real estate company to join the Trump White House but held onto many of his family company’s assets, including the Bushwick project debt. Ethics experts have criticized the arrangement, saying it could create conflicts of interest if Kushner Companies business partners have business before the government.
Based in San Diego, the publicly traded BofI Federal does most of its real estate lending…