The Real Deal New York

Now, co-op board is suing over water leaks at the Majestic

Suit alleging negligence by contractor could have impact on other litigation

March 28, 2014 10:40AM
By David Jones

115-cpw

115 Central Park West (Credit: CityRealty)

The co-op board of the Majestic, the iconic 29 story co-op building at 115 Central Park West, has filed a $4 million lawsuit against two contractors alleging they committed negligence and breach of contract during the repair and restoration of the building’s façade.

Nova Restoration of NY Inc., a Brooklyn-based contractor, and Walter B. Melvin Architects, of Manhattan, were named as defendants in the case following several years of alleged water leaks and damage to apartments and other locations inside the building. This is not the first suit filed against Nova for its work on the Majestic. In 2010, Great Northern Insurance filed a claim alleging damage to an apartment after Nova supervised the waterproofing and rebuilding of the parapet wall at the building. And in 2012, Pacific Indemnity Co. sued the contractor and the condo board on behalf of a shareholder whose apartment allegedly suffered water leaks during work that took place in 2009. That case was ended under a stipulation agreement.

The property, home to some of the city’s top names in the entertainment and business world, has seen price cuts at several listings that were recently placed on the market.

Susan Weber Soros, the ex-wife of billionaire George Soros, has relisted her 19th floor, 6,000 square-foot apartment on several occasions. After buying the unit — once owned by hotelier Ian Schrager — for $25 million in 2006, she spent about $5 million to upgrade the space and place the unit on the market for $50 million in 2012.

She slashed the price to $45 million in July 2013, then cut it to $39 million in September and $35 million in February, switching brokers from Halsted to Town Residential in the process.

According to Streeteasy.com, the asking price for the five-bedroom apartment was lowered to $32.5 million less than two weeks ago.

Broker Patty LaRocco, who joined Douglas Elliman from Town Residential earlier this year, where she previously listed the unit, said she was unaware of the litigation.

But brokers familiar with the property say that a number of potential deals at the building have fallen short because of concerns about the construction. An attorney familiar with the property, however, said that the façade issues are no longer a problem at the building.

Lawyers for the building and the insurance companies declined to comment, or were not immediately available. Andrzej Janczyk, president of Nova, declined to comment.

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