Weekend Argus (Saturday Edition)
HIGH SALE Diamond in the sky for patron of arts
NEW YORK – In Manhattan, where multimillion-dollar real estate sales are downright routine, a hedge fund tycoon has managed to set a new standard for conspicuous consumption by paying a fortune for an unfinished piece of property in the sky.
The billionaire, Kenneth Griffin, spent $238 million (R3.1 billion) on a penthouse at 220 Central Park South which is still under construction, making it the most expensive residential sale in US history.
What’s more, in a New York tale that is not entirely uncommon, the 79-storey building where Griffin’s penthouse will soon exist was built after the landlord evicted dozens of middle-class tenants from their rent-stabilised apartments in what was a fairly modest, white-brick building with 20 floors.
With a net worth estimated at $10bn, Griffin, founder and chief executive of global investment firm Citadel, is among the richest people in the world. And in recent years, he has become increasingly willing to flaunt his wealth, spending lavishly on modern art, philanthropy and trophy real estate.
He is a globe-trotting homebuyer, leaving a trail of his pricey purchases, from a $60m penthouse in Miami to a $122m mansion in London.
All told, according to a person familiar with
Griffin’s spending, he has shelled out about $700m on property and nearly as much on art.
He has also given away about $700m to art museums and educational institutions.
Recently, he turned his acquisitive eye towards real estate and is now widely known as “the man who bought the penthouse for the outrageous price”.
There was nothing ostentatious about the old building, the one that was mostly demolished by 2013, save for the sought-after address and the spectacular views of Central Park. It first opened in 1954.
A state law gives landlords the right to remove tenants from rent-stabilised apartments if they plan to demolish a building and erect a new one, showing proof of financing to do so. Residents received their first eviction notices in 2006. A group of tenants held on for as long as possible, suing to stay, but eventually settled for an undisclosed amount.
Connie Collins, a former TV journalist who worked at WNBC, was one of the holdouts. She recalled being able to see the July 4 fireworks displays from her 12th-floor terrace. “I just hope one of his terraces doesn’t get burnt from a spark because it’s so far up,” said Collins, 71. She said her monthly rent for a two-bedroom apartment was a little over $2 000 when she moved in in 2008. “It was a great time and an affordable time,” she said.