The Real Deal New York

PMG accused of mold problems at tony UES condo building

In lawsuit, owners of units at 823 Park claim developer neglected their complaints

May 06, 2015 03:25PM

823 Park Avenue

Elliot Joseph (inset) and 823 Park Avenue on the Upper East Side

Kevin Maloney’s Property Markets Group is facing a lawsuit from residents at 823 Park Avenue who claim faulty insulation at the Upper East Side building has resulted in mold growth throughout the property.

Condo owners at the luxury building, located between East 75th and East 76th Streets, are seeking a minimum of $2.5 million in damages, according to a complaint filed Monday in New York State Supreme Court.

They claim Property Markets Group, which converted the building from rentals in 2005, has been aware of the spread of mold at the condo and not addressed the issue despite owner complaints, the New York Daily News reports.

The suit also alleges firm principal Elliot Joseph told the owners he was planning to address the mold issue in order to avoid a lawsuit, despite having “no intention of doing so.”

Units at 823 Park Avenue commanded high prices during the previous real estate boom, with former hockey player Brendan Shanahan acquiring a penthouse at the building for $13.4 million in 2007 and selling it for $30.5 million one year later. [NYDN]Rey Mashayekhi