Salander to Sell Town House

NEW YORK—Lawrence Salander, the beleaguered New York art dealer who has filed for bankruptcy after dozens of lawsuits were brought against him and his gallery, wants to sell his six-story, eight-bedroom Upper East Side town house, reports Bloomberg.

Lawrence and Julie Salander plan to ask for $25 million for the 1898 home, for which they paid $4.75 million in 2004. Since then they have gutted the house and ordered about $2.8 million worth of construction, including the restoration of original moldings and details, installation of a two-story stained-glass window, and outfitting of the ground floor with green and red marble imported from Central America.

The couple filed a motion on Jan. 10 indicating their intention to hire Leslie J. Garfield & Co., which specializes in town-house sales, to handle the sale. U.S. Bankruptcy Judge Cecelia Morris must approve the hiring.

Salander and his Salander-O'Reilly Galleries have been accused of reneging on millions of dollars of debts, selling artworks he did not own, and failing to deliver proceeds. Salander and his wife owe about $17 million to First Republic Bank, secured by the home, according to their bankruptcy filing. The dealer also personally guaranteed about $40 million of the gallery's debt to First Republic. Salander said in court papers that he has a "significant" art collection he can sell to pay off his debts, but officials from the gallery argue that a portion of those actually belong to the gallery and should be reclaimed. The Salanders have countered that the works are theirs.

The Salanders intend to live in their second home, in Millbrook, N.Y., after the town house sells.