(CNN) A real estate investment startup co-founded by Jared Kushner skirted New York City laws and earned his company more money than expected when they flipped the properties, according to a report by Bloomberg.

In the company's first-known deal, according to Bloomberg, Cadre sold three rent-regulated buildings for $59 million in April 2017, about an 80% premium over what it paid a little more than two years earlier.

Kushner Cos., Cadre's operating partner at the property, "told the city the buildings had no rent-regulated tenants when applying for construction permits to update the buildings in 2015 but tax records filed later showed almost 100 such residents," Bloomberg reported , citing an earlier story by the Associated Press.

Additionally, Kushner, an adviser to his father-in-law, President Donald Trump, had not divested his holdings in Cadre by last December, according to Kushner's latest financial disclosure report.

Rent-controlled units in the properties would have made the buildings worth less to prospective buyers.

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