Landlords Demand NYC Socialite Sell Basquiat Painting to Cover $2.3 Million in Back Rent

Landlords of a luxury Manhattan building are petitioning a court to compel socialite Libbie Mugrabi to sell her valuable Jean-Michel Basquiat painting to settle a debt of $2.3 million in unpaid rent.

The landlords of The Park Mansion, located at 320 E 82nd St. in Yorkville, claim Mugrabi, the ex-wife of art dealer David Mugrabi, owes the substantial sum. A previous court order in 2023 directed Mugrabi to pay $1.8 million, but the landlords filed a new suit in June to recover the outstanding amount with 9% interest.

Mugrabi occupied the $28,000-per-month apartment for less than a year between 2019 and 2020. Court documents indicate that her lease expired in November 2020, and she ceased rent payments in April of that year.

The landlords' latest petition names Mugrabi, her company Moo Moo Enterprises, and Phillips Auction House as respondents. The petition, filed in New York Supreme Court on October 9, states that the Untitled 1982 Basquiat painting is valued between $4 million and $6 million. However, a separate complaint filed by Mugrabi against Phillips Auction House in June places the artwork's value at $30 million.

Phillips Auction House was initially slated to auction the painting in October 2024. However, the sale was withdrawn due to an ongoing legal dispute initiated by Empire Chesapeake Holdings, an art-lending investment company. Empire Chesapeake Holdings alleges that Mugrabi placed a lien on the painting.

The landlords are also requesting a temporary restraining order to prevent the sale of the Basquiat painting until a judicial decision is reached.

Mugrabi was recently ordered in September to auction her $25 million Hamptons mansion, having previously stated her intention to relocate to Florida. Attempts to reach Mugrabi for comment were unsuccessful. Attorneys for Moo Moo Enterprises, the apartment owners, and Phillips Auction House also did not respond to requests for comment.