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Edited by: Fern Sidman
In a captivating excerpt from her recently released book titled “Billionaire’s Row: Tycoons, High Rollers, and the Epic Race to Build the World’s Most Exclusive Skyscrapers,” Katherine Clarke, a staff reporter for the Wall Street Journal, narrates an intriguing encounter involving Jacob the Jeweler, a celebrity rabbi, and developer Harry Macklowe’s ambitions for his new Park Avenue tower, as was reported by the New York Post.
Around 2008, Macklowe found himself in a crowded room of Orthodox Jewish men donning dark robes and black hats. He navigated through the crowd and entered a dimly lit, windowless conference room with Formica laminate floors. The Post report indicated that in the back of the room, Macklowe came face to face with Rabbi Yoshiyahu Pinto, a mystical figure who espoused Kabbalah and appeared much older than his actual age.
Pinto, the great-grandson of the renowned mystic Baba Sali, possessed an aura that attracted a diverse range of acquaintances, including such prominent personalities as NBA player LeBron James, the now disgraced Brooklyn Congressman Anthony Weiner, philanthropist Jay Schottenstein, real estate mogul Charles Kushner, and other business magnates, the Post reported. Some considered the rabbi not just a spiritual guide but also a business advisor, seeking his blessings, advice, and even curses for their enemies.
The Post also reported that Israel’s former defense minister at the time claimed the rabbi had helped him wake up from a coma, while others claimed he had saved them from questionable business deals.
Pinto’s fame also translated into wealth, as his charitable organization, Mosdot Shuva Israel, garnered attention for renting a mansion in the exclusive Hamptons enclave for $77,000. The Post reported that Pinto was known for his lavish spending on luxury travel and expensive jewelry, such as his first-class flights and a $75,000 month-long stay in a luxury hotel in Buenos Aires.
Unlike Pinto, Macklowe was not religiously devout and had no affiliation with Rabbi Pinto. The Post reported that he had come to the meeting house solely for business purposes, which had taken an unfavorable turn. Macklowe believed he had struck a deal weeks earlier with Jacob Arabo, known as “Jacob the Jeweler,” a prominent figure in the diamond industry who catered to athletes and musicians.
Arabo’s connections with hip-hop culture extended back to the days of the legendary Brooklyn rapper Notorious B.I.G. Arabo’s clientele included high-profile names like Mariah Carey, Madonna, Jay-Z, Sean “Diddy” Combs, David Beckham, Derek Jeter, and Shaquille O’Neal. The Post also reported that Arabo, who exuded a luxurious image with his three-piece suits, slicked-back hair, and Maybach Mercedes, would bedazzle anything from hubcaps to video game controllers. The townhouse at 48 East 57th Street served as Arabo’s showroom, boasting a sleek, monochromatic retail space with VIP suites on the upper floors for private appointments, the paper reported.
The jeweler was just one of a motley array of mysterious international business people and cranky, prideful New Yorkers standing between the Macklowes and their wall of retail, the Post reported.
Macklowe and his son, Billy, were determined to overcome the obstacles standing in the way of their ambitious project. Through relentless negotiation, employing their financial resources, offering above-market prices, and even promising better locations for businesses, they engaged in the process of assemblage, assembling the necessary properties for their new tower, the Post reported. Macklowe went as far as paying close to $20 million to convince Audemars Piguet, a luxury watch company, to relocate across the street and free up one of the brownstones. Each deal required a substantial investment from Macklowe, but he believed it would be worthwhile.
By 2008, the Macklowes had acquired most of the desired properties for their tower, but a few remained elusive, including the Jacob & Co. building and a townhouse owned by Turnbull & Asser, a British clothing company. The Post reported that Ali Fayed, the brother of former Harrods boss Mohamed Al-Fayed, owned the Turnbull & Asser property and seemed impervious to the Macklowes’ efforts. The deal with Arabo, in particular, had deeply affected Harry Macklowe, according to the Post report. After weeks of negotiations, during which they agreed on a sale price of $50 million, Arabo suddenly increased the price to $100 million, claiming that his rabbi had instructed him to do so.
“I said, ‘Jacob, how could you do that? We shook hands,’” Macklowe later recalled, the Post reported.
Arabo’s answer: “My rabbi told me I should charge $100 million.”
Macklowe was incensed and arranged a meeting with Arabo and Rabbi Pinto at the meeting house to settle the matter.
The meeting did not go as Macklowe had anticipated. The Post reported that language barriers hindered effective communication, with the rabbi speaking no English and Macklowe having a limited grasp of Yiddish and Hebrew. Sitting in a circle, holding hands, the trio attempted to converse as Arabo translated Macklowe’s case to the rabbi. The Post reported that Macklowe emphasized that he could only pay $50 million, but the rabbi, visibly displeased, vehemently expressed his disagreement. Despite the language barrier, his message was clear: the deal would not happen at that price. Macklowe’s hope of persuading the rabbi and clarifying the situation had been shattered.
Subsequently, Jacob Arabo faced legal troubles and served nearly two years in prison after pleading guilty to charges related to falsifying records and providing false statements to investigators examining a drug ring, according to the Post report. Similarly, Rabbi Pinto served time in an Israeli prison after being convicted of bribery. Unfortunately for Macklowe, he never managed to acquire the townhouse he desired.
Katherine Clarke’s book, “Billionaire’s Row: Tycoons, High Rollers, and the Epic Race to Build the World’s Most Exclusive Skyscrapers,” provides an enthralling account of the larger-than-life characters and dramatic events that shape New York City’s real estate scene.
