The wealthiest Russians are said to be trying to quietly sell their Manhattan properties amid fears they could soon face sanctions.
As the oligarchs’ yachts are confiscated around the world and their assets are frozen in an attempt to pressure Vladimir Putin to end the war in Ukraine, some Russians are trying to preemptively cash in on their New York properties.
According to reports, investments in Russian real estate amount to at least $1 billion.
Nearly 61 properties are already up for sale or have lowered their prices, according to Fox Business, and at least 70 more are considering a so-called “whisper sale” – to get rid of property privately without listing it on the market.
The wealthiest Russians are said to be trying to quietly sell their Manhattan properties amid fears they could soon face sanctions.
“Everything is checked there,” said Dolly Lentz, a real estate agent.
She told Fox that over the past week her firm has received calls from Russian clients who wanted a “whisper list” of 50 to 70 properties, mostly in Manhattan.
They haven’t pulled the trigger yet. They’re getting ready to pull the trigger.
“It means, ‘Yes, I’ll take whatever can get me the best offer.’
“That might be what comes to mind. So really, depending on the sanctions, and you know where we are with everything, that’s all we see potentially – it’s playing out.”
Alexei Kuzmichev, 59, the owner of Alfa Bank, Russia’s largest private bank that has come under US sanctions, has listed his $41 million Manhattan four-unit home for sale (pictured)
Kuzmichev’s luxurious home is up for sale for $41 million on the Upper East Side.
Aleksei Kuzmichev, 59, owner of Alfa Bank, Russia’s largest private bank subject to US sanctions, has listed his $41 million Manhattan four-unit house for sale.
Many of the listings were on Manhattan’s Billionaire Street, according to Fox.
Not all listings were private.
Alexei Kuzmichev, 59, the owner of Alfa-Bank, Russia’s largest private bank under US sanctions, has listed his $41 million four-unit Manhattan home for sale.
He bought the Upper East Side property at 33 East 74th Street in 2016 for $42 million.
According to Forbes, the fortune of the financier is estimated at 6.2 billion dollars.
His neighbor is Bob Iger, the former CEO of The Walt Disney Company, who owns the penthouse.
Another candidate for sale is Valery Kogan, the billionaire owner of Moscow’s Domodedevo Airport, and his wife Olga.
The couple are quietly buying their apartment at the Plaza Hotel for $50 million, according to sources who spoke to The New York Post.
They are also selling their other Upper East Side home at 515 Park Avenue, as well as an Upper West Side residence at 15 Central Park West.
The couple also intend to sell the estate in Greenwich, Connecticut, at 18 Simmons Lane, according to The Post.
Valery Kogan is reportedly looking to sell his property at the Plaza Hotel.
Kogan (pictured) is the owner of Moscow’s main airport and is reportedly close to Putin.
Lentz said she had many clients from Russia a decade ago, but in recent years they have been replaced by those who fled Hong Kong or Taiwan.
“They kind of fell silent,” Lenz said.
“And now they are there only because they want to liquidate before the crisis.
“If you ask me to guess, because obviously not everyone tells you everything they think, nor should they.
“I think they are more afraid of what will happen in the future than knowing absolutely what will happen in the future. “They’re trying to get ahead of him.”
Two Democratic MPs, Senator Brad Hoylman and Assemblyman Emily Gallagher, representing Manhattan and Brooklyn respectively, introduced legislation last week aimed at cracking down on “secret real estate investment patterns in New York among the international elite through anonymous LLCs and the use of new York LLC by wealthy citizens of Russia in the state of New York for the purchase of luxury homes.
The bill would require LLCs to disclose information about their owners to the New York State Department and create a public database of which LLCs have common ownership.
Russians are estimated to own more than $1 billion worth of Manhattan real estate, many of which are on Billionaire Street (pictured), but some have put their New York properties up for sale for fear of an asset freeze.
Valery Kogan, billionaire owner of Moscow’s Domodedevo airport, and his wife Olga. The couple are quietly buying their apartment at the Plaza Hotel for $50 million, according to sources who spoke to The New York Post. They are also selling their other Upper East Side home at 515 Park Avenue (right) and an Upper West Side residence at 15 Central Park West (left).
It alleges that anonymous LLC landlords have caused code violations in the Hudson Valley for years, leading to a 2019 State Senate investigation, as well as needlessly delaying tens of thousands of applications for rental assistance during the pandemic era.
But using an LLC to buy luxury real estate is common practice, so it’s not clear if the proposed law will be considered.
“Every buyer we’ve ever taken on has created a new LLC for every property. I think most wealthy people buy an LLC for whatever reason,” Lenz said.
“We welcome any transparency in every transaction. We personally do our best to make sure we know who we are dealing with.
“Even though we don’t have (know your customer) rules in real estate like in banking – you have to check everyone they’ve talked to – we don’t have to, but we do.
“We don’t want to talk to anyone we find unpleasant,” she added.
“It’s not because they’re unpleasant, but because they’re afraid of being attached to the situation.”