Thor Equities sued developer Sydell Group and contractor Magnetic Builders Group for $2 million, alleging that construction at a Williamsburg hotel site caused structural damage to a neighboring retail property Thor owns.
According to a complaint filed with New York’s Supreme Court Thursday, Thor discovered cracks and other damage to its retail property at 93 North 9th Street in January 2016. It blames construction work on a neighboring hotel development, at 93-97 Wythe Avenue, and accuses the contractor and developer of ignoring a stop-work order issued by the Department of Buildings.
Thor claims that it lost $2 million in rent payments due to the damage, and seeks that amount plus attorney fees.
In 2013, Sydell sold the site to London-based Ennismore Capital, which will run a Hoxton Hotel there. But the suit indicates that Sydell still carries some responsibility for the construction work.
A spokesperson for Sydell declined to comment. A spokesperson for Thor noted: “This is a matter for the insurance company, but in terms of the project we are very excited about The Hoxton hotel that will be open next door to us, and know the hoteliers as fine people.”
Ennismore is not named as a party to the lawsuit.
Thor bought the single-story, 12,000-square-foot retail property at 93 North 9th Street in 2015 for $9 million.