Proposed $2 Billion Pierre Building Sale Fails Due to Deposit Shortfall

A proposed $2 billion sale of the Pierre, a combination hotel and co-op on Fifth Avenue, failed after the prospective buyer, Saudi investor Motasem Khashoggi, did not produce a $100 million deposit by the deadline. The plan, which was championed by a commerce secretary under Donald Trump, involved a top-to-bottom overhaul that would have forced every resident to sell and move out. Howard Lutnick was a driving force behind the sale and helped shape the pitch for Khashoggi.

Had the sale closed, Howard Lutnick would have cleared about $60 million on his penthouse unit, and Newmark Group would have received a $30 million advisory fee. The failure of the deal means these financial outcomes did not materialize, while residents like Art Garfunkel avoided forced displacement.