News | advice | area guide

Ivanka Trump and Jared Kushner’s Rent in Washington: ,000 a Month

Ivanka Trump and Jared Kushner, President Donald Trump’s daughter and her White House adviser husband, are paying $15,000 a month to rent their new home in Washington’s fashionable Kalorama neighborhood from its billionaire owner, according to newly filed documents.

The documents, filed by the landlord with the District of Columbia housing department, present the first concrete financial information about the rental agreement between the couple and the home’s owner, a Chilean magnate whose company is embroiled in a dispute with the U.S. government over a mine potentially worth billions of dollars.

The rent is in line with that paid for similar luxury properties in the area, according to local brokers. Even so, it represents a seemingly poor financial deal for the landlord, according to real-estate experts.

The owner, Andrónico Luksic, bought the house after the November election and paid $5.5 million for the six-bedroom property. The house never was advertised for rent. The White House has said Ms. Trump’s and Mr. Kushner’s broker knew somebody had a bid on the property and helped facilitate the match. The couple moved in shortly afterward.

The $15,000 monthly rent works out to an annual sum of about 2.5% of the home’s value, after subtracting about $40,000 in taxes and insurance that the landlord generally pays.

“That’s a terrible investment” for the owner, said Joshua Adler, who owns multiple rental properties in Washington including a Kalorama house. As for the renters, he said they are “getting use of a $5.5 million home for far less than it normally costs to have a home of that value.”

Rodrigo Terré, who manages Mr. Luksic’s personal investments, said the rent represents a “reasonable return” on the $5.5 million investment.

He said he anticipates the house will gain in value by at least $1 million over an unspecified period, so he isn’t as concerned about the short-term financials. Mr. Terré said he believes the lease is for 2 ½ years.

“This was an arm’s-length transaction at a market price,” said Hope Hicks, a spokeswoman for the White House, Ms. Trump and Mr. Kushner.

As reported in The Wall Street Journal in March, a mining firm controlled by Mr. Luksic’s family is involved in a legal dispute with the federal government over a proposed copper and nickel mine near a Minnesota wilderness area.

The Obama administration blocked the proposed mining project in its waning days, citing environmental concerns, but the company and some Minnesota politicians have asked the Trump administration to reverse the decision.

Both the White House and Mr. Luksic’s representatives have said there is no relationship between the house rental and the mining dispute, and have said the rental was arranged through brokers without the two parties ever meeting.

The filings with the housing department show the tenant on the Kalorama property is Tracy Place Home LLC, which links back to the general counsel of Mr. Kushner’s family company in New York.

The LLC was formed on Dec. 19, three days before a company controlled by Mr. Luksic closed on the house, which is on Tracy Place.

Mr. Kushner and Ms. Trump can easily afford the rent: They have assets valued between $240 million and $700 million, according to financial disclosures made public Friday.

Jim Bell, a real-estate agent with TTR Sotheby’s who specializes in Kalorama property and wasn’t involved in the rental, said he would expect the house to rent for between $13,000 and $15,000 a month.

Other nearby, smaller houses recently were listed for rent for between $11,500 and $12,500.

The post Ivanka Trump and Jared Kushner’s Rent in Washington: $15,000 a Month appeared first on Real Estate News & Advice | realtor.com®.

Source: Real Estate News and Advice – realtor.com » Real Estate News