Wealthy homeowners of condominium units at an ultra-luxe building on Manhattan's "Billionaires' Row" are selling at a loss following lengthy legal disputes that mired the building.
In 2013, 432 Park Avenue launched the sale of its luxury condominium units. The roughly 1,400-foot-high tower on Billionaires' Row drew the attention of celebrities, with its private dining terrace, Michelin star chef, and luxurious spa amenities.
However, the condo later became the subject of legal disputes alleging mismanagement and more than 1,500 "construction and design defects."
Three years since the initial lawsuit was filed in 2021, unit owners are now looking to sell their units, even if they are at a loss, according to the Wall Street Journal.
Selling at a Loss
In mid-May, at least 18 condo units in 432 Park were listed for sale. This accounts for 14% of the building's units. As of Thursday, 16 units were still listed for sale. Thirteen of the 16 units are also selling for less than they had in previous years, with one unit selling for nearly 18% less than last year, the report noted.
A six-bedroom, seven-bathroom penthouse apartment spanning 8,255 square feet was on sale for $169 million in 2022. This year, it's listed for just $105 million, a 38% reduction in prices.
Since the legal dispute was publicized in 2021, 11 units were sold. All of those units sold for 3.7% less than what the original sellers bought them for. Additionally, the units that were listed publicly were sold at a 27.4% discount from the highest asking price, WSJ noted.
432 Park Avenue Lawsuit
The condominium board at 432 Park Avenue first sued the building's developers in 2021. In their lawsuit, the board called the skyscraper "one of the worst examples" of developer malfeasance in the city's history.
In addition, that lawsuit alleged that the residents are "at odds" with developers over a number of issues, including floods, elevator malfunctions, costly water damage from plumbing issues, and walls that creak due to the developer's "failure to properly design" the building to account for its height, per The New York Times.
Since 2021, more than four million pages of documents against the building's developers have been filed in court.
