The Watchtower in Brooklyn Heights is one of the most noticeable edifices in New York. It’s a complex of buildings on a bluff above the East River, with a sign on top that flashes the time and temperature. It used to be the world headquarters of the Jehovah’s Witnesses.
But today, workers are preparing to give it a makeover. Like so much else in Brooklyn, the Watchtower has been sold to developers. It changed hands last August, shortly after Donald Trump accepted the Republican nomination for President.
The timing is relevant, because the buyer was Trump’s son-in-law, Jared Kushner. At $340 million, Kushner’s purchase of the Watchtower was one of the biggest real estate transactions in Brooklyn history.
Kushner didn’t buy the Watchtower alone. He had help from a company called CIM Group, a private equity firm based in Los Angeles. Over the years, documents show, CIM has done at least seven real estate deals that have benefited Trump and the people around him, including Kushner. Those deals included stabilizing the scandal-plagued Trump SoHo hotel, a key Manhattan holding for Trump and his children Ivanka, Eric, and Donald Jr.
At the same time, records show, CIM Group, with approximately $19.7 billion under management, has pursued an array of lucrative government contracts, pension investments, lobbying interests, and a global infrastructure fund, all of whose fortunes could benefit from a Trump presidency.
While both Kushner and Trump have distanced themselves from their businesses, neither man has divested. Ethics experts including Kathleen Clark of the Washington University School of Law say that because of the two men’s ongoing business interests, the web of connections with CIM is troubling, even if no laws are broken.
“Trump gives new meaning to the idea what’s good for Donald Trump is apparently good for America,” Clark said. “He doesn’t actually seem to have a conception of the public interest outside of himself or his company or his family. That’s astounding.”
The White House declined to comment for this story, but in the past has defended Trump and Kushner’s business ties, saying they’ve been vetted and are in compliance with laws and regulations. CIM declined to comment on potential conflicts.
What is CIM?
CIM Group is certainly known at the top echelons of New York real estate. But the company itself — its character, its founders — seem to leave few traces beyond the properties in which it invests.
“CIM stands out as being very secretive,” said Konrad Putzier, a reporter for the Real Deal magazine and website who has covered the company for several years. “The fact that we don’t even know what CIM stands for says it all.”
A spokesman said in an email "CIM stands for CIM…that is all."
CIM was founded in Los Angeles in 1994 by Shaul Kuba and Avi Shemesh, two Israelis, and Richard Ressler, a former New Yorker with private equity in his family — his brother Tony Ressler co-founded industry giant Apollo Global Management with his brother-in-law, Leon Black.
CIM’s strategy is to get good returns for investors by investing in undervalued urban real estate. The firm quickly became known in California for courting influential politicians and donating tens of thousands of dollars to a series of statewide political action committees.
In 2004, the firm acquired a package of properties that included the Kodak Theatre (now the Dolby Theatre) in Hollywood, where the Academy Awards are held. They purchased the real estate at a deep discount, after the previous owner ran into financial difficulties.
A few years later, CIM persuaded the city of Los Angeles to arrange a $30 million HUD loan to reconfigure the theater to stage shows from Cirque du Soleil. The arrangement was supposed to last a decade and generate hundreds of millions of dollars in new economic activity. Cirque’s show, however, fizzled after little more than a year.
CIM has plenty of friends in Los Angeles, but it also has plenty of critics. Dennis Zine, a retired police officer and former city councilman, helped the company win the right to develop the derelict Reseda Cinema, which appeared in the opening sequence of Boogie Nights. Zine said CIM promised big things, but then neglected the project, embarrassing him in the process.
“They burned their bridge with me,” Zine said.
CIM Moves into New York
Throughout the early 2000’s, CIM kept rolling up cash, in part by drawing investments from public pension funds like those in New York State and California. In 2010, when CIM made its first foray into New York, the two states had more than a billion dollars with CIM. Neither pension fund would discuss the reasons for their investments.
