CIM Group Faces Another Construction Lawsuit

The CIM Group’s alleged construction issues are following the firm to a building it didn’t even develop.

The condo board of the Astor at 235 West 75th Street is set to sue the Los Angeles-based firm for at least $10 million and demand repairs, Crain’s reported. The filing was a two-page summons, rather than a full lawsuit, leaving many details up in the air.

The board of the prewar luxury building in the Upper West Side claims there are construction and operational issues at the property. There were a handful of lawsuits filed by owners at the building before CIM took ownership in 2021 following foreclosure on the junior mezzanine position of the property (and three others).

In addition to CIM, company principal Jason Schreiber is also named as a defendant, according to the filing made in the State Supreme Court. The company did not respond to a request for comment from the publication and had not yet filed a formal response to the summons.

The notorious HFZ Capital Group acquired a four-building portfolio from Westbrook Partners in 2013 for $610 million, teaming with Fortress Investment Group on the deal. The portfolio consisted of 743 rental units, which the partners subsequently began converting into residential condos.

HFZ projected a $316 million sellout of the Astor’s roughly 100 units when sales began in 2015. As of last year, more than a dozen developer-owned units remained available, according to a CIM filing, though an $8 million unit went into contract recently.

Unfortunately for CIM, the lawsuit is a familiar refrain for the developer.

Residents at 432 Park Avenue — the pencil-thin supertall that helped define Billionaires’ Row — are filing lawsuits over alleged cracks and faults at the building, developed by CIM and Macklowe Properties.

Consultants hired by residents estimate repairs of the cracking building could exceed $160 million. The board alleges the developers sold defective units and concealed structural flaws. CIM denies wrongdoing, calling the deterioration claims “baseless” and blaming the board for poor maintenance.

— Holden Walter-Warner