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

Alleges construction defects at 40 Broad St. building

TRD 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
From left: Jared Epstein, Barry Sternlicht, Bobby Cayre and Ziel Feldman

Power lunch: Barry Sternlicht, Ziel Feldman and Aurora execs talk shop at Pastis

From left: Jared Epstein, Barry Sternlicht, Bobby Cayre and Ziel Feldman

Power lunch: Barry Sternlicht, Ziel Feldman and Aurora execs talk shop at Pastis

From left: The Chrysler Building, Beny Steinmetz, and 76 Eleventh Avenue (Credit: Unsplash, Getty Images, and The XI)

Beny Steinmetz, reported backer of Chrysler Building owner and HFZ, to be tried in Guinean bribery scandal

From left: Graeme Hart, The XI and HFZ Capital Group's Ziel Feldman (Credit: Getty Images)

New Zealand’s richest man buys condo at Ziel Feldman’s the XI

But at the Belnord: Why HFZ’s UWS project is offering a rosier view of the market

But at the Belnord: Why HFZ’s UWS project is offering a rosier view of the market

HFZ vs. the market: Will Ziel Feldman make money or get burned on one of his most high-stakes projects to date? 

HFZ vs. the market: Will Ziel Feldman make money or get burned on one of his most high-stakes projects to date? 

Editor’s note: The great whiplash

Editor’s note: The great whiplash

The Real Deal’s March issue is now available to all subscribers

The Real Deal’s March issue is now available to all subscribers

arrow_forward_ios