Owners are fleeing a troubled super-luxe skyscraper on ‘Billionaire’s Row’: report

An ultra-luxe “Billionaire’s Row” residential tower has been mired in a lengthy legal dispute, and some owners are now fleeing the building, according to a report in The Wall Street Journal.

The condominium board at 432 Park Avenue in midtown Manhattan — once the tallest residential building in the Western Hemisphere — first sued the building’s developers in 2021.

In their lawsuit, the board argues that the alleged mismanagement at the 96-story, 125-unit skyscraper was “one of the worst examples” of developer malfeasance “in the history of New York City.”

Their suit alleges that the building is riddled with more than 1,500 “construction and design defects,” such as repeated elevator breakdowns, leaks, floods, and obtrusive noise and vibrations caused by the developer’s “failure to design” the building to account for its height properly.

They argue that the developer’s response to those flaws has been “equally atrocious.”

The developers have denied most of the board’s allegations. The battle has intensified in the years since the initial lawsuit, with more than 4 million pages of documents filed in court, according to The Wall Street Journal.

Now, the WSJ reported that a number of wealthy owners in the building want out—even if it means selling their units at a loss.

The Wall Street Journal analysis, citing data from StreetEasy, found that eighteen units in 432 Park, totaling 14% of the building’s total units, were listed for sale as of mid-May.

As of Thursday, 16 units were still listed for sale on StreetEasy, 13 of which are selling for less than they had in previous years, according to their StreetEasy price history. The price of one of the units currently for sale has been reduced by nearly 18% in the last year, StreetEasy data shows.

The building’s six-bedroom, seven-bathroom, 8,255-square-foot penthouse apartment was on sale for $169 million in 2022; now, it’s listed for just $105 million, a 38% reduction.

Eleven sales have closed in the building since the legal dispute became public in 2021. According to the WSJ, those units sold for 3.7% less, on average, than what the sellers originally paid and, for those listed publicly, at a 27.4% discount from the highest asking price.

Lawyers for the building’s developers, the building’s press representative, and the building’s board did not immediately respond to a request for comment.