The sale of a luxury Park Avenue penthouse, listed for $5.9 million, has been stalled by a dispute over outdoor space between the estate of the former owner and the building’s co-op board.
Penthouse Sale Halted Amid Terrace Dispute
The four-bedroom, 2.5-bathroom penthouse, located at 1049 Park Avenue, was home to Madeleine Chapman for 27 years until her death in September 2023. Chapman’s daughter, Anna Chapman, who married billionaire Ron Perelman in 2010, is now attempting to sell the property. However, the co-op board has asserted a claim to the East Terrace, a portion of the penthouse’s outdoor space.
According to a Manhattan Supreme Court lawsuit filed by Anna Chapman, the co-op previously attempted to claim the East Terrace as common space in 2017, but ultimately agreed to allow her mother exclusive use of the area. The lawsuit states that the East Terrace, which includes windows overlooking a bathroom and bedroom, “has never been used for common Building purposes.”
Attorney Adam Leitman Bailey, representing Madeleine Chapman’s estate, alleges the co-op’s current claim is an attempt to obstruct the sale. He stated, “The board of directors knows that our client is trying to sell its unit and is using extortion to claim property it does not have any rights to.” Bailey also noted the terrace’s limited accessibility and non-compliance with the Americans with Disabilities Act.
The penthouse features a private landing, a chef’s kitchen, and an in-unit washer/dryer, and boasts “breathtaking skyline views.” It had attracted interest from multiple buyers before being temporarily removed from the market.
What Could Happen Next?
The case will likely proceed through the court system. A judge could rule in favor of the estate, affirming the exclusive use of the terrace. Alternatively, the court could side with the co-op, potentially impacting the property’s value and saleability. It is also possible the parties could reach a settlement outside of court, allowing the sale to proceed with agreed-upon terms regarding the terrace.
Frequently Asked Questions
What is the current status of the penthouse sale?
The sale is temporarily off the market due to the dispute with the co-op board over the East Terrace.
What does the estate claim about the terrace?
The estate claims Madeleine Chapman enjoyed “extensive, uninterrupted, and exclusive use” of the entire terrace during her 27 years of residency and that it has never been used for common building purposes.
What is the co-op’s position on the terrace?
The co-op claims the East Terrace is a common space for the 13-story building, which has less than 40 units, but has not publicly commented on the matter.
How often do disputes like this arise in co-op buildings?
