Carlyle Group, the world's second- largest private-equity firm, is poised to buy a stake in the retail portion of 666 Fifth Ave. in New York for $525 million in a transaction that would help the building's owner Jared Kushner repay debt, according to people familiar with the matter.

Carlyle, based in Washington, plans to make the purchase with Crown Acquisitions as a leasing partner, said the people, who declined to be named because the deal isn't complete. Carlyle may not buy all of the space available, according one person familiar with the transaction.

The purchase would be the second high-profile commercial real estate acquisition by Carlyle this month. The firm acquired 650 Madison Ave. for $680 million with Ashkenazy Acquisition Corp. A sale of the 666 Fifth retail space would enable Kushner Cos. to pay some of the short-term debt incurred after purchasing the building last year for $1.8 billion.

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``As far as Manhattan retail goes, it doesn't get much better than that space,'' said Dan Fasulo, managing director and head of research for Real Capital Analytics Inc. in New York. ``It makes sense for a cash-heavy buyer to come in and wait out the leases. Kushner is seeking to raise cash.''

Carlyle's Investments

Carlyle has sought investments in real estate as the market for large leveraged buyouts wanes. Announced private-equity deals plunged 70 percent to $60.7 billion in the first quarter from $200 billion a year earlier, according to data compiled by Bloomberg.

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