Private equity bigwig lists $22.5M mansion, one day after mansion tax passes

If townhouse sells at list price, buyer would have to pony up additional $619K in transfer taxes

TRD New York /
Apr.April 01, 2019 03:56 PM
Cerberus Capital managing director Jonathan Gallen and 22 West 74th Street (Credit: Cerberus)

Cerberus Capital managing director Jonathan Gallen and 22 West 74th Street (Credit: Cerberus)

It’s not the best timing. The day after the mansion tax passed the New York state budget, this hedge funder is listing a fancy Upper West Side mansion.

Jonathan Gallen, managing director of one of the country’s largest private equity firms, Cerberus Capital Management, has listed his townhouse for $22.8 million.

Built in 1907, the six-story townhouse at 22 West 74th Street has six bedrooms, seven bathrooms, and four powder rooms. It spans 10,500 square feet, with an additional 765 square feet of outdoor space, including a garden and a terrace. The house also has two media rooms, a library and five wood burning fireplaces. Gallen bought the townhouse for $9.1 million in 2006.

The tax, an amendment to the existing transfer tax, is expected to take effect as early as July. Given how long Manhattan luxury properties are lingering on the market, it’s unlikely Gallen will find a buyer at his price before the tax hits.

Under the old mansion tax, the buyer would pay $225,000 if he or she purchased the home at listing price. Under the new tax provisions, that figure jumps to about $844,000.

Gallen declined to comment. The listing broker, Cathy Franklin of Corcoran Group, did not respond to a request for comment.

In 2013, Gallen was featured in a New Yorker piece that described him as “a sports-memorabilia obsessive who supports his hobby by running a hedge fund.” At the time he had room filled with autographs which he called the “den” but which his wife called a “museum.”

Cerberus, the firm where Gallen works, specializes in undervalued companies and distressed corporate debt. The company also owns military contractor DynCorp, and Tier 1 Group, a private military base outside Memphis.

Stephen Feinberg, co-founder of Cerberus Capital, was appointed head of foreign intelligence advisory board by President Trump in May 2018. Known for his emphasis on secrecy at the company, Rolling Stone reported that in 2007, Feinberg told shareholders there would be consequences for any Cerberus employee who gained too much publicity.

“If anyone at Cerberus has his picture in the paper and a picture of his apartment, we will do more than fire that person,” Feinberg said, “We will kill him. The jail sentence will be worth it.”


Related Articles

arrow_forward_ios
Photo illustration of the Williamsburg Bridge (Getty, iStock) 

As Manhattan struggles, Brooklyn’s sales market is “booming”

As Manhattan struggles, Brooklyn’s sales market is “booming”
HFZ Capital’s condo the XI has sold 38 of its 236 units (iStock)

HFZ’s Chelsea condo now effective, with 16% of units sold

HFZ’s Chelsea condo now effective, with 16% of units sold
Zillow's Rich Barton (iStock)

Zillow launches brokerage to boost iBuying

Zillow launches brokerage to boost iBuying
421 Broome Street (Google Maps)

Soho penthouse buy sets record despite price chop

Soho penthouse buy sets record despite price chop
Oxford Property Group CEO Adam Mahfouda and (inset) the late Bianka Yankov (Mahfouda courtesy of Propco Holdings, iStock, Linkedin)

Oxford Property Group acquires Spire, expands to nearly 800 agents

Oxford Property Group acquires Spire, expands to nearly 800 agents
New York Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins (Getty)

New York lawmakers push for new millionaires’ tax

New York lawmakers push for new millionaires’ tax
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
209 Dean Street and 315 Adelphi Street (Google Maps)

Sprawling Brooklyn townhouses drive week’s priciest deals

Sprawling Brooklyn townhouses drive week’s priciest deals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...