Mega-rich condo owners sue after unearthing terrifying secret hidden in super-skinny luxury skyscraper on New York's Billionaire's Row

Importance Score: 78 / 100 🔴


Luxury Skyscraper Residents Sue Over Alleged Structural Flaws

Owners of condos in a prestigious New York City skyscraper, 432 Park Avenue, are taking legal action against the building’s developer and contractors. The lawsuit alleges a disregard for significant structural deficiencies in the luxury high-rise. This dispute highlights potential risks even in high-end real estate, focusing on issues that could impact other luxury condo developments. Concerns over structural flaws have prompted this legal recourse.

Initial Complaints and Discovery of Further Issues

Residents of 432 Park Avenue have previously voiced concerns regarding issues such as malfunctioning elevators, plumbing leaks, and excessive noise. These grievances led to an initial lawsuit against the developers in 2021. During the discovery phase of the original suit, the condo board reportedly found more evidence suggesting misconduct.

New Allegations of Fraud and Negligence

The condo board now asserts that CIM Group, along with other developers involved in the 1,400-foot Manhattan tower, engaged in “deliberate and far-reaching fraud.” The claim centers on the alleged failure to disclose early cracks in the building’s façade that could lead to fundamental structural problems. The lawsuit, filed in New York State Supreme Court in Manhattan, alleges the developers prioritized profits over safety, ignoring repeated warnings and failed tests indicating structural instability.

Extensive Façade Defects Uncovered

Since its completion, nearly 1,900 defects have reportedly emerged in the building’s façade.

  • These include an alleged 10-inch deep fissure in the building’s core.
  • Photos submitted as evidence depict vein-like cracks and missing concrete on the façade.

Legal Perspective

“This matter extends beyond negligence, into an alleged calculated scheme,” stated Terrence Oved, legal counsel for the condo board.

Seeking $165 Million in Damages

The lawsuit seeks $165 million in damages to compensate for the reduced value of the building and its individual units. Some wealthy residents, initially drawn to the newly constructed tower when it opened in 2015, are now reportedly departing. This exodus underscores the serious nature of the allegations and the potential financial impact on property values.

Past Issues Complicate the Situation

The opulent skyscraper generated considerable buzz in New York City real estate upon its initial sales launch in 2013. For a brief period, it held the distinction of being the tallest residential building in the Western Hemisphere. But after residents moved in, several problems were reported.

Concerns Raised Before Construction

Concrete Mix Design

The condo owners contend that the building’s troubles stem from the original plans, which specified a naturally white concrete façade. The concrete mixture needed to be robust enough to withstand the combined weight of all the floors and resist strong winds during severe storms.

Concrete Consultant’s Challenge

According to the legal filing, Andreas Tselebidis, who was responsible for designing the concrete mix, deemed it “the greatest challenge ever requested by a ready-mix producer.”

Early Warning Signs

Despite his efforts, cracks manifested in all vertical columns in every mockup test conducted over six months.

  • Star architect Rafael Vinoly also voiced concerns about the cracks as the issues persisted.

Architectural and Engineering Concerns

“It is difficult to know the impact of cracking in a fully-loaded building,” wrote Vinoly’s firm in a field report, emphasizing that “it is imperative that the concrete consultant review these conditions and advise.”

Silvian Marcus, of WSP (the building’s structural engineer), is also said to have written 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.”

Alleged Disregard for Repair Solutions

While contractors purportedly provided the developers with potential solutions to mitigate the cracking through various coatings and patching, the suit alleges that these suggestions were ignored due to concerns about “potential schedule, cost and aesthetic impacts.”

Aesthetic Prioritization

For instance, the idea of applying an opaque elastomeric covering to the façade to prevent air and water infiltration was reportedly dismissed because it would “significantly alter” the building’s appearance, making it less appealing to potential buyers.

Cosmetic Repairs

Instead, the lawsuit alleges that the developers only addressed issues with superficial or cosmetic solutions.

Reported Extensive Defects Post-Opening

In April 2016, one year after the building opened, a consultant issued a report detailing 1,893 defects, with over half classified as “life-safety items.” These included “large voids, spalls of an unknown origin, unfilled cracks, opened cracks and other serious deficiencies.” The damage allegedly corroded some of the steel in the tower’s reinforced concrete columns.

Misrepresentation to Authorities Alleged

The legal action claims that members of the development team misrepresented the “nature, extent and type of cracking” to the New York City Department of Buildings. Under New York City law, architects and engineers are obligated to notify the Buildings Department of any “immediately hazardous conditions” at properties where they are working. The department claims no notification has been made.

Revisions to Disclosure Documents

The suit further asserts that disclosures in information provided to prospective buyers and filed with the state Attorney General’s office were revised in 2013. Wording indicating the concrete’s density “will prevent water penetration” was changed to state that the concrete and properly sealed windows “have been designed to prevent water penetration.”

Developers Deny the Claims

Representatives for CIM Group and SLCE Architects have refuted the allegations, with plans to seek dismissal of the complaint signaling a protracted legal battle.


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