995 Fifth board files $5M suit vs. Extell, Westbrook

TRD New York /
Jan.January 15, 2014 04:10 PM

The board at 995 Fifth Avenue filed a $5 million suit against Extell Development and Westbrook Partners, alleging breach of contract and fraud in the construction, marketing and sale of apartments at the luxury co-op building.

The building, the former Stanhope Hotel across from the Metropolitan Museum of Art, is widely considered one of the top co-op buildings in New York. The suit, filed in Manhattan Supreme Court by 995 Fifth Avenue Owners Corp. on Jan. 9, also alleges fraud and misrepresentation on the part of architect Centra/Ruddy in the design of the property and Corcoran Group in the sale of units at the building.

“I expect we are going to be able to amicably settle this matter with the Extell entity,” said Wolf Haldenstein attorney Jeffrey Reich, representing the board.

An Extell representative, however, said the complaint is without merit.

“Westbrook sold their interest in the property in 2007,” a spokesman for the firm. “They expect to be indemnified by the current ownership, should they get served.”

It’s not the first lawsuit alleging that the building had construction issues.

Joseph Plumeri, then CEO of Willis Holdings, filed suit in 2012 claiming Extell refused to reimburse most of his costs related to defective waterproofing, firestopping and soundproofing at the building. Plumeri demanded $3 million in reimbursements, plus $9 million in punitive damages.

Plumeri acquired the 8,000 square foot apartment on the 15th case after four months of litigation.

He later listed the apartment for $32 million.


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

Extell lands $690M refinancing package for One Manhattan Square
The Hotel Indigo Lower East Side at 171 Ludlow Street and Rotem Rosen (Credit: Hotel Indigo)

Tallying crisis’ toll on MRR Development’s Hotel Indigo

Tallying crisis’ toll on MRR Development’s Hotel Indigo
Selina CEO Rafael Museri (Credit: The Vollman Group)

Selina CEO says $60M in funding will get startup through crisis

Selina CEO says $60M in funding will get startup through crisis
Clockwise from top left: 180 Ashland Place. 180 East 125th Street, 35 Commercial Street and 2440 Fulton Street (Credit: Google Maps)

The top 10 biggest real estate projects coming to NYC

The top 10 biggest real estate projects coming to NYC
Rotem Rosen with the Hotel Indigo Lower East Side at 171 Ludlow Street, and Alex Sapir with the NoMo Soho hotel at 9 Crosby Street (Credit: Google Maps)

Sapir gets PPP loan for NYC hotel; Rotem Rosen to return his

Sapir gets PPP loan for NYC hotel; Rotem Rosen to return his
Clockwise from top left: John Tolbert, Philip Goldfarb, Dev Motwani, José Cil and Ken Stiles

Developers, resort owners push for Florida reopening plan

Developers, resort owners push for Florida reopening plan
Courtyard by Marriott Boston Downtown. Homewood Suites Chicago and Sheraton San Jose Hotel (Credit: Google Maps)

Hotel CMBS loans worth $2B fall into special servicing

Hotel CMBS loans worth $2B fall into special servicing
The Hotel Indigo Lower East Side at 171 Ludlow Street and Rotem Rosen (Credit: Google Maps)

Rotem Rosen lands SBA loan on Hotel Indigo to keep lights on

Rotem Rosen lands SBA loan on Hotel Indigo to keep lights on
arrow_forward_ios

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

Loading...