There are luxury apartment buildings in New York City, and then there is 15 Central Park West.
Occupying an entire block directly across from Central Park, 15 CPW is arguably the most desirable building on one of the most desirable residential stretches in the world. Architect Robert A.M. Stern designed its enormous limestone façade to resemble the great prewar apartment houses of Manhattan, but the amenities inside are thoroughly modern—and thoroughly absurd.
Residents enjoy a private cobblestone motor court, a staffed dining room with an in-house chef, a private library, landscaped gardens, wine cellars, a billiards room, conference facilities, a 20-seat screening room, and a 14,000-square-foot fitness center anchored by a 75-foot swimming pool. The building employs more than 50 people, including doormen, concierges, lobby attendants, porters, and engineers.
Over the years, people who have owned apartments or lived at 15 CPW have included:
- Denzel Washington — Bought for $13 million in 2006.
- Robert De Niro — Rented for $125,000 per month in 2014.
- Mark Wahlberg — Rented for $32,000 per month in 2009.
- Sting — Bought for $27 million in 2008 and sold for $50 million in 2018.
- Kelsey Grammer — Rented for $29,000 per month around 2010.
- Norman Lear — Bought for $10 million in 2008 and sold for $17.5 million in 2022.
- Alex Rodriguez — Rented for $30,000 per month in 2014.
- Jeff Gordon — Bought for $9.67 million in 2007 and sold for $25 million in 2013.
- Bob Costas — Bought for just over $11 million in 2007.
- Spanx founder Sara Blakely and her husband, Jesse Itzler — Blakely bought for $12.11 million in 2008 and sold for $30 million in 2014.
- Former Goldman Sachs CEO Lloyd Blankfein — Bought for $26 million in 2008.
- Former Citigroup CEO Sandy Weill — Bought for $43.7 million in 2007 and sold for $88 million.
- Russian billionaire Dmitry Rybolovlev — Paid $88 million for Weill's penthouse for his daughter in late 2011.
Sandy Weill's $88 million sale briefly set the record for the most expensive residential transaction in New York City history.
In other words, 15 Central Park West is more than an apartment building. It is a limestone monument to extreme wealth—a private kingdom for celebrities, Wall Street titans, tycoons, billionaires, and centimillionaires.
But 15 Central Park West was not always a luxury home for the ultra-rich.
Not that long ago, the property was occupied by the Mayflower Hotel, an aging 18-story building whose upper floors included apartments occupied by longtime rent-regulated tenants.
In 2004, developers Arthur and Will Zeckendorf joined with Goldman Sachs and billionaire Eyal Ofer's Global Holdings to acquire the Mayflower and the adjoining land for $401 million. Their plan was to demolish everything and construct the luxury condominium complex that stands there today.
There was just one complication. The tenants had to leave first.
Most tenants took early buyouts. A handful held out for larger amounts. But through it all, one man remained.
His name was Herbert J. Sukenik.
Photo via King of Hearts/Wikimedia Creative Commons
Who Was Herbert Sukenik?
Herbert Sukenik was born in the Bronx in 1930. Brilliant from an early age, he completed his undergraduate studies at Cornell University in just three years before earning a master's degree and Ph.D. in physics. He also earned a medical degree.
Herb went on to work at General Electric's research laboratory and became chief of space medicine at the Martin Company's Space Systems Division. He later worked at Massachusetts General Hospital, where he was involved in the hospital's early adoption of computer technology.
Despite those impressive credentials, Herb gradually withdrew from professional and social life. His father left him enough money that he did not need to work.
In August 1974, Herb moved into a rent-regulated apartment on the upper floors of the Mayflower Hotel. To reach Herb's unit, you took the elevator to the highest landing, then walked up two flights of stairs.
It was a tiny unit. Just 350 square feet. But it had everything Herb needed. A kitchenette, a bathroom, four exposures, and, most importantly, absolutely incredible direct views of Central Park, the East River, and the Hudson River.
According to author Michael Gross, who chronicled the building in his book "House of Outrageous Fortune: Fifteen Central Park West, the World's Most Powerful Address," Herb never married and became increasingly reclusive. He rarely allowed hotel employees into the apartment, which eventually became crowded with clothing, computers, magazines, and approximately three decades of scientific journals.
This was not a penniless tenant desperately clinging to the only home he could afford. Herb had independent means. He was also highly intelligent, intensely stubborn, and fully aware of the extraordinary bargaining position he occupied.
The Last Tenant Standing
After acquiring the building for $401 million in 2004, the Zeckendorfs hired a relocation attorney to negotiate with the Mayflower's remaining rent-regulated tenants. A bunch of tenants quickly accepted the first offer, which was in the hundreds of thousands per unit.
