A New York City skyscraper once hailed as the “Empire State Building of the 21st Century” is now facing serious structural issues, including cracks and flooding, that have prompted condominium owners to file a $165 million lawsuit against developer CIM Group for what they describe as a “wide-ranging fraud.”
The owners allege that the company deliberately concealed major structural defects.
A luxury skyscraper in New York City is facing a $165 million lawsuit over severe structural cracks and flooding that have alarmed its wealthy residents
$165 Million Lawsuit Filed Against Developer
The condominium board of 432 Park Avenue, a luxury high-rise located in Manhattan’s exclusive Billionaire’s Row, has sued the building’s developers, claiming they misrepresented and concealed the extent of water damage and structural problems. The lawsuit seeks $165 million in damages.
Originally compared to the Empire State Building by real estate mogul Harry Macklowe in a 2013 interview with The New York Times, 432 Park has since been plagued by multiple construction flaws, including faulty elevators, power supply issues, and approximately 20 water leaks since 2017.
According to the suit, the most critical defect is a crack over 10 inches (25 centimeters) wide in the building’s core, which has allegedly led to flooding and damage to steel columns within the structure.
CIM Group Seeks to Dismiss Case Despite Growing Owner Concerns
The plaintiffs allege that both CIM Group and SLCE Architects conspired to hide the full extent and severity of the structural issues.
In statements to CNN, both firms denied the allegations and have filed motions to dismiss the case.
The lawsuit further claims that CIM Group ignored early concerns raised by some buyers during the planning phase, including warnings about design flaws that could compromise the building’s integrity.
A recommendation to install an opaque elastomeric coating on the façade to prevent air infiltration was also reportedly dismissed.
Apartments in 432 Park sold for several million dollars, attracting high-profile buyers such as Jennifer Lopez and Chinese businessman Ye Jianming.
