Macklowe Sues Former 432 Park Ave. Partner For Unpaid Leasing Fees
Macklowe Properties is suing its ex-partner at the retail portion of the luxury supertall 432 Park Ave., claiming it never got its rightful payout for leasing the space.
Macklowe filed the lawsuit against MIP Acquisition in New York State Supreme Court in Manhattan. The Harry Macklowe-led company claims it is owed $3.3M for arranging a lease with Phillips Auction House in the 71K SF retail space at the bottom of the condo, Crain’s New York Business reports.
Macklowe and Sheikh Hamad Bin Jassim bin Jaber Al-Thani had previously co-owed the space through MIP Acquisition limited-liability company, having paid some $411M for it back in 2016.
That arrangement ended in 2017 and Al-Thani took full ownership of MIP, per The Real Deal. Phillips signed up for the space in 2019, paying $121.6M for 15 years. Macklowe claims it is owed a standard broker fee for getting the deal done.
Macklowe argues that MIP hasn't paid out the $3.3M it was promised. Plus, Macklowe claims MIP has tried to cut Macklowe’s payment in order to meet commission demands from CBRE and Cushman & Wakefield, per Crain’s.
The suit comes just a few months after the condo board at 432 Park Ave., hit Macklowe and CIM Group, which co-developed 432 Park, with a $125M lawsuit, arguing “sponsor malfeasance” has left owners dealing with a slew of problems, including apartment floods, pests and loud noise.
The building at 432 Park Ave. is nearly 1,400 feet tall, has 125 units and 30K SF of amenities space that includes a private restaurant and a 75-foot swimming pool.
