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

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
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Thompson Austin at 506 San Jacinto Boulevard, Austin, Texas (Hyatt)
Don’t call it a comeback: Austin hotels rebound but building never slowed
Don’t call it a comeback: Austin hotels rebound but building never slowed
Michael Medzigian, chairman and managing partner, Watermark Capital Partners (Watermark Capital Partners, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Ben Hakimian, founder, Hakimian Organization; 244 West 49th Street (Google Maps, KSU)
Hakimian changes Midtown hotel plans to residential
Hakimian changes Midtown hotel plans to residential
Extell plans Theater District hotel, avoiding special permit
Extell plans Theater District hotel, avoiding special permit
Extell plans Theater District hotel, avoiding special permit
From left: 200 Amsterdam, Extell's Gary Barnett with Central Park Tower and 130 William Street 
These buildings were the best-selling new developments of 2021
These buildings were the best-selling new developments of 2021
Ben Hakimian and Naveen Shah of Navika Capital Group (Navika Group of Companies, LoopNet, iStock, KSU)
Hakimian sells hotel at 75 Wall Street
Hakimian sells hotel at 75 Wall Street
arrow_forward_ios

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

Loading...