Jacob the Jeweler ruined real estate big Harry Macklowe’s plans
Real estate in New York City can often feel like a grand theatrical performance, with players larger than life. In her new book Billionaire’s Row: Tycoons, High Rollers and the Epic Race to Build the World’s Most Exclusive Skyscrapers, Wall Street Journal staff reporter Katherine Clarke provides a fascinating insight into the world of real estate development in the Big Apple. In one particularly intriguing excerpt, Clarke describes the time when real estate developer Harry Macklowe found himself thwarted by a celebrity rabbi and a famous jeweler, Jacob Arabo.
It was around 2008, and Macklowe had been working on his new Park Avenue tower. He had struck a deal to purchase a townhouse adjacent to the Drake Hotel on East 57th Street, which was part of his plan to assemble a dramatic wall of retail at the base of the tower. However, things weren’t going according to plan. Macklowe thought he had a deal with the townhouse’s owner, Jacob Arabo, aka Jacob the Jeweler, but the agreement was already falling apart. Arabo’s celebrity rabbi, Rabbi Yoshiyahu Pinto, had advised him to up his price to $100 million. Macklowe was incensed and quickly arranged a meeting with the pair at the Chabad.
The meeting didn’t go according to plan. The rabbi didn’t speak English, and Macklowe spoke barely a word of Yiddish or Hebrew. Clarke describes the scene in detail: “The three men sat there in a circle holding hands as Macklowe made his case to the rabbi, who looked distinctly older than his thirtysomething years. The men were surrounded by a crowded room full of men wearing dark robes and black hats.”
What happened next is well documented in Clarke’s book, but it’s just one example of the fascinating world of real estate development in New York City.
FAQs
What is Billionaire’s Row about?
Billionaire’s Row: Tycoons, High Rollers and the Epic Race to Build the World’s Most Exclusive Skyscrapers is a book by Katherine Clarke that provides an insider’s perspective on the world of real estate development in New York City.
Who is Jacob Arabo?
Jacob Arabo is a famous jeweler, known as Jacob the Jeweler. He has made a name for himself providing diamond-encrusted baubles to celebrities and sports stars. His client list includes everyone from Mariah Carey, Madonna, and Sean “Diddy” Combs to athletes like David Beckham, Derek Jeter, and Shaquille O’Neal.
Who is Rabbi Yoshiyahu Pinto?
Rabbi Yoshiyahu Pinto is a celebrity rabbi who is known for his business advice as well as his spiritual guidance. His followers seek him out to bless deals, dispense advice, and even curse their enemies.
What happened at the meeting at the Chabad?
At the meeting, real estate developer Harry Macklowe tried to persuade Jacob Arabo to stick to their original deal to purchase a townhouse adjacent to the Drake Hotel on East 57th Street. However, the townhouse’s owner, Arabo, had upped his price to $100 million, following advice from his celebrity rabbi, Rabbi Yoshiyahu Pinto. Macklowe was incensed and arranged a meeting with the pair at the Chabad to set the record straight.
What is Macklowe known for?
Harry Macklowe is a real estate developer known for his ambitious projects in New York City, including the Macklowe Gallery on Park Avenue. He is also a noted art collector and philanthropist.
Harry Macklowe’s grand real estate schemes foiled by Jacob the Jeweler
Real estate drama in New York City is often larger than life, with players such as real estate developer Jacob the Jeweler and his celebrity rabbi standing in the way of developer Harry Macklowe’s plans for his new Park Avenue tower. Wall Street Journal staff reporter Katherine Clarke details the event in an excerpt from her new book, “Billionaire’s Row: Tycoons, High Rollers and the Epic Race to Build the World’s Most Exclusive Skyscrapers” (Currency, out now). Macklowe found himself in the back room of the ultra-Orthodox Chabad meeting house, surrounded by men wearing dark robes and black hats, and sitting in front of Rabbi Yoshiyahu Pinto, a renowned mystic. While the rabbi was known for his spiritual guidance, he was also considered as much a business adviser by his followers, including celebrities such as LeBron James and businessmen like Jay Schottenstein and Charles Kushner. Macklowe sought a business deal with one of Pinto’s devotees, Jacob the Jeweler, to purchase a townhouse adjacent to the Drake Hotel on East 57th Street, as part of his plan to assemble a dramatic wall of retail at the base of his new tower. However, their agreement was falling apart, and Jacob Arabo, as he is formally known, was looking for a higher price of $100m, claiming his rabbi had advised him to charge that much. Macklowe, incensed, set up a meeting with Arabo and Pinto at the Chabad, but the trio failed to communicate as the rabbi only spoke Yiddish or Hebrew, while Macklowe spoke barely a word of those languages. Despite trying to make his case, Macklowe left the meeting empty-handed.