NY Archdiocese to sell $490M Manhattan property to fund sex abuse settlements

The Archdiocese of New York will sell the land beneath the luxury Lotte New York Palace hotel to the hotel’s owner for a colossal $490 million — to fund a settlement with survivors of church sex abuse.

News of this deal came mere days after the Archdiocese agreed to negotiate a global settlement to compensate roughly 1,300 people who have accused priests and staff lay members of child sex abuse — adding it would raise $300 million to cover the costs.

A representative for the hotel, at 455 Madison Ave., did not immediately respond to The Post’s request for comment. The land is among the most valuable pieces of the Archdiocese’s property portfolio.

A portion of this land sale will go to the fund, whereas the remainder would be destined to pay loans taken out for previous settlements. Another $100 million would come from the 2024-announced sale of the former archdiocesan headquarters at 1011 First Ave. That property, at 56th Street on the far East Side, will give way to residences.

Selling real estate — with other assets including land in upstate New York — is just a portion of raising the funds. The Archdiocese will also lay off staff and reduce its operating budget by 10%.

“As we have repeatedly acknowledged, the sexual abuse of minors long ago has brought shame upon our Church,” Cardinal Timothy Dolan wrote in a public letter released last Monday. “I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to provide for the safety of our young people.”