Billionaire-backed $2 B Deal Threatens Eviction of Pierre Co-op Residents

Inside the Pierre, a landmark Fifth Avenue building, the board is entertaining a $2 billion offer from Sabre Park Avenue LLC, a vehicle owned by Harvard-educated lawyer Motasem Khashoggi, cousin of the late Saudi arms dealer. The buyer would enlist the Dorchester Collection, linked to Brunei’s sovereign wealth fund, to run the property after a likely eviction of the 77 co-op owners and the dismissal of about 700 staff.

A two-thirds shareholder vote this fall will decide the fate; failure to meet the threshold could preserve ownership, but approval would force residents—among them Tory Burch, Austin Hearst, Princess Firyal, Art Garfunkel and Irwin Winkler—to surrender their units or lose their share of the proceeds. Critics, including Burch, claim the process lacks transparency, pointing to sealed-envelope price offers and a disputed meeting where the Dorchester presentation was described as tone-deaf.

The deal is being brokered by Newmark Group, a Cantor Fitzgerald affiliate now run by Howard Lutnick’s sons, raising concerns about conflicts of interest. Meanwhile, the existing operator Taj Group has offered $300 million for renovations without displacing residents, but the board has rejected that proposal.