Foreclosed 432 Park Avenue Penthouse Finds Buyer at $50 Million Amid Tower's Legal Woes
In a significant deal on Manhattan's Billionaires' Row, a foreclosed full-floor condominium at the controversial 432 Park Avenue has changed hands for more than $50 million. The property, once belonging to real estate magnate and tower co-developer Harry Macklowe, was sold by the California-based CIM Group, which seized the assets last year after loan defaults.
The sale, first reported by The Wall Street Journal, involves two combined units on the 78th floor, spanning approximately 8,300 square feet. Macklowe's entities originally acquired the spaces for $47 million in 2022, financed by CIM Group loans. One unit was lavishly appointed with modern art and minimalist furniture, featuring a custom blue glass egg-shaped bathtub, while the adjacent unit, intended for his ex-wife Linda Macklowe, remains unfinished. It is unclear if a separate staff apartment on the 28th floor is included.
The transaction closes a chapter of personal financial drama for Macklowe, who surrendered his equity in the building to a CIM-linked lender in June 2025 after defaulting on $46 million in loans. Despite attempting to list the properties for $75 million as recently as July, the foreclosure sale proceeded at a notable discount.
This sale occurs against a backdrop of ongoing legal and structural challenges for the 1,396-foot tower. The condominium board has filed lawsuits alleging chronic issues including concrete facade cracks and excessively noisy trash chutes—claims the building's sponsor denies. These controversies have contributed to sluggish sales velocity at the prestigious address.
Brokers Glenn Davis and Nicholas Compagnone of Serhant represented CIM Group in the deal. Meanwhile, Macklowe is seeking a buyer for his East Hampton estate, listed at $38 million, though the property lacks necessary occupancy permits due to unauthorized renovations.
Reaction & Analysis:
"This sale is a clear market signal that even distressed assets in trophy buildings can find buyers if the price adjusts to reality," says Michael Thorne, a real estate analyst at Sterling Insights. "It also shows that deep-pocketed investors are willing to look past headline risk for a unique opportunity."
"It's astounding that someone would pay $50 million for a home in a building that's literally cracking apart," remarks Clara Jensen, an architect and longtime critic of supertall residential towers. "This isn't just a purchase; it's a gamble. The legal battles over structural integrity could drag on for years, potentially eroding value further. It speaks to the irrationality at the very top of the market."
"For the new owner, this is about prestige and a one-of-a-kind view," notes David Park, a luxury property attorney. "The due diligence process would have been intense, given the litigation. The discounted price likely factors in potential future assessments or repairs. It's a calculated move."