John Street condo files $3M suit against developer, alleging construction defects

Board is also asking for injunction against unit owner, a financial analyst, said to be running an illegal boarding house

New York /
Jan.January 07, 2013 12:30 PM

The board of a Financial District condominium has filed a $3 million suit against developer WSA Equities — the parent company of the Gansevoort Hotel Group — over alleged construction defects. It has also filed a separate suit against a financial analyst for allegedly renting out her unit to transient visitors in violation of the city’s multiple dwelling law.

The defects suit, filed Dec. 21 in New York State Supreme Court, alleges WSA and Corcoran Group committed breach of contract, breach of warranty and fraud in connection with the construction, sale and marketing of the South Star condominium at 80 John Street. The board of the 90-unit condominium is contending that the Stephen B. Jacobs Group, a design firm, and Ettinger Engineering Associates committed fraud and negligent misrepresentation in connection with architectural, engineering or consulting services at the property.

Sources familiar with the property said the condo is experiencing water infiltration, among other issues.

In a separate suit, the board is alleging that Sophi Grishanova, a financial analyst in New York, was pocketing payments from a short-term rooming house she is said to be running out of her apartment, which she bought in March 2011.

The board is claiming that Grishanova has refused to pay substantial fines for violating the condo’s rental policy, and has also failed to pay recent common charges at the property. The board, claiming that she has rented out her unit to visitors from out of state and as far away as Australia, is asking the court for an injunction against her.

In September the board sent notices to all residents in the building and began to impose $1,000 fines for each rental violation. Unpaid fines against Grishanova total $4,000, according to court filings. The suit comes at a time when the city has stepped up enforcement of tenants who rent out their apartments for fewer than 30 days.

Streeteasy.com shows five active sales listings for the property at an average of $775 per square foot.

WSA officials said they had not been served with any legal papers and had no comment on the allegations.

Lawyers for the board did not have any immediate comment. Jacobs was not immediately available for comment. Ettinger officials said they were not aware of the suit. A Corcoran spokesman said the company had no comment. Grishanova declined comment.


Related Articles

arrow_forward_ios
49 East 10th Street and Barbara Corcoran (Credit: Google Maps and Getty Images)
Corcoran to shut down office in building partly owned by Barbara Corcoran
Corcoran to shut down office in building partly owned by Barbara Corcoran
Corcoran President & CEO Pamela Liebman (Credit: Corcoran, Getty Images)
Welcome to Queens: Corcoran opens first borough outpost
Welcome to Queens: Corcoran opens first borough outpost
Corcoran CEO & President Pamela Liebman (Credit: iStock)
Corcoran begins new lead-gen push via Facebook ads
Corcoran begins new lead-gen push via Facebook ads
Corcoran Global Living's Michael Mahon (Corcoran, Getty)
Turmoil at Corcoran Global Living: CEO accused of fraud
Turmoil at Corcoran Global Living: CEO accused of fraud
Michael Mahon (Corcoran, Getty)
Corcoran shopping its biggest franchise
Corcoran shopping its biggest franchise
From left: Jared Barnett, Eugene Litvak, and Ryan Kaplan (HIG, Compass, Design recipes, Getty)
In home sales, cash was king. Now it’s God
In home sales, cash was king. Now it’s God
113 East 90th Street (Corcoran)
Converted firehouse aims for record single-family sale in Carnegie Hill
Converted firehouse aims for record single-family sale in Carnegie Hill
Corcoran's David Mayer and Compass' Augusto Bittencourt (Corcoran, Compass, Getty)
Foreign investors shift real estate strategies as dollar strengthens
Foreign investors shift real estate strategies as dollar strengthens
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...