Tribeca Mews developers back in court over missing C of O

TRD New York /
Oct.October 03, 2013 12:40 PM

Father and son developers Brad and Harold Thurman are facing a $6 million lawsuit from the Tribeca Mews condominium board for allegedly failing to obtain a permanent certificate of occupancy at the project because of a slew of construction defects.

Tribeca Space Managers, the board at the 87-unit building at 25 Murray Street, claims that the condos are riddled with problems, from leaks in the roof and electrical room to the lack of a fire alarm system that complies with building codes, according to the lawsuit filed Sept. 23 in New York State Supreme Court.

Although the first closings took place in 2009, the Thurmans have failed to get the Department of Buildings to sign off on the occupancy certificate, and a temporary certificate was set to expire two years after the first closing, according to the suit.

The board has also accused the developers of inking a sweetheart deal for seven of the final ten units, including three penthouses. The sponsor sold the units to an alleged affiliate, called 25 MyRentCo, in 2011 for zero dollars, according to court and city Department of Finance records.

The three remaining sponsor-owned units were then sold to outside buyers, with at least some of the proceeds distributed to the developers, the suit claims.

The Thurmans were not immediately available for comment.

Tribeca Mews buyers have complained in the past about problems at the development, including to former New York Attorney General Andrew Cuomo, who in 2008 ordered the developers to offer to rescind buyers’ contracts, as The Real Deal previously reported.

A spokesperson for current AG Eric Schneiderman said the office did not immediately have access to records dating back that far.

In a 2008 lawsuit, three buyers — including Lisa Silverstein, a senior vice president at Silverstein Properties and the daughter of World Trade Center developer Larry Silverstein — claimed the Thurmans had purposely delayed closings in order to break contracts and resell the units at higher prices. At the time, lawyers for the developers denied the claims to The Real Deal.

In the latest suit, the condo board alleged the defendants committed breach of contract and fraudulent conveyance, and accused Brad Thurman of breach of fiduciary duty.

Along with the $6 million in damages, the board is seeking a court order compelling the developers to fix the defects, install the fire alarms, secure a permanent certificate of occupancy and name a receiver for the seven units.

James Schwartz, attorney for the board, said there was no court hearing date set for the injunction request, but otherwise declined to comment. Department of Buildings officials were checking on the status of the certificate of occupancy, and were not immediately available.

The Tribeca Mews litigation echoes an August suit filed by the condo board of 96 Rockwell Place in Fort Greene. The board claimed that developer Joshua Landau completed the 37-unit condo conversion in 2009, but has failed to get a permanent certificate of occupancy. The temporary certificate expired in July.

Landau, in a Sept. 13 sworn affidavit, claimed that the certificates could not be renewed because the board had illegal work done on the building’s plumbing systems. He said that he had since obtained a temporary certificate that is valid through Oct. 6. The parties have agreed to extend the time for Landau to file an answer to the complaint until Oct. 4.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
The co-living industry has thousands of units in the pipeline. Industry leaders are predicting a tough year ahead (Pixabay)

Co-living execs offer glimpse at occupancy rates

Co-living execs offer glimpse at occupancy rates
(Getty)

J.C. Penney implosion hits two New York City malls

J.C. Penney implosion hits two New York City malls
RuthAnne Visnauskas, Commissioner of the New York State Division of Housing and Community Renewal

New Yorkers flood rental assistance program on first day

New Yorkers flood rental assistance program on first day
The 2.98 percent is the lowest Freddie Mac has seen in nearly 50 years of tracking (iStock)

30-year mortgage rate hits record low

30-year mortgage rate hits record low
Joseph Nakash, Aby Rosen and W South Beach (Getty, Google Maps)

Aby Rosen’s RFR, Nakash family battle over failed sale of W South Beach condos

Aby Rosen’s RFR, Nakash family battle over failed sale of W South Beach condos
arrow_forward_ios

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

Loading...