Walker Tower penthouse ensnared in 1MDB scandal to hit market for $45M

Unit last sold for $50.9M

Oct.October 06, 2017 08:30 AM

Walker Tower (credit: JDS)

The priciest penthouse ever sold in Downtown Manhattan is hitting the market amid allegations that the apartment was purchased with funds stolen from Malaysia’s sovereign wealth fund.

The Walker Tower penthouse is expected to be listed for $45 million — nearly $6 million short of what the unit sold for in 2014, the Wall Street Journal reported. (At the time, the deal marked the most expensive home sale downtown, but a penthouse at Ian Schrager’s 160 Leroy just went into contract for slightly more, $51 million.) Federal authorities believe that Abu Dhabi-based businessman Khadem Al Qubaisi controls the LLC that owns the penthouse, and that he used money misappropriated from the Malaysian state fund 1Malaysia Development Bhd. (1MDB) to make the purchase.

In September, a federal ordered the Justice Department to hold off on seizing other assets in New York and Los Angeles connected to the scheme until a criminal investigation was conducted.

Earlier this year, developer Steve Witkoff and the Justice Department put the Park Lane Hotel up for sale. The deal cut out majority owner Jho Low, who authorities believe illegally diverted funds from 1MDB into real estate. [WSJ] — Kathryn Brenzel 

Related Articles

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone

From left: 515 Park Avennue, Soori High Line, One Beacon Court, 53 East 67th Street and 15 Hudson Yards (Photos via Douglas Elliman, Compass, StreetEasy, Hudson Yards, Apartments)

Priciest homes to hit market include an UES building prime for mansion conversion

166 E. 81st St. (Credit: Google Maps, iStock)

UES townhouse once described as “infested with vermin” goes into contract

Marie-Chantal Miller, the Crown Princess of Greece, and her husband Pavlos, the Crown Prince with 385 Great Plains Rd, Southampton, NY  (Credit: Getty Images)

Royal couple buys sprawling Southampton mansion