Cerberus Capital Management CEO Stephen Feinberg has invested in a money pit. No, not Chrysler: A 103-year-old townhouse whose renovation costs have skyrocketed as the work has dragged on for five years.
WSJ: As head of the giant investment firm that controls ailing Chrysler, Stephen Feinberg has a fixer-upper on his hands.
As a homeowner, he’s been in a similar predicament for years.
A messy renovation of Mr. Feinberg’s Manhattan townhouse has been a big turnaround project. Remodeling of the 103-year-old building has cost some $15 million, about triple early estimates, and dragged on for five years, nearly twice as long as expected. Mr. Feinberg — whose net worth exceeds $1 billion, according to a Forbes magazine estimate made last year — has missed payments, written checks that didn’t clear and had liens filed on the property, say people who’ve worked on the project. Mr. Feinberg has said it’s been “nightmarish,” according to friends. And it’s not over yet.
The most startling part of this article: That so many folks went on the record. Neither Stephen nor his wife would comment (duh!) but everyone else who’s worked on or been marginally involved with the project is dishing, complaining about missed payments, describing the condition of the house, how Feinberg feels about the renovation. Cerberus exec Tim Price even explains the check-bouncing.
Feinberg has been notoriously confrontational about press coverage of his firm, so we’d be surprised if half of the people mentioned still have their jobs by the end of this week. (That is, everyone with the possible exception of James Russo: He didn’t know who Feinberg was or what firm he worked for. And what does Russo do? He runs the company that provided security for the renovation.)
Photo of the house from the WSJ
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