New York Mansion Hits Market For $38 Million, But You Can't Live In It

Harry Macklowe, a prominent New York City developer, has put his Hamptons home on the market for a staggering $38 million. Situated by the exclusive Georgica Pond, the property boasts illustrious neighbors such as Steven Spielberg. However, there's a major catch—the mansion is uninhabitable.

The luxurious estate lacks a certificate of occupancy, rendering it legally unsuitable for occupancy by new owners. The reason? Macklowe allegedly engaged in illegal land clearing and construction without proper permits, violating East Hampton Village regulations and endangering the surrounding wetlands. According to officials, Macklowe faces fines for over 21 violations dating back five years.

This isn't the first time Macklowe has skirted regulations in his development ventures. In 1985, he made headlines for hiring a mob-run company to demolish four buildings on West 44th Street in New York City without permits. The move, which occurred just before the city enforced a ban on demolishing single room occupancy buildings, put lives at risk and resulted in a $2 million fine for Macklowe.

Despite the legal hurdles surrounding the Hamptons property, Macklowe has listed it at an exorbitant price. However, insiders familiar with the situation claim that the home's value is significantly lower, estimating it to be worth no more than $12 to $15 million, as reported by the New York Post.

The ongoing legal battle between Macklowe and East Hampton Village officials further complicates the property's sale. The village's Zoning Board of Appeals has refused to retroactively approve Macklowe's unauthorized construction, prompting a lawsuit from the developer.

East Hampton Village building inspector Thomas Preiato confirmed that while Macklowe can sell the house, no one can legally inhabit it due to the expired certificate of occupancy and outstanding fines. The situation underscores concerns about the environmental impact of Macklowe's actions, particularly regarding the protection of wetlands.

Macklowe, who acquired the property for $10.35 million in 2017, has remained tight-lipped about the situation, reported New York Post. His refusal to comment, coupled with his history of disregarding regulations, has raised eyebrows among real estate professionals and community members alike.

Despite the property's lavish amenities, including a pool and sprawling acreage, potential buyers may think twice before investing in a home with such significant legal complications.