Ultra-wealthy New York City condo owners are suing their building’s developer and its contractors for allegedly ignoring major structural issues at their luxury skyscraper.
Residents at 432 Park Avenue have long complained about alleged faulty elevators, leaking plumbing and noise issues, filing an initial suit against developers in 2021.
But while pouring over documents for that suit, the condo board said they found more evidence of wrongdoing.
They now claim that CIM Group and other developers at the 1,400-foot tall luxury tower on Manhattan’s Billionaire’s Row committed ‘deliberate and far-reaching fraud’ by failing to disclose early cracks in the façade that could cause structural issues, the New York Times reports.
The developers also allegedly ignored repeated warnings and failed tests that showed the building may not be structurally sound because they worried too much about their bottom line, according to the lawsuit filed late last month in New York State Supreme Court in Manhattan.
Nearly 1,900 defects have emerged in the façade of the building ever since – including an alleged 10-inch deep crack in the building’s core, the condo owners claim, according to CNN.
They even included photos showing vein-like cracks of concrete missing from the façade in their filing.
‘This matter extends beyond negligence, into an alleged calculated scheme,’ said Terrence Oved, a lawyer for the condo board.
It is seeking $165 million in damages, including the ‘diminution in value of the building and its value of the building and its units’ as some of its super wealthy residents who were eager to get into the new super-skinny high rise when it opened in 2015 flee the building.
Condo owners at 432 Park Avenue are suing their building’s developer and its contractors for allegedly ignoring major structural issues at their luxury skyscraper
The lavish skyscraper made waves in the Big Apple real estate world when it first opened sales in 2013, and for a short time it was the tallest residential building in the Western Hemisphere.
It attracted a number of famous faces and moguls looking to live in the status symbol, including singer Jennifer Lopez and Saudi retail and real-estate magnate Fawaz Al Hokair, who bought the penthouse in 2016 for $87.66 million.
But residents reportedly complained of a number of issues after moving in, including rumors that high-altitude apartments would sway and creak over the city below.
One potential buyer, billionaire tequila mogul Juan Beckmann Vidal, also claimed that when he was in contract for a $46.25 million apartment on the 86th floor in 2016 there was a ‘catastrophic water flood’ caused major damage to units on the 83rd, 84th, 85th, and 86th floors.
The condo owners now claim that the problems with the building originated with the plans, which called for a naturally white concrete façade.
The mixture would have to be strong enough to withstand all of the floors pressing down on one another and strong enough to hold up against strong winds during major storms.
According to the suit, Andreas Tselebidis – who designed the concrete mix – said it was ‘the greatest challenge ever requested by a ready-mix producer.’
Despite his efforts, cracks emerged in all of the vertical columns in every mock up test over the course of six months, it claims.
As the issues persisted, star architect Rafael Vinoly raised concerns about the cracks.
When it opened sales in 2013, the luxury skyscraper attracted famous residents including singer Jennifer Lopez
The new lawsuit claims that the problems with the building originated with the plans, which called for a naturally white concrete façade
‘It is difficult to know the impact of cracking in a fully-loaded building,’ his firm wrote in a field report on December 17, 2012.
‘It is imperative that the concrete consultant review these conditions and advise.’
The next day, the lawsuit claims, Silvian Marcus, of WSP – the building’s structural engineer, which is also one of the defendants in the suit – also expressed her own concerns.
She allegedly wrote to developers to ‘hold the pour’ until they had a ‘valid’ concrete mix.
Yet, the lawsuit says, the developers plowed forward with ‘complete disregard for… the inevitable problems it would cause for the building and its future residents.’
Almost immediately afterward, the condo owners claim, cracks started to emerge.
The lawsuit also claims that the concrete supplier was ‘still experimenting with design mixes’ three months after the start of the facade’s construction.
Residents reportedly complained of a number of issues after moving in, including rumors that high-altitude apartments would sway and creak over the city below
A ‘catastrophic flood’ allegedly caused major damage to units on the 83rd, 84th, 85th, and 86th floors in 2016
The suit says the developers ignored repair ideas ‘due to potential schedule, cost and aesthetic impacts’ they feared would discourage wealthy buyers
Contractors reportedly plied the developers with some ideas about how to stop the cracking with carious coats and patching.
But the suit says the developers ignored those repair ideas ‘due to potential schedule, cost and aesthetic impacts.’
For example, a suggestion that an opaque elastomeric covering could be applied to the façade to prevent air and water infiltration was ignored because it would ‘significantly alter’ the building’s appearance and make it less appealing to ‘the world’s billionaires.’
Instead, they only addressed issues with cheap or cosmetic repairs, according to the lawsuit.
By April 2016, one year after the building opened for residents, one of the consultants issued a report detailing 1,893 defects – more than half it said were ‘life-safety items,’ the suit claims.
They included ‘large voids, spalls of an unknown origin, unfilled cracks, opened cracks and other serious deficiencies.’
The damage even corroded some of the steel in the tower’s reinforced concrete columns, the suit claims.
It goes onto claim that members of the development team falsely misrepresented the ‘nature, extent and type of cracking’ to New York City’s Department of Buildings.
Under New York City law, architects and engineers are responsible for notifying the Buildings Department of any ‘immediately hazardous conditions’ at properties where they are working.
But the department has never been notified of any conditions at 432 Park Avenue, a spokesperson for the department told the New York Times.
Residents including Thomas Peterffy have fled the luxury condo building
Additionally, the suit claims that disclosures used in information for potential buyers and filed with the state Attorney General’s office was revised in 2013.
Wording that had said the density of the concrete ‘will prevent water penetration’ was changed to say the concrete and properly sealed windows ‘have been designed to prevent water penetration.
The developers, though, have denied the claims.
A spokeswoman for CIM Group, for example, told the Times it ‘vehemently’ denies the claim and is planning to move to dismiss the case.
A lawyer for SLCE Architects also denied the allegations and said it, too, plans to dismiss the complaint.