Residents of Troubled Supertall Tower Seek $125 Million in Damages

The condo board at the supertall tower 432 Park Avenue, one of the most expensive addresses in the world, is suing the developers for $125 million in damages, citing multiple floods, faulty elevators, “intolerable” noise caused by building sway, and an electrical explosion in June — the second in three years — that knocked out power to residents, according to a lawsuit filed Thursday.

The nearly 1,400-foot-tall tower, designed by the firm of star architect Rafael Viñoly, first came under scrutiny in February, when The Times revealed many of the claims made in the new suit.

“This case presents one of the worst examples of sponsor malfeasance in the development of a luxury condominium in the history of New York City,” referring to the developers, CIM Group and Macklowe Properties, according to the complaint filed with New York State Supreme Court. The damages include the estimated cost to repair some 1,500 construction and design defects in common elements of the building that were identified by an engineering firm hired by the condo board; it does not include potential punitive damages, or separate lawsuits that individual residents might file.

The damages could rise, said Jonathan Adelsberg, a partner at Herrick Feinstein, which is representing the condo board, which residents took over from the sponsor in 2020.

“It’s almost like peeling an onion,” he said, referring to defects that may yet be uncovered. “This is a work in progress in ascertaining what’s wrong.”

“Each and every commitment and term contained in the 432 Park Offering Plan and Declaration has been honored,” a spokesman for the sponsor, which includes CIM Group, said in a statement, adding that some of the remaining “maintenance and close-out items” have been obstructed by the condo board.

Macklowe Properties, the other developer, did not return requests for comment.

Built in 2015 with a projected sellout value of $3.1 billion, the pencil-like tower marked a pinnacle in luxury condo development in the city — much of it geared toward part-time residents and investors who hid their identities behind shell companies. Buyers have included the Saudi retail magnate Fawaz Alhokair, who purchased an $88-million apartment on the 96th floor; a member of the Beckmann family that owns the Jose Cuervo Tequila brand; and the one-time pairing of Jennifer Lopez and Alex Rodriguez, who bought a 4,000-square-foot apartment for $15.3 million in 2018, and sold about a year later.

“Far from the ultraluxury spaces that they were promised, however, Unit Owners were sold a building plagued by breakdowns and failures that have endangered and inconvenienced residents,” the complaint said.

The complaint cited defects in a number of interrelated systems in the building, many of which present “life safety” issues.

Residents have been trapped “on several occasions” for hours in stalled elevator cars, at least in part because of the building sway that occurs in towers of such immense height, the suit said.

There have been a number of floods and leaks, both on high floors and in the subbasement, which the board attributes to poor plumbing installation. Some 35 units and common areas were damaged by water, causing millions in damages, and one flood disabled two residential elevators for weeks.

Noise complaints related to the quality of construction were frequent. The suit claims that even Richard Ressler, a founder ofCIM Group and a unit owner, once said the sound and vibration issues were “intolerable,” and made it difficult to sleep during inclement weather. Another resident said the trash chute “sounds like a bomb” when garbage is tossed.

The suit said that the decision to go public was a result of the developers’ inadequate “band-aid approach” to resolving many of the issues. While attempting to patch a leak on a sub-level of the building this past June, a contractor mistakenly drilled into electrical wiring, causing an explosion “which threw the contractor backwards, several feet through the air,” knocked out the power for some residents, and shut down the air-conditioning system. The repairs cost more than $1.5 million.

The 125-unit building is nearly sold out, but since reports of defects at the building emerged in February, resales have been slow, according to Donna Olshan, the president of Olshan Realty.

There are 11 units listed for sale, she said, ranging from about $7 million for a low-floor two-bedroom up to $169 million for the penthouse. Since January, only one sale has closed.

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