Initial Promise

In 2011, Michael Stern and partners acquired the Art Deco New York Telephone Building in Chelsea, with the vision of transforming it into a premier luxury condominium. Renamed Walker Tower in honor of architect Ralph Walker, the 1929 skyscraper underwent meticulous restoration and was equipped with high-end amenities.

The 50-unit conversion launched in 2013, marketed as downtown Manhattan’s most exclusive address. It garnered significant attention, including a then-record penthouse sale for approximately $50.9 million to an international buyer. By 2014, the project was fully sold out, celebrated for blending historic elegance with modern luxury. Stern himself took residence in a duplex unit, signaling confidence in the development.

Challenges and Controversies

Despite its early success, Walker Tower faced significant setbacks. Reports emerged linking the penthouse sale to funds allegedly tied to the 1MDB Malaysian money-laundering scandal. U.S. authorities seized the unit, and in 2020, it was auctioned for $18.25 million—a 64% decline from its original price. The condo board, dismayed by the discounted sale, pursued legal action to reclaim the unit, though their efforts were unsuccessful. This event drew widespread attention and raised concerns about the building’s market perception.

Further challenges arose as the market for Walker Tower’s luxury units softened. In 2017, Stern sold his duplex for $21 million, a 24% reduction from his initial asking price of $27.8 million, reflecting broader pricing pressures. While the development team secured profits, some condo owners faced significant financial losses amid negative publicity.

Walker Tower’s experience highlights the vulnerabilities of even well-executed real estate projects to external financial controversies and market shifts. The building remains a notable case study in the volatility of luxury real estate.

We hope that interested parties will send us any available information and documents exposing Stern’s fraudulent activities.