Harry Macklowe’s problems at 432 Park Avenue are getting personal.
The legendary developer attempted to list his penthouse for $75 million. One problem: he already lost ownership to lender CIM Group through foreclosure, the Wall Street Journal reported. Macklowe worked with Douglas Elliman to prepare his 78th-floor units for sale in recent weeks.
The developer was forced to surrender his equity in the LLCs controlling the apartments to a CIM-linked entity in June after defaulting on $46 million in loans, bankruptcy records reveal.
Douglas Elliman initially approached the Journal on Thursday about the exclusive listing opportunity. The 78th floor consists of a finished four-bedroom unit spanning roughly 7,000 square feet and a raw 1,200-square-foot space originally intended for Macklowe’s ex-wife Linda, who never closed amid their ugly divorce.
The foreclosure capped a lengthy dispute between the former partners.
CIM, the Los Angeles-based sponsor of the troubled Billionaires’ Row tower, initiated foreclosure proceedings against Macklowe in August 2023. Macklowe delayed the action with a bankruptcy filing that October but later reached a settlement giving him five months to refinance or sell the units.
The conflict stems from CIM’s 2010 bailout of Macklowe’s original 432 Park development. After Macklowe bought the Drake Hotel site for $413 million in 2006, CIM paid off his debts and acquired his interests in exchange for future fees on sales. Macklowe and his then-wife entered contracts to purchase two units for over $46 million, deals that remained in place for 10 years.
CIM provided mezzanine financing when Macklowe finally decided to purchase three units totaling roughly $47 million in 2022. The package included two apartments on the 78th floor and a smaller 28th-floor unit intended for staff use.
Macklowe’s ownership dispute represents another layer of litigation surrounding the 125-unit building. The condo board filed a 2021 lawsuit alleging developer malfeasance, citing noise issues, leaks and malfunctioning elevators. Another lawsuit was filed by buyers this spring.
The ongoing case has dampened sales and property values.
This is the second time Macklowe has looked to move a personal property with a significant issue attached. He’s been attempting to sell a home in East Hampton since last March, but it’s not habitable without an updated certificate of occupancy.
— Holden Walter-Warner
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