Billionaire residents complain about living in luxury New York high-rise 432 Park
Billionaire residents of one of the world’s most expensive multimillion-dollar luxury towers are complaining of major construction failures.
Living at 432 Park Avenue in New York – one of the wealthiest addresses in one of the tallest residential buildings in the world – should be the epitome of luxury.
But residents who have paid up to $US88 million ($115 million) for an apartment in the building are up in arms complaining about major construction failures and huge out-of-pocket expenses.
The Manhattan high-rise on the famously named Billionaire’s Row, which was briefly the tallest residential building in the world when it was constructed in 2015, attracted some of the wealthiest people in the world to live in the exclusive building.
Jennifer Lopez and Alex Rodriguez were one couple who bought a 1200sq m apartment in the luxury high-rise for $US15.3 million ($20 million) in 2018, but sold it just a year later.
The 96th floor penthouse at the top of the building sold in 2016 for nearly $US88 million ($A115 million) to a company representing the Saudi retail magnate Fawaz Alhokair.
The tower which shoots up to more than 420m high is riddled with significant design and engineering flaws that’s costing millions in repairs and insurance costs.
Residents are complaining about major leaks, significant water damage, mechanical problems with the lifts and unusually loud creaking, banging and clicking noises in their apartments.
There have been a number of floods in the building, with two major leaks recorded in November 2018.
The owners also complained about the garbage chute “that sounds like a bomb” when rubbish is tossed, according to notes from a 2019 owners’ meeting.
“I was convinced it would be the best building in New York,” Sarina Abramovich, one of the earliest residents of 432 Park, told The New York Times. “They’re still billing it as God’s gift to the world, and it’s not.”
In 2016, she and her husband bought a $US17 million ($A22 million) apartment that spans more than 1000sq m so the retired couple could have a second home close to their children.
She said they were disappointed with their purchase from day one. “Everybody hates each other here,” Ms Abramovich said.
“They put me in a freight elevator surrounded by steel plates and plywood, with a hard-hat operator,” she said. “That’s how I went up to my hoity-toity apartment before closing.”
The uber-wealthy who have forked out millions of dollars for a piece of the exclusive real estate in the building – which cost $US3.1 billion ($A4 million) to construct – are now at odds with the developers.
The construction manager, Lendlease, made a statement that they “have been in contact” with the developers “regarding some comments from tenants, which we are currently evaluating”.
One of the building’s developers, CIM Group, said in a statement that the building “is a successfully designed, constructed and virtually sold-out project”, adding that they are “working collaboratively” with the condo board. There have been no comments from the other developer, Macklowe Properties.
On top of the construction problems, residents have been fraught with added expenses to the multimillion-dollar price tag to live there. Strata fees skyrocketed around 40 per cent in 2019 to pay for repairs and hiked insurance, according to management emails.
Residents have also been forced to pay $US15,000 ($A19,000) in annual fees for the building’s private restaurant, which is run by a Michelin-starred chef, even though they were told this cost would be only $US1200 ($A1570) a year. The complimentary breakfast they were promised is off the menu now too.
https://www.news.com.au/finance/money/wealth/billionaire-residents-complain-about-living-in-luxury-new-york-highrise-432-park/news-story/5d115d1a8be17ff3c2dae5e0ccfbb870