Possible conflict of interest looms over Kushner family skyscraper deal

Traffic passes outside 666 Fifth Avenue in New York.
Daniel Acker | Bloomberg | Getty Images

Jared Kushner's relationship with his father-in-law, President Donald Trump, could be detrimental for his family's 666 Fifth Ave. building redevelopment project, according to a Wall Street Journal report.

Charles Kushner and his real estate organization, Kushner Companies, is working against conflict of interest concerns for his $7.5 billion project, because of his son Jared's role as a White House advisor to Trump.

Anbang Insurance Group, a prominent Chinese company with political ties to Beijing, could provide up to $1.75 million in equity for the Manhattan skyscraper remodeling, according to sources cited in the Wall Street Journal article, but ethics issues are making the Chinese firm weary.

After reports of Anbang's investment surfaced, the company released a March 14 statement that said "the information about Anbang investment in 666 Fifth Avenue is not correct, there is no investment from Anbang for this deal," according to Reuters.

A Kushner spokesperson told CNBC on Tuesday that the real estate company "is in advanced, ongoing discussions around 666 Fifth Avenue."

CNBC previously reported Kushner sold his ownership stake in 666 Fifth Ave. to avoid any conflicts of interest, according to a company spokesman.

Jared Kushner, senior advisor to President Trump, listens to the president during a listening session with cybersecurity experts in the Roosevelt Room the White House in Washington on Tuesday, Jan. 31, 2017.
Jabin Botsford | The Washington Post | Getty Images

Anbang will reportedly choose if it will be part of the project by the end of the week, according to The Wall Street Journal.

People familiar with plans for the building told the newspaper that the older Kushner plans to turn the Manhattan structure into a $12 billion, 1,400-foot mixed-use skyscraper that includes retail space, luxury condominiums and a hotel.

Anbang Insurance Group is recognized for its ongoing push for overseas investment. The company acquired the Waldorf Astoria hotel in New York for $1.95 billion in 2015.

Read more about the Kushner family's building negotiations on The Wall Street Journal's website.