Super-rich flee swaying NYC skyscraper amid complaints of faulty elevators trapping residents and trash chute sounding like ‘bomb detonation’ – as Billionaires’ Row apartments are slashed by up to $60m

A number of super-rich New Yorkers are leaving one of the Big Apple’s most luxurious skyscrapers amid accusations that the building doesn’t live up to its high price.

432 Park Avenue, a 400-foot tower on Manhattan’s Billionaires’ Row, is facing an ongoing lawsuit from the condominium board alleging defective elevators, leaky plumbing and noise problems.

Real estate agents told the Wall Street Journal that the lawsuit could be a factor in some very wealthy residents wanting to leave, even if it means a multi-million dollar loss.

Broker Nikki Field, a luxury agent for Sotheby’s International Realty, told the newspaper: “The truth is we’ve avoided the building.”

The lavish skyscraper made waves in the New York City real estate world when it was first sold in 2013, and for a short time it was the tallest residential building in the Western Hemisphere.

It attracted a number of famous faces and moguls who wanted to live in the status symbol, including singer Jennifer Lopez and Saudi retail and real estate mogul Fawaz Al Hokair, who bought the penthouse in 2016 for $87.66 million.

But residents reportedly complained about a number of problems after moving in, including rumors that high-altitude apartments would sway and creak over the city below.

Field said she hasn’t brought potential buyers to the tower because of the alleged problems, wondering, “How can I advise my buyers to take that risk and then expect them to work with me again if things go wrong?” ‘

One potential buyer, billionaire tequila mogul 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 extensive damage to units on the 83rd, 84th and 85th. , and 86th floor.

The lawsuit was filed that year and since then, 28 different witnesses have provided at least 45 days of testimony, creating a reported 4 million pages of court documents.

The skyscraper’s developers denied the allegations to the Wall Street Journal, saying the claims were “an attempt to extract unwarranted payments.”

The building’s sponsor, CIM Group, added in a statement that the lawsuit created a “false narrative” and was “inaccurately disparaging.” The company did not immediately respond to a request for further comment from DailyMail.com.

Among those who have taken a loss 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 for it in 2016. paid.

An unnamed owner of a three-bedroom apartment on the 50th floor recently put his apartment 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, almost a third less than the original listing of $18.25 million.

The penthouse is also up for grabs, with Hokair currently asking $105 million, having previously put 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 have been sold from the building, which sold for an average of 3.7 percent less than the original sales price.

Of the units listed, they sold for as much as 27.4 percent less than their highest asking price, the WSJ found through property data.

At that time, prices in Manhattan’s luxury real estate market rose 11.3 percent between the first quarter of 2020 and the first quarter of 2024, which may speak to the impact the lawsuit had on 432 Park’s fortunes Ave.

There are currently 18 apartments for sale in the building, making it 14 percent vacant, while owners typically see that number in the individual figures.

“That’s double the normal listing market share that we usually see,” warned Jonathan Miller of real estate firm Miller Samuel, adding that this number is “something to be concerned about.”

Although 432 Park Avenue has seen some residents flee, real estate agents say it still has significant appeal in the Big Apple real estate market.

A special sale that made waves was in the spring of 2022, when media director Yossi Benchetrit and his wife Gaëlle Pereira Benchetrit purchased a much sought-after apartment on the 82nd floor.

The couple paid a whopping $70.5 million for their main home, in addition to two smaller units for their staffers — after the unit was originally on the market for $90 million.

They are selling their ground floor apartment for $30.5 million, as real estate agent Shari Scharfer Rollins said the lavish building drew them in.

“They just couldn’t leave 432,” she told the WSJ. “If you’re outside the building, you can shit it… but when you walk in, there’s magic.”

In a statement to DailyMail.com, CIM Group and the building’s sponsor branded the lawsuit as “misguided.”

“The Council’s lawsuit, filed in September 2021, has always been misleading, creating a false narrative and inaccurately discrediting the building,” the statement said.

‘Three years of litigation have shown that the complaint is full of untruths and exaggerations. That said, the parties have engaged in productive settlement discussions in recent months, including a March 2024 meeting attended by more than two dozen attorneys, clients and advisors.

“These settlement discussions began to provide avenues toward a resolution beneficial to all parties, especially the 432 park unit owners.

“Unfortunately, these settlement discussions have ceased since the recent Council change. While Sponsor has attempted to maintain the momentum from early 2024, the board and its counsel now appear more interested in pursuing claims that its own experts have declared have no merit.

“Council’s efforts to extract funds to which it is not entitled continues to impose significant legal costs on all parties, and further harms the 432 park unit owners by perpetuating a false narrative about the building that only can destroy value. In reality, 432 Park is Manhattan’s premier residence, the result of hiring a world-renowned architect, best-in-class builder and innovative and experienced engineers.

“It delivers the best level of service, world-class amenities and state-of-the-art technology, and is an iconic addition to the New York skyline.

“Sponsor believes that the board and its attorneys misunderstand Sponsor’s obligations and that its lack of understanding does a terrible disservice to 432 Park and all its stakeholders.”