Macklowe sues former 432 Park retail partner
Developer seeking $3.3M in commercial leasing fees at supertall
Macklowe Properties is suing its former retail partner at 432 Park Avenue for $3.3 million in unpaid leasing fees.
The fees relate to the lease of the 71,000-square-foot retail space now occupied by auction house Phillips de Pury, according to Crain’s, which first reported the suit filed in New York Supreme Court.
The gallery space, at the base of the supertall luxury tower, was jointly owned by Macklowe and Sheikh Hamad Bin Jassim bin Jaber Al-Thani, the former prime minister of Qatar and chairman of the Qatar Investment Authority, until 2017, when they terminated the agreement and Al-Thani became the sole owner through a limited liability company.
Phillips de Pury signed its lease in 2019 and Macklowe was due to receive a standard leasing fee from the entity controlled by Al-Thani, according to the suit. The auction house’s 15-year lease is for almost $122 million and Macklowe sent an invoice for $3.3 million.
But the entity tied to Al-Thani refused to pay, demanding that Macklowe deduct $1.4 million in commissions owed to CBRE and Cushman Wakefield.
Macklowe is suing for money damages plus interest for the alleged breach of contract.
[Crain’s] — Erin Hudson