Local Man Gets Bargain Of A Lifetime On Neighbor's House

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It may not be Palm Beach, but one Richard Baker still seems to have gotten a pretty sweet deal on the 18,000-square-foot, two-elevator, two-pool, seven-garage dream house of somebody else.

Richard M. Fuscone, a retired bond executive from Merrill Lynch, conceived of it as a career-topping home. Indeed, an insurance company recently valued it at $32 million. But it ended up in the hands of his neighbor, Richard A. Baker, the chief executive of the firm that owns Lord & Taylor and Saks, who snapped it up for $8 million after Mr. Fuscone had to declare bankruptcy in 2010….

Court filings show that Mr. Fuscone asked the judge in 2010 for more time to sell his home for the $15 million he thought it was worth. Russian billionaires and Middle Eastern investors, he said, could well come up with an offer soon. But he needed time — and more money.

“It has become a dire situation,” Mr. Fuscone said in a plea to the court to borrow $500,000 to meet his expenses. “The only source of liquidity is whatever my wife is able to sell in terms of personal furnishings.”

But when no buyers surfaced, Mr. Fuscone and the bank worked out an agreement whereby the house was sold to a hedge fund, which, several months later, sold it to Mr. Baker for $8 million.

The Tale of the $8 Million 'Bargain' House in Greenwich [DealBook]
Why Palm Beach, Florida Is The 'New Greenwich' For Wall Streeters [BI]

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