Courts roundup: two condos sue sponsors, referee hired for Kushner’s Times Square retail
45 East 22nd Street (Credit - Google)
Board at Continuum’s NoMad condo alleges $9M in construction problems: The board of the Continuum Company-developed condominium at 45 East 22nd Street alleges construction issues. According to the complaint, “The Offering Plan promised purchasers a building that would be designed and constructed in compliance with all applicable laws and the terms of the plan, and that would be safe to live in. Instead, the unit owners were left with a building rife with defective conditions that in numerous respects violate applicable government regulations, compromise the quality of life of residents, and deviate from express promises and material representations in the Offering Plan.”
Court filings represent the positions of one party and are not necessarily accurate or complete.
In the past 12 months, condo boards in New York City have filed at least 16 lawsuits against sponsors making similar allegations of defective construction. Ian Bruce Eichner’s Continuum has not yet filed response papers.
$5M suit related to “imminent” deal to sell Crown Heights retail condo: The condominium board at 805 Washington Avenue in Crown Heights alleges construction problems and alleges the condo’s developer is planning to transfer a significant asset, the commercial condo, for no consideration to another group which would prevent the condo from receiving money from the asset.
According to the complaint filed in Brooklyn State Supreme Court, developer Levi Balkany has an “imminent” deal to transfer ownership of the commercial condominium unit at 805 Washington Avenue in Crown Heights to members of the Othman Group. However, the sponsor members, according to the complaint, “will retain control of the Commercial unit.” LINK
Referee selected for Kushner’s Times Square retail: A referee, Thomas Kleinberger, was selected in January 2023 to compute the total debt Kushner Companies owes at the retail condo unit at the former New York Times Building at 229 West 43rd Street. The original loan was $285 million. The special servicer representing bondholders filed to foreclose on the loan 850176/2020 in 2020.