Record executive and producer David Geffen finalized a deal last week to buy the luxury penthouse apartment owned by socialite Denise Rich on Manhattan’s Upper East Side for record-smashing $54million.
Rich, 68, the Grammy-nominated songwriter who renounced her American passport in November, was originally asking $65million for the stunning 12,000 square-foot Fifth Avenue dwelling, but settled for a sum nearly 17 per cent lower than her asking price, according to the Wall Street Journal.
Still, the deal marks the highest price ever paid for a co-op in Manhattan, according to Jonathan Miller, president at Miller Samuel Real Estate Appraisers & Consultants.
By dumping her U.S. passport, Rich will likely save tens of millions of dollars or more in U.S. taxes over the long haul, tax lawyers say. However, she will still have to pay exit tax on her penthouse.
It is a matter of much speculation that the wealthy Ms Rich left the States so as not to pay any income tax – if that is the case, than she can afford a few million dollars loss.
The New York Post’s Page Six exclusively reported the massive sale, noting that Geffen already lives in the building and will likely spend two years renovating the space.
Geffen’s apartment is directly below the one he just purchased. Sources tell Page Six that Geffen plans on selling his old place rather than combining the two properties.
The penthouse sits on Fifth Avenue, right outside of Grand Army Plaza, the Plaza Hotel, and Central Park. The Corcoran listing for the apartment calls it ‘the epitome of luxury and grandeur.’
Complete with 11ft ceilings and custom mahogany doors, the apartment boasts seven bedrooms and 11 baths, as well a library, two fireplaces, and wraparound terraces.
The plush apartment offers sweeping views of the city, all the way across Central Park and to Columbus Circle. The dining room, which is off of the chef’s kitchen, can seat 22, and leads to one of three terraces.
The incredible space also has two kitchens, a full gym, and a professional recording studio that was used by Rich. Page Six reports that the DreamWorks founder will likely tear it out.
But aside from the $54million price tag, Geffen will have to pay a monthly maintenance fee of $25,000.
Rich has written songs recorded by Aretha Franklin, Mary J. Blige and Jessica Simpson, and Mandy Moore, to name a few.
When she listed the apartment in January, Rich told the Post that she had outgrown the space, as her daughters had recently moved out. ‘My greatest hope is that the next family loves and enjoys this home as much as we did.’
She now plans to live in London, it is said, and is a frequent habitué of Cannes, Monte Carlo, and St. Tropez, often sailing to each port on her 157-ft yacht, Lady Joy.
But Geffen and Rich were supposedly not on the best of terms.
According to Page Six, Geffen threatened to take Rich to court after her Jacuzzi flooded, soaking parts of Geffen’s apartment. She later settled with him out of court.
Geffen, 69, is a stalwart in the media world, with properties both in New York and Malibu. He is the proud owner of a 453-foot yacht called the Rising Sun, which he bought from Larry Ellison.
He expanded his maritime collection after he reportedly purchased one of Roman Abramovich’s yachts, the 377-foot Pelorus, for $300million.
Forbes ranks the University of Texas dropout’s net worth at $5.5billion. He began his career sorting mail at the William Morris talent agency, the magazine reports, and worked his way up from there.
He parted ways from his much younger boyfriend, Jeremy Lingvall in February, the Post said. Lingvall, 28, is a graduate of the University of Santa Barbara.
Sources said that there was no one else involved in the split.