Several longtime residents held out a bit longer, but eventually accepted $1 million payoffs. One of these tenants was Arthur MacArthur IV, the reclusive son of World War II General Douglas MacArthur. He used his buyout to purchase a condominium nearby.
With each offer, Herb Sukenik, if he could even be reached, was a hard pass.
Brilliantly, Herb refused to begin serious negotiations until the other holdouts were gone. He understood a basic rule of real estate development: The final tenant is far more valuable than the first.
By the time Herb was the only resident left, the Zeckendorfs controlled a nearly empty 52,000-square-foot property that was costing them enormous amounts of money in taxes, insurance, financing, and other carrying expenses. Every month Herb remained in place delayed the luxury development they intended to build.
Herb had initially insisted that he did not want a large cash payment. He simply wanted a better apartment with a view of Central Park.
The developers showed him a 2,200-square-foot, two-bedroom apartment on the 16th floor of the Essex House at 160 Central Park South. The Zeckendorfs agreed to purchase the apartment for approximately $2 million, furnish it, retain ownership, and allow Herb to live there for the rest of his life.
Herb would pay just $1 per month in rent.
The two sides appeared to have a deal. The Zeckendorfs even purchased the Essex House apartment while waiting for the agreement to be finalized.
Then Herb stopped responding.
"Now I Have a Lawyer"
When he resurfaced, he had hired David Rozenholc, one of New York City's most formidable tenant attorneys. Herb informed the developers that the previous arrangement was no longer enough. He still wanted the apartment, but now he wanted a substantial cash payment as well.
The Zeckendorfs decided to play hardball. They divided the building's lobby and began demolishing the vacant portion of the Mayflower around him. Jackhammers pounded for hours. Walls came down. Plaster flew. The developers hoped the relentless noise and disruption would finally drive their last tenant away.
Herb's response was essentially: Keep going.
He told them he enjoyed watching the construction and loved the noise. Rather than weakening his resolve, the demolition only proved how desperately the developers needed him gone.
Meanwhile, the developers also began the lengthy legal process of attempting to evict him through a demolition proceeding. But that path could take years, and the Zeckendorfs already had hundreds of millions of dollars tied up in the site.
What would it take to make Herb leave?
The answer was large enough to make the developers reconsider just how badly they wanted the property. But by that point, they had little choice. Every delay added to their carrying costs and pushed back construction on a building that promised to generate billions of dollars in apartment sales.
Herb had them exactly where he wanted them.
The Buyout
In 2005, after roughly two years of negotiations, the Zeckendorfs finally surrendered.
To persuade Herb to leave his 350-square-foot apartment, they agreed to pay him:
$17 million
It remains the largest known payment ever made to persuade a single tenant to vacate a New York City apartment. Possibly the world.
And that was only part of the deal.
Herb also received lifetime use of the 2,200-square-foot Essex House apartment the developers had already purchased for approximately $2 million. His rent was set at just $1 per month for the rest of his life.
Herb's attorney, David Rozenholc, received one-third of the cash settlement. As a joke, Rozenholc gave the developers a check for $120 to cover Herb's first 10 years of rent. He even inserted a provision requiring the Zeckendorfs to refund the unused portion if Herb died before the decade was over.
The first wrecking ball struck the Mayflower just two days after Herb received his check.
What Happened to Herbert Sukenik?
Herb moved into the Essex House apartment but continued to live as a recluse. The enormous buyout changed his address and his bank balance, but apparently not his personality or lifestyle.
He remained in the apartment until his death in January 2011 at the age of 80. His estate was valued at approximately $9.8 million and passed to his brother.
Having passed away just five years into the deal, Herb's multi-million-dollar estate was technically entitled to a $50 rent refund from the Zeckendorfs. Unclear if they ever paid 🙂
The Rise of 15 Central Park West
With Herb finally gone, the developers demolished the Mayflower and moved forward with 15 Central Park West.
The project ultimately cost approximately $950 million and was completed in 2008. It quickly became one of the most celebrated and expensive residential buildings in the world.
The Zeckendorfs undoubtedly made a fortune from the development. Paying Herb $17 million was painful, but compared with the value of the project he was delaying, it was ultimately a cost of doing business.
Herb, meanwhile, executed what may have been the greatest tenant holdout in real estate history.
He recognized that the developers did not merely want his apartment. They needed it. Hundreds of millions of dollars, years of planning, and one of the most ambitious luxury developments in New York history were all being held up by one man living above an aging hotel's highest elevator landing.
Every other tenant had a price. Herb simply made sure his was unforgettable.
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