Near the southern edge of Central Park, a two-year battle over a storied New York apartment building ended when a Saudi investor missed a deadline to make a deposit on his proposed $2 billion purchase. Motasem Khashoggi, a Harvard-educated lawyer from a prominent Saudi family, had planned to renovate the faded landmark, requiring all residents to sell their units and leave. The deal's collapse leaves the building's future in question, as engineering studies have found water leaks, old and corroded pipes, and antiquated fire safety systems requiring extensive repairs.
This missed payment is a reprieve for residents who opposed the plan pushed by a small group of current and retired businessmen on the co-op board. Howard Lutnick, President Trump's commerce secretary and the owner of the Pierre's penthouse, was a driving force behind the failed deal, having found the potential buyer and helped craft a pitch for the building. Lutnick, a billionaire, would have netted a $60 million profit on the sale of his unit extending from the 41st to the 43rd floor, while his firm, Newmark Group, would have received a $30 million advisory fee.
The potential sale had also put the building's more than 400 employees' jobs at risk. The Pierre serves as an apartment building with about 70 units and a hotel offering overnight rooms. "I am relieved," said Tina Beriro, a vocal opponent who has lived there for over 20 years and turns 86 on Thursday. "A group of old lady widows and divorcées — look what we did! And without us, we would have been gone." Khashoggi said he had funds available but his bank held up the wire transfer for weeks. He expressed extreme disappointment and whether he will revive the proposal remains unknown.
He had offered residents generous terms: above-market-value prices, a year to relocate, and an invitation to buy back into the upgraded building at a discount. The building would have been operated after a $1 billion renovation by the Dorchester Collection, a luxury hotel brand owned by Brunei.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing