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New York

Contractor accuses Alchemy Properties of trying to damage reputation

Lawsuit claims Woolworth condo developer failed to pay, then retaliated for mechanic’s lien

Alchemy Properties President Kenneth Horn and the Woolworth Building (Getty)
Alchemy Properties President Kenneth Horn and the Woolworth Building (Getty)

A contractor who worked on converting office space to luxury condos at the Woolworth Building has accused the developer of failing to pay its bills and threatening to damage the contractor’s reputation, Crain’s reported.

Alchemy Properties bought the top 30 floors of the building at 233 Broadway from Witkoff Group and Cammeby’s International in 2012, and made plans to convert the space into 32 high-end units.

Alchemy hired CNY Construction in 2016 to carry out the work, according to Crain’s.

In a lawsuit filed Tuesday in Manhattan’s state Supreme Court, the contractor claimed the developer failed to pay a bill of more than $1 million, which prompted CNY to file a mechanic’s lien late last year.

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The developer then allegedly threatened to contact CNY’s other clients and speak disparagingly about its work if CNY did not abandon the lien, Crain’s reports.

The suit claims the developer did in fact call a prospective client of CNY, which cost them business.

Alchemy did not respond to Crain’s requests for comment.

[Crain’s] — Sylvia Varnham O’Regan

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Luxury Real Estate