Setai Wall St. board sues HFZ, Zamir Equities for $5M

Alleges construction defects at 40 Broad St. building

New York /
Jul.July 10, 2013 08:30 AM

The Setai Wall Street board is suing Zamir Equities, its principals and Ziel Feldman’s HFZ Capital for $5 million for what it contends are construction defects at the luxury condominium, the New York Post reported.

The complaint, filed yesterday in New York State Supreme Court, alleges the building at 40 Broad Street has water penetration issues and is missing design elements, such as glass railings on terraces.

HFZ, which bought the project’s discounted mortgage from now-defunct Anglo Irish Bank, became the “de facto sponsor” of the project when it took over the completion of construction and repairs, negotiated with third parties and marketed the building’s 167 units on behalf of Zamir Equities, according to court papers. Thirteen units remain unsold.

“This is not a lawsuit we charged into,” the board’s attorney, Rob Braverman, told the newspaper. “We have been trying to settle for a long time. HFZ is a player in the industry, and we are hoping they will do the right thing.”

An attorney for HFZ said he has not yet seen the lawsuit and an HFZ spokesperson said the company does not comment on litigation.

In May, a judge threw out DelShah Capital’s securities fraud lawsuit against Zamir Equities over the building, which alleged that Zamir had misrepresented the project to investors. [NYP, 2nd item]Hiten Samtani


Related Articles

arrow_forward_ios
Ziel Feldman, Ben Ashkenazy and 600 Madison Avenue. (Getty, Ruben Companies)
Ashkenazy takes over HFZ’s office at 600 Madison
Ashkenazy takes over HFZ’s office at 600 Madison
HFZ Capital Group's Ziel Feldman, a rendering of 29th&5th and Marble Collegiate Church (Getty, HFZ)
HFZ, Marble Collegiate Church lose NoMad development site
HFZ, Marble Collegiate Church lose NoMad development site
Avishai Abrahami with Ziel Feldman and Nir Meir, and 500 Bailey Ave, Buffalo, NY; 707 Spence Lane, Nashville, TN; 1100 Milwaukee Avenue, South Milwaukee, WI (Getty, Google Maps, NY Supreme Court)
Ziel Feldman, Nir Meir accused of fraud over $30M loan
Ziel Feldman, Nir Meir accused of fraud over $30M loan
HFZ founder Ziel Feldman and Nir Meir (iStock, HFZ/Illustration by Kevin Rebong for The Real Deal)
Ziel Feldman alleges Nir Meir used HFZ as “personal piggy bank”
Ziel Feldman alleges Nir Meir used HFZ as “personal piggy bank”
HFZ CEO Ziel Feldman, a rendering of 3 West 29th Street and the Marble Collegiate Church (Illustration by Kevin Rebong for The Real Deal)
Faith alone: How one Manhattan congregation got caught in HFZ’s downfall
Faith alone: How one Manhattan congregation got caught in HFZ’s downfall
HFZ's Ziel Feldman. (Getty, Shore Club)
HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel
HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel
Ziel Feldman with Fifty Third and Eighth. (The Xi, 53rd and 8th)
HFZ loses control of 4 Manhattan condo projects
HFZ loses control of 4 Manhattan condo projects
A photo illustration of the Belnord at 225 West 86th Street and HFZ CEO Ziel Feldman (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
Westbrook takes over HFZ’s Belnord conversion
Westbrook takes over HFZ’s Belnord conversion
arrow_forward_ios

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

Loading...