{"id":378465,"date":"2026-10-21T00:54:24","date_gmt":"2026-10-21T00:54:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/378465\/"},"modified":"2026-10-21T00:54:24","modified_gmt":"2026-10-21T00:54:24","slug":"nycs-pierre-faces-repair-questions-after-2b-sale-collapses","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/378465\/","title":{"rendered":"NYC\u2019s Pierre faces repair questions after $2B sale collapses"},"content":{"rendered":"

The sale is dead. But questions surrounding the future of Manhattan\u2019s famed Pierre hotel remain very much alive.<\/p>\n

Residents of the East 61st Street co-op \u2014 some of whom are among the wealthiest people in America \u2014 last week escaped a highly contested $2 billion buyout<\/a> that would have forced them from their homes over a proposed renovation to turn their building into a hotel and residence managed by the Dorchester Collection. Once completed, they would have been offered an option to buy back in.<\/p>\n

But now, a week after the Pierre\u2019s would-be buyer Motasem Khashoggi \u2014 a cousin of the late Saudi arms dealer Adnan Khashoggi \u2014 failed to deliver a $100 million deposit by the Oct. 13 deadline, shareholders now face a brand new nightmare: unanswered questions regarding how the building\u2019s necessary, and extensive, repair needs will be financed.<\/p>\n

The Pierre\u2019s proposed $2 billion sale collapsed after the buyer missed a $100 million deposit deadline. Brian Zak\/NY Post<\/p>\n

Saudi businessman Motasem Khashoggi had proposed buying the Pierre for $2 billion. The Food District Company<\/p>\n

\u201cWe\u2019re still in the process of understanding \u2026 how we move forward,\u201d one building resident told The Post. \u201cThere\u2019s so many different components that need to be figured out \u2014 and will be.\u201d<\/p>\n

Khashoggi, for his part, claims he had the funds but that his bank had delayed the wire transfer for weeks, according to the New York Times<\/a>.<\/p>\n

The deal\u2019s collapse removes the immediate threat of residents being forced out, but leaves the building\u2019s repair needs shrouded in mystery. The co-op must now work out a renovation and funding plan with Taj Hotels, the building\u2019s current operator.<\/p>\n

A Pierre shareholder familiar with the discussions said the board has commissioned a new engineering report to determine the price of repairs. Previously, according to Vanity Fair<\/a>, engineers hired by the co-op\u2019s board previously identified at least $182 million in upgrades.<\/p>\n

Commerce Secretary Howard Lutnick owns a penthouse at the famed Fifth Avenue hotel and co-op. AP Photo\/Alex Brandon<\/p>\n

But that figure has also varied, and residents say they don\u2019t know what to believe. <\/p>\n

Taj previously reported repairs to the tune of $300 million. Separately, a person familiar with the building on Tuesday told The Post repair costs edged closer to $400 million.<\/p>\n

Some repairs would be Taj\u2019s responsibility, while other costs could be shared with the co-op\u2019s residents \u2014 some of whom include fashion designer Tory Burch, Oracle billionaire Larry Ellison and Trump\u2019s secretary of commerce Howard Lutnick \u2014 in the form of assessments, the shareholder said. The final division of costs, and whether shareholders will face stratospheric monthly bills, remain unresolved as negotiations continue.<\/p>\n

Renowned fashion designer Tory Burch was among residents who fought to preserve their homes at the Pierre. AFP via Getty Images<\/p>\n

\u201cWe won\u2019t know the extent of it,\u201d the resident said.<\/p>\n

Sources told The Post the aging property needs renovation. Engineering studies identified water intrusion and corroded pipes. Some work predates the failed sale: according to Vanity Fair, the facade is already undergoing a $22 million overhaul.<\/p>\n

Another shareholder told The Post residents could remain during these renovations and expressed optimism about restoring the property without displacement. Still, no final agreement has been reached.<\/p>\n

\u201cIt seems \u2026 very disconnected,\u201d they said.<\/p>\n

The co-op board and Taj Hotels are negotiating how to fund repairs. Chad Rachman\/New York Post<\/p>\n

Longtime Pierre resident Tina Beriro was among those who opposed the sale. Patrick McMullan<\/p>\n

For longtime residents, the Pierre represents a home and community, the source said, describing elderly neighbors who have lived there for decades and employees regarded as family. The prospect of having to leave had caused significant anxiety, particularly among residents in their 80s and 90s.<\/p>\n

Despite the air of uncertainty inside the building\u2019s walls and what\u2019s to come, there is still some pressure off shareholders\u2019 shoulders.<\/p>\n

\u201cI am relieved,\u201d longtime resident Tina Beriro told the New York Times last week in the wake of the deal\u2019s collapse. \u201cA group of old lady widows and divorc\u00e9es \u2014 look what we did!\u201d<\/p>\n

Residents were divided over the proposal. Some wanted to remain regardless of the payout, while others favored selling. Former Disney chief Michael Eisner<\/a>, for example, criticized Taj\u2019s management and reportedly supported a deal.<\/p>\n

David Johnson, president of the co-op board, declined The Post\u2019s request for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"The sale is dead. But questions surrounding the future of Manhattan\u2019s famed Pierre hotel remain very much alive.…\n","protected":false},"author":2,"featured_media":378466,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[1022,4709,10885,810,28047,75,9,56,63,65,64,70863,1491,57388,466],"class_list":["post-378465","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-celebrity-real-estate","tag-central-park","tag-co-ops","tag-hotels","tag-larry-ellison","tag-manhattan","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-pierre-hotel","tag-real-estate","tag-tory-burch","tag-upper-east-side"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/378465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=378465"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/378465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/378466"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=378465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=378465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=378465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}