It was a great time for investors with an appetite for risk and the potential big payouts. The financial crisis had wiped out big banks like Bear Stearns and Lehman Brothers. Those that were still around were barely lending, and many New York developers were struggling to pay their bills.
One of those was Harry Macklowe, who had acquired the site of the old Drake Hotel in Midtown Manhattan but lacked the money to build. Court records show Macklowe had tried to work out a deal to finance the project with Paul Manafort, who would later become Trump’s campaign manager, and a Ukrainian oligarch named Dmitry Firtash who had friendly relations with the Russian leader Vladimir Putin. But those negotiations went nowhere.
Then, in January 2010, CIM partnered with Macklowe to erect what is now known as 432 Park Avenue, the tallest residential tower in the Western Hemisphere. One unit later sold for $95 million.
Later that year, CIM saw another opportunity: the Trump SoHo.
Though the condo-hotel project had been announced on “The Apprentice” finale in 2006, it was troubled from the start. Neighbors were immediately alarmed and upset with the idea of an outsized tower in the low-rise, chic district.
Andrew Berman, executive director of the Greenwich Village Society for Historic Preservation, recalled that the project was plagued with problems. He said there were “deadly construction accidents, bodies being exhumed on the site from a 19th century abolitionist church, falling objects from the building.”
Just after a gala ribbon-cutting for the Trump SoHo in the fall of 2007, the New York Times reported that one of principals in the building partnership, Felix Sater, had been convicted of assault for cutting a man with a broken margarita glass in a bar fight. He’d pled guilty to a stock fraud scheme. Another principal, Kazakh-born Tevfik Arif,was arrested on child-prostitution charges in Turkey. He was later acquitted.
It was, as Berman described it, “just an endless array of scandals and connections between the financiers and Russian and Central Asian mobs.”
Condo buyers sued Donald Trump, Ivanka Trump, Eric Trump, and Donald Trump Jr., saying they lied about how many units had been sold. The Manhattan District Attorney began investigating whether there had been criminal fraud. The lawsuit was eventually settled, with the plaintiffs required to sign non-disclosure agreements. With few witnesses, the D.A. dropped its probe.
By 2010, the partners behind Trump SoHo, were falling behind on their construction loans, and the lenders were threatening foreclosure.
That’s when CIM stepped in with a reported $85 million lifeline.
Important Partners
The same month CIM saved Trump SoHo, December 2010, CIM bailed out the project’s co-developer, Tamir Sapir, on two other properties he owned: 11 Madison Avenue and the William Beaver House in Lower Manhattan. In all, CIM spent more than a half-billion dollars and gained a stake in some prime New York City properties.
“There was a short window of opportunity that they just seized,” said the Real Deal’s Putzier.
CIM also soon embarked on its first venture with Kushner, an office building at 200 Lafayette Street. The New York Post reported that when they sold the building in 2013 — after $30 million in renovations — the new buyer paid three times as much as Kushner and CIM had initially invested. CIM and Kushner also appeared to turn a quick profit on another jointly-purchased office building, 2 Rector Street.
“The connection with Kushner, it’s very fitting,” Putzier said. He noted that the Kushner Companies own 20,000 apartments and 13 million square feet of office and industrial space, “but...they’re a family company, so when they do a lot of deals they usually need a partner with a lot of equity to help them, and that has often been CIM Group.”
Kushner Companies agrees. In a statement, President Laurent Morali — who replaced Jared Kushner as the firm’s top executive after Kushner went to work in the White House — said “CIM is a strong longstanding partner with a developer’s DNA. They can work through complicated situations, are thorough and strategic, yet also make quick decisions.” The feeling is mutual: CIM said in a statement that it has “strong, collaborative relationship with the team at Kushner, which has proven to be a valuable local partner.”
CIM also said it “has only one business relationship with a Trump-related company” — the Trump SoHo. The Trump Organization declined to comment for this story; it manages the property under the terms of a licensing agreement.
"The headline attraction of being somehow even tacitly aligned with the President of the United States could provide an incredible fundraising opportunity if they play it right, if they spin it the right way," said Serge Reda an adjunct professor at Fordham Business School. While the specifics of CIM's pitch to investors are unknown, Reda said it would be expected that a private equity firm would discuss its record.
