The financially troubled Upper East Side condominium,
Manhattan House, is facing a $2.5 million lawsuit from a buyer who wants to back out of
her contract amid concerns that the developer could default on its
construction loan. The buyer, Helene Kahn, is demanding that developer O’Connor Capital
Partners return her deposit, after the company refused to guarantee
that the building was solvent. The suit, filed March 20 in New York
State Supreme Court, alleges breach of contract, unjust enrichment,
breach of fiduciary duty and breach of implied warranty. Kahn, who put a 10 percent deposit down on a $1.3 million apartment at Manhattan House, at
200 East 66th Street, in March 2008, demanded that the sponsor offer
written assurances that it would complete construction and not default
on its loan with Germany’s HSH Nordbank, the senior lender for the
conversion. [more]