Several super-rich New Yorkers are abandoning one of the Big Apple’s most luxurious skyscrapers amid accusations that the building does not live up to its high billed value.
432 Park Avenue, a 1,396-foot tower on Manhattan’s Billionaires’ Row, faces an ongoing lawsuit from its condo board over alleged defective elevators, plumbing leaks and noise problems.
Real estate brokers told the Wall Street Journal that the lawsuit may be influencing several super-wealthy residents to want to leave, even if it means taking a multimillion-dollar loss.
Realtor Nikki Field, a luxury agent with Sotheby’s International Realty, told the outlet, “The truth is, we’ve been avoiding the building.”
432 Park Avenue, a 1,396-foot tower on Manhattan’s Billionaires’ Row, has seen several super-wealthy residents take losses to sell their apartments.
When it opened in 2013, the luxury skyscraper attracted famous residents, including singer Jennifer Lopez.
The luxury skyscraper made a splash in the New York City real estate world when it first opened its doors in 2013, and for a short time was the tallest residential building in the Western Hemisphere.
It attracted several famous faces and tycoons looking to live in the status symbol, including singer Jennifer Lopez and Saudi real estate and retail magnate Fawaz Al Hokair, who bought the penthouse in 2016 for $87.66 million.
But residents reportedly complained of a number of problems after moving in, including rumors that the high-rise apartments would sway and creak above the city.
Field said he has not taken any potential buyers to the tower because of the alleged problems, asking: ‘How can I advise my buyers to take that risk and then expect them to work with me again if it all goes wrong?’ ‘
One potential buyer, billionaire tequila magnate Juan Beckmann Vidal, made headlines in 2021 when he was under contract for a $46.25 million apartment on the 86th floor in 2016 when a ‘catastrophic water flood’ caused significant damage to the units on floors 83, 84 and 85. and floors 86.
The lawsuit was filed that year and has since seen 28 different witnesses give at least 45 days of testimony, creating 4 million pages of court documents.
The skyscraper’s developers denied the allegations to the Wall Street Journal, saying they were “an effort to snatch unjustified payments.”
The building’s sponsor, CIM Group, added in a statement that the lawsuit created a “false narrative” and was “inaccurately derogatory.” The company did not immediately respond to a request for further comment from DailyMail.com.
Among those who have suffered losses when selling their apartments is billionaire financier Thomas Peterffy (pictured), who sold his 84th-floor home for $13.5 million, almost $8 million less than the $21.39 million dollars he paid for it in 2016.
The view from Jennifer Lopez’s former home, which she bought in 2018 for $15.3 million before selling it a year later for $17.5 million.
Amenities at the tower’s multimillion-dollar apartments include private pools, gyms and a Michelin-starred restaurant exclusively for residents.
Among those who have suffered losses from selling their apartments is billionaire financier Thomas Peterffy, who sold his 84th-floor home for $13.5 million, nearly $8 million less than the $21.39 million he paid. by her in 2016.
An anonymous owner of a three-bedroom apartment on the 50th floor recently put his unit on the market for $17.5 million, despite paying $18.93 million for it in 2016.
Another home was also recently purchased directly from the developer for $12.3 million, nearly a third less than its original listing of $18.25 million.
The penthouse is also up for grabs, with Hokair currently asking $105 million after previously putting it on the market for $169 million in 2021. He bought it in 2016 for $87.66 million.
And since the lawsuit became public in 2021, 11 apartments in the building have been sold, which on average sold for 3.7 percent less than their original asking prices.
Among publicly traded units, they sold for a staggering 27.4 percent less than their highest sales price, the WSJ found through property records.
In that time, prices in Manhattan’s luxury real estate market rose 11.3 percent from the first quarter of 2020 to the first quarter of 2024, which could reveal the impact demand had on 432 Park’s fortunes. Ave.
There are currently 18 apartments for sale in the building, leaving 14 percent unoccupied, while owners would normally see that number in single figures.
“That’s double the normal real estate market share that we normally see,” warned Jonathan Miller of real estate firm Miller Samuel, adding that figure is “something we have to worry about.”
The building remains among the most luxurious in the Big Apple, and Gaëlle Pereira Benchetrit (pictured) and her husband, media executive Yossi Benchetrit, recently spent $70.5 million on a second unit in the building.
The Benchetrits sold their lower-level apartment (pictured) for $30.5 million so they could move to a larger, higher unit, a sign realtors say shows 432 Park Avenue still has clout.
While 432 Park Avenue has seen some residents flee, real estate agents say it still has significant pull in the Big Apple real estate market.
One particular sale that made waves was in spring 2022, when media executive Yossi Benchetrit and his wife Gaëlle Pereira Benchetrit snapped up a highly sought-after 82nd floor apartment.
The couple paid a staggering $70.5 million for their main home, along with two smaller units for their staff, after the unit was originally on the market for $90 million.
They are selling their bottom-floor apartment for $30.5 million, as real estate agent Shari Scharfer Rollins said they were attracted to the luxury building.
“They just couldn’t abandon 432,” he told the WSJ. “When you’re outside the building, you can poop… but when you walk in, there’s magic.”
