New York's Most Expensive Home Faces Historic Loss as High-Profile Owners Depart
A $67.5 million purchase is poised to sell for $12 million, highlighting a trend of declining values amid soaring maintenance costs at the iconic Sherry-Netherland.
A storied Fifth Avenue cooperative apartment, once purchased for $67.5 million, is now in contract for $12 million, potentially marking the largest single residential sale loss in New York City history. The full-floor residence at the Sherry-Netherland, previously owned by jailed Chinese national Guo Wengui, was listed at $12 million. If the sale closes at this price, it would represent a staggering $55.5 million discount from its 2015 purchase price.
Guo Wengui, also known as Ho Wan Kwok or Miles Kwok, faces substantial debts and is selling the apartment through a bankruptcy trustee. He was convicted in July 2024 on racketeering conspiracy, wire fraud, securities fraud, and money laundering charges, receiving a 30-year prison sentence. He maintains his innocence and is appealing his conviction and sentence.
The Sherry-Netherland, a nearly century-old building known for its opulent style and hotel-like services, has seen a significant decline in property values. Another apartment in the building, which sold for $11.1 million in 2011, is now listed for $1.6 million, an 85.6% decrease. Brokers suggest that owners are questioning the viability of holding properties with such drastic price drops.
Soaring Maintenance Fees Impact Property Values
The dramatic fall in sale prices is closely linked to the building's soaring monthly maintenance fees, which are among the highest in the city. The apartment now in contract, for instance, carries monthly maintenance fees of $85,654, in addition to one-time assessment fees for building upkeep and renovations. These fees have nearly doubled in the past decade, increasing from $6.67 per square foot in 2016 to $12.15 in 2026, according to appraiser Jonathan Miller of StreetMatrix.
Despite the high costs, the building continues to attract notable residents and buyers. It has historically been home to figures such as Diana Ross, Francis Ford Coppola, and Judge Judy Sheindlin. The building's services include daily housekeeping and evening turn-down service, amenities that Prince Lorenzo Borghese, a former resident, described as unparalleled.
Other elite buildings offering similar hotel-like services, such as The Pierre and The Carlyle, also have high maintenance fees. However, Miller noted that The Carlyle's fees are the highest, at $18.53 per square foot, followed by the Sherry-Netherland.
Renewed Interest Amidst Market Shifts
Recent sales suggest a potential turnaround in interest for the building, despite the challenging financial landscape. Former Disney CEO Michael Eisner recently purchased a unit for $10 million off-market. Actress Marlo Thomas also acquired an apartment for $2.75 million in August, a significant drop from its 2012 sale price of $8.5 million. This unit, previously listed with elaborate finishes and Central Park views, incurred monthly maintenance fees of $26,432, plus additional assessment fees.
The apartment previously owned by Guo Wengui, a 7,000-square-foot unit described as the second-largest in the building, has been gutted and requires substantial investment for restoration. The combination of high maintenance, extensive repair needs, and the high-profile legal troubles associated with its former owner has contributed to its steep discount.
Brokers indicate that the dramatic price reductions, coupled with a reported "war" over the fate of the nearby Pierre hotel, may be spurring renewed interest from buyers, signaling a potential, albeit costly, new chapter for the iconic Sherry-Netherland.