The Real Deal New York

BK Heights condo board sues Magic Johnson’s firm over alleged building defects

Suit claims developer ignored problems at 20 Henry Street
By Konrad Putzier | March 25, 2016 05:21PM

Magic Johnson 20 Henry

From left: Earvin Johnson and 20 Henry Street

The condominium board at 20 Henry Street is suing Magic Johnson’s development firm Canyon Johnson Urban Funds and its joint-venture partners for alleged defects at the building.

The board’s complaint, filed with the New York State Supreme Court Monday, also claims that Canyon Johnson made “false and deceptive” statements in the offering plan to attract buyers.

The condo owners at the 39-unit, six-story conversion of the former Peak Mason Mints Candy Factory seek $2 million in damages. A spokesperson for California-based Canyon Johnson could not immediately be reached for comment.

“Buildings have experienced material, systemic problems of foundation and facade cracking, water intrusion, fire-safety/life-safety issues and other serious problems,” the complaint reads. The board said the other alleged defects include drafty windows, puddles on the roof and stucco chunks from the north wall that fell on the sidewalk below.

The suit claims that Canyon Johnson failed to fix the problems despite being made aware of them.

Canyon Johnson, which owns $4 billion in real estate across the country, took control of the project in 2010 after the original developers defaulted on their debt. Units in the building, originally constructed in 1885, average $1.4 million.

In 2012, Canyon Johnson sued the project’s contractor Hudson Meridian Construction, alleging delays and inflated charges.