Visible cracks on the facade of 432 Park Avenue highlight the ongoing structural issues affecting residents.
Apartment owners at 432 Park Avenue have filed a lawsuit against CIM Group, citing severe structural defects and fraud. The lawsuit claims the developers concealed major issues, including thousands of cracks and water leaks, leading to a demand for over $165 million in damages. The case also involves various engineering firms and highlights ongoing concerns regarding the building’s facade integrity, as well as the impact on property values and resident living conditions.
New York – Apartment owners at 432 Park Avenue have filed a lawsuit against the developers of the skyscraper, CIM Group, alleging “far-reaching fraud” due to significant structural defects that have plagued the building since its completion in 2015.
The lawsuit, which was filed in late April 2024 in state court, accuses the developers of concealing serious issues with the building’s facade, including “thousands” of severe cracks. Condo owners are seeking damages in excess of $165 million to compensate for losses in property value caused by the alleged defects.
Standing at 1,396 feet, 432 Park Avenue is one of the tallest residential towers in the United States and is well-known for its slim profile along Manhattan’s Billionaire’s Row. However, the building, characterized by its height-to-width ratio of 15:1, has been marred by numerous construction problems since residents began moving in.
The lawsuit also targets several architecture and engineering firms involved in the project, including SLCE Architects and McGraw Hudson Construction Corp. Among the issues cited, owners have reported over 20 water leaks since 2017, along with malfunctioning elevators, energy inefficiencies, and a noisy trash chute.
The most recent allegations highlight severe deterioration of the facade, which is described as “plagued with thousands of severe cracks, spalling, and other forms of deterioration.” Notably, a significant crack measuring 10 inches deep has been identified. The plaintiffs contend that the damage caused by these issues has resulted in flooding and corrosion of steel within the building’s reinforced concrete columns.
Condo owners claim that the developers intentionally misled city inspectors and potential buyers about the state of the building, particularly regarding the ability of the facade to prevent water penetration. The lawsuit alleges that SLCE Architects made materially false claims in their offering document related to the facade’s construction and overall integrity.
Concerns regarding the facade’s structural soundness have been compounded by reports that the usage of “experimental” white concrete was inadequate for supporting the building’s weight. The developers are accused of disregarding multiple warnings from consultants and the project’s late architect, Rafael Viñoly, regarding the concrete’s insufficient strength for the building’s design.
According to the lawsuit, recommendations for proper treatment of the facade were allegedly rejected in favor of maintaining visual appeal for prospective high-value buyers. The condo board claims that deceptive wording changes in the offering plan minimized the risks associated with the facade defects.
This is not the first legal action concerning the building; the initial complaint filed in 2021 identified over 1,500 defects in the common areas alone. Residents have noted persistent water infiltration and visible damage, including significant cracks in drywall throughout their apartments.
The structural issues have reportedly caused so much noise and vibration that some residents have been forced to vacate their units for extended periods. Despite the ongoing legal challenges and structural defects, some owners express their desire to continue living in the building, although the overall sales activity appears to be negatively impacted.
Real estate professionals have remarked on a noticeable drop in prices and sales activity related to units in 432 Park Avenue, attributing the decline to the ongoing lawsuits and widespread allegations of structural defects. Owners now face an uncertain market as they navigate the implications of this legal battle and the future of their homes.
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