Howard Lutnick has not earned many fans in the eight months since becoming Donald Trump’s commerce secretary, a turn of events that probably has something to do with his embrace of deeply unpopular tariffs, his declaration that said tariffs are “worth it” even if they cause a recession, and his bold claim that only a “fraudster” would complain about missing a Social Security check. But according to new reports, the billionaire former trader and ex-chairman of a real estate firm also recently earned a number of enemies a lot closer to home, i.e. his neighbors at The Pierre, some of whom are pissed about a possible deal to sell the building and potentially evict the residents in the process—which they’ve blamed squarely on the Trump appointee.
A source told Page Six that at a “star-studded” and “contentious” board meeting last week, fashion designer Tory Burch “lost her usual cool and reserved demeanor” when discussing the prospect of The Pierre—which is both a hotel and a residence—being sold, with part of the funding being provided by the Saudi Khashoggi family, according to The New York Times. It’s a potential transaction that has been negotiated under the guidance of Lutnick’s former real estate firm, which could result in Burch and other homeowners being forced to move out. “Tory, polite at first, raised her voice and was clearly angry about the ‘fast’-moving deal that would displace her from the apartment where she has lived for about two decades,” a source told Page Six. Said another insider, “Tory got progressively madder…. There were dozens of shareholders in the private meeting room, with others joining in by Zoom.” Tina Beriro, another resident of the building, reportedly told the board in an email, “I am an 84-year-old widow with no family and have just redone my apartment at great expense…. To find new accommodations and go through the trauma, exhaustion, and money involved in a move would seriously affect my health, well-being, and finances.” Other residents of the building include former Disney chief Michael Eisner, musician Art Garfunkel, and media mogul Shari Redstone. While Lutnick purchased the biggest unit in the building—a 12,000-square-foot triplex penthouse—in 2017, he apparently has yet to move in.
As The New York Times reported earlier this month, in 2023, Lutnick urged The Pierre’s board of directors to hire a new management company for the building, which its residents considered to be “falling apart.” The board retained his then real estate firm,* Newmark Group. According to the Times, after “months of discussions” some members of The Pierre’s “transactions” committee determined the current management company, Taj Hotels, was unwilling to put enough money into the property to address the issues, and Newmark and the board began to explore a sale. They are now in the “final stages of negotiations” to sell for approximately $2 billion, with the Khashoggis expected to “provide at least some of the funding for the purchase,” and the Dorchester Collection, owned by the sultanate of Brunei, managing the building following a renovation. Residents could be required to move out.
According to the Times, through the summer of 2024, Newmark earned nearly $100,000 in monthly consulting fees; industry experts told the outlet the company could collect tens of millions on the possible $2 billion sale. While 50% of residents are said to be opposed to the plan, if two thirds of the residents’ shares are ultimately cast in favor of the deal, it will go through. Per the Times, as Lutnick owns the largest unit in the building, and the 129,000 shares that come with it, he holds both the most voting power and stands to make the most money on the sale when the proceeds are divided.
*Lutnick stepped down from Newmark (and his other firm, Cantor Fitzgerald) after being confirmed as commerce secretary. Several months later, he sold his stock in Newmark (according to the Times, his family members “retain stakes there”). A spokesperson for the Commerce Department told the Times that Lutnick has not been involved in the potential sale for many months, and that he is unaware of the specifics of the most recent offer.