When CIM started making deals with the Trumps and the Kushners, its executives had no idea their business partners would one day occupy the Oval Office. But now they do, and ethics experts say that puts CIM’s connections to the First Family and its significant government business dealings in a new light.
The full extent of CIM’s government ties is not known; much of its business is private, though some investments are publicly traded. In public disclosures, CIM said it received annualized rent of $37.7 million from the General Services Administration and other federal agencies. The company said that losing business from a downsized government "could have a material adverse effect."
CIM also depends on the EB-5 Immigrant Investor Program, which provides a path for foreign investors in American real estate to obtain U.S. green cards. According to the non-partisan research group Opensecrets.org, CIM spent $430,000 on federal lobbying in 2015, putting it among the top ten real estate firms lobbying on that issue. CIM listed preserving the EB-5 program as a major lobbying priority.
This is the same program that Jared Kushner’s sister Nicole Meyer, one of his siblings who now runs the family business, was recently promoting in China.
There’s one more program CIM might benefit from, which could dwarf its profits from EB-5, rents or pensions. According to SEC disclosures, CIM has an infrastructure investment fund which it acknowledges is sensitive to “regulation” and “political events.” If Trump gets an infrastructure bill passed, funds like this could earn many millions from projects like roads and tunnels.
Kushner is at the center of the administration’s building plans. In March, the White House announced that he would head an “Office of American Innovation” whose mandates include “creating transformational infrastructure projects.”
"Whether the parties are doing something untoward or not, the situation creates doubt, and it will follow the President throughout his term as long as he owns his business," said Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington or CREW. "It’s a question we shouldn’t be having to ask.” His group is suing the president for violating the Emoluments Clause of the Constitution.
Last December, as the president-elect was preparing to move to the White House, the firm did one more deal with Trump-world: CIM helped Kushner Companies buy 85 Jay Street, a parking lot in Brooklyn, for an eye-popping $345 million.
Watch that space.
Biblical Acrostics
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They are apparently random. Hebrews used alphabetic acrostics in psalms and poetry because it provided a mnemonic. Imagine trying to remember a Psalm of 172 verses like Psalms 119 if it didn't make use of an alphabetic memory aid. But there is no evidence that the Hebrew readers who translated the Hebrew to Greek for the LXX even noticed them in Esther. Also, these are some of the most common letters in Hebrew, and they are at apparently random, non-poetic places in the book. This is also true of where they show up in at least 50 or 60 other places in the Bible but never got noticed - because those books didn't go through a canonization debate and already used God's name, sometimes right next to the so-called acrostic. First Chronicles has more than a dozen of them, in obviously random places. And, just like in the book of Esther, sometimes, to make them work, you have to use the beginning letters of four consecutive words for some, and the final letters for some, and you have to read forward on some and read backwards on some.
This gives evidence that it was just wishful thinking that forced people to look even harder at the book to try to find the divine name in it, or perhaps that the text was purposely manipulated to give Esther an edge in canonization. (But the fact that no one just went ahead and added YHWH to the text, makes Micah's point even less relevant.)
Laurence A. Turner wrote an essay for a publication in a scholarly journal in 2013 that kind of sums up the idea in the title: "Desperately Seeking Yhwh, Finding God in Esther's 'Acrostics.'" https://www.academia.edu/6370833/Desperately_Seeking_YHWH_Finding_God_in_Esthers_Acrostics_
In that work, it is mentioned that you can even find Satan in the book of Esther at least twice by using the same methods. (Of course, a real numerologist would simply say that this means that God is twice as powerful as Satan, and some would undoubtedly nod their heads without questioning whether God is actually 7 or 10 or 100,000 times more powerful.)
Edited to add: Just noticed a footnote in the work quoted by Turner. Previously I had seen someone who found about 60 instances. Turner claims to have found over 100. My guess is that there are probably even a few more. Here's his footnote: