Linda Macklowe walks away from $14.4M pad at 432 Park

Harry Macklowe's estranged wife sued in September, citing plans to shrink the pad

TRD New York /
Dec.December 26, 2017 02:15 PM

Linda Macklowe is staying at The Plaza — not that she was ever really leaving.

The estranged wife of developer Harry Macklowe — who had until last week to close on a $14.4 million pad at 432 Park Avenue, per judge’s orders — walked away from the 78th-floor condominium, court documents show.

She also dropped a lawsuit filed in September, in which she alleged the developers of 432 Park filed plans to shrink her apartment but still wanted her to close on the much-smaller pad. According to her suit, the plans called for transferring the extra square footage to the adjacent unit, which Harry is in contract to buy for an unknown sum.

Last week, Judge David Cohen granted a preliminary injunction giving Linda — who lives at the couple’s massive apartment at The Plaza — until Dec. 21 to decide if she wanted the condo at 432 Park. The ruling also ordered developers Macklowe Properties and CIM Group to withdraw the building plans if she decided to close, or return her deposit if she opted to walk away.

Court documents show Linda dropped the suit Friday, and lawyers for the developers said her $2.16 million deposit — paid via letter of credit — was returned.

“With the Judge’s findings on the record of CIM and Harry Macklowe’s improper conduct with regards to 432 Park Avenue and winning the injunction, there are no further issues to litigate,” said Adam Leitman Bailey, Linda’s attorney.

The developers’ lawyer put a different spin on things. “We had afforded Ms. Macklowe the opportunity to walk away from her contract all along, so this litigation was entirely unnecessary and accomplished nothing,” said Ronald Greenberg, chair of Kramer Levin’s real estate litigation group.

During the divorce, Linda indicated she wants to keep The Plaza apartment, which they bought for around $60 million in 2007. (During the divorce trial, her expert testified its value is now $55 million. Harry’s expert said its worth $107 million.)

On Friday, lawyers for Linda and Harry wrapped up 14 weeks of testimony in real estate’s biggest divorce. The final briefs, on which the judge will base her decision, are due Feb. 6.

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