The latest in Harry Macklowe’s divorce: Linda’s appeal killed in court

Appellate court upheld divorce judge’s assessment of real estate assets, art

TRD New York /
Oct.October 10, 2019 06:06 PM
Harry Macklowe, Linda Macklowe and 432 Park Avenue (Credit: Getty Images)

Harry Macklowe, Linda Macklowe and 432 Park Avenue (Credit: Getty Images)

Linda Macklowe’s attempt to appeal a divorce judge’s ruling in her bitter divorce with Harry Macklowe was shut down.

In a ruling Thursday, the New York appellate division said the judge in the developer’s contentious divorce last year properly valued both his real estate assets and the pricey art collection he owned jointly with ex-wife. The developer’s share of the profits at 432 Park Avenue is $2.5 million, according to the court.

After the ruling, Linda filed an appeal based on the fact that during the messy divorce trial, the former couple’s hired experts came up with vastly different valuations for the developer’s “promote” at the iconic 432 Park, including one as high as $400 million.

But the court Thursday said an expert Linda herself hired offered a scenario in which Macklowe’s share of the profits were “diluted with the influx of capital from outside equity investors.”

“Not only did plaintiff fail to cite any provision of the contracts in support of her argument that a higher valuation was warranted, but, in addition, her expert, in presenting such a scenario, implicitly agreed that a $2.5 million valuation was possible,” the court wrote.

Ultimately, the couple’s holdings were split down the middle. After a 12-month court battle, Harry and Linda were ordered to sell their $700 million art collection. And Harry held onto $82 million in real estate.

Thursday’s ruling also found the divorce court properly valued the Macklowes’ marital debt at $66.8 million based on financial statements supplied by the developer’s accountant. The appellate court said although there was evidence the debt was less than half that amount, there was another financial statement estimating it was $67.5 million.

“Under the circumstances,” the court found, “we find no reason to disturb the court’s valuation.”

 

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