High-Rise Residents Seek 165 Million Dollars Over Building Faults in Luxury Development - High-rise luxury building plagued with construction flaws seeks $165 million compensation from residents.
In New York City, a dispute over construction defects has surfaced at the 432 Park Avenue skyscraper, a prestigious high-rise located in the city's Billionaires' Row. The luxury condominium, which houses 104 apartments over 85 floors and is one of the tallest residential buildings globally, is now embroiled in two significant lawsuits filed by the condo board against the developers, CIM Group and Macklowe Properties.
The first lawsuit, filed in 2021, identified more than 1,500 construction and design flaws in the common elements of the building. In April 2025, a second lawsuit was filed, alleging that the developers knowingly concealed widespread cracking in the building's facade, a measure conducted to avoid delays and maximize profits. As reported by CNN, the owners have sought $165 million in damages, accusing the developers of deliberately misleading the apartment buyers with false statements in the sales prospectus.
According to the lawsuit, thousands of serious cracks in the facade have led to flooding and corrosion in the steel concrete columns, causing substantial damage to the building. Among the ongoing issues, residents have reported visible cracks in drywall, malfunctioning sliding doors, excessive fog and window condensation, and unsettling whistling sounds during high winds, raising concerns about the building's structural integrity.
This is not the first time that the building's developers have been taken to court over construction defects. In 2021, residents filed a $250 million lawsuit, citing numerous malfunctions and breakdowns in the building, including faulty elevators, an electrical explosion, a loud trash chute, unexplained noises, and concerning vibrations, as previously reported by the BBC. In the renewed lawsuit, the owners' association accuses the real estate company of knowing and concealing the defects.
Located just three blocks from Central Park, the 426-meter-tall skyscraper, completed in 2015, has dominated the Midtown Manhattan skyline since its construction between 2012 and 2015. It includes unique architectural features such as uninhabited floors without windows, through which the wind can whistle. The legal proceedings are ongoing, with CIM Group and other defendants yet to respond fully to the most recent allegations, positioning the case as a significant test of liability and responsibility in high-profile construction projects.
- The community policy within the 432 Park Avenue skyscraper, particularly regarding handling construction defects and addressing resident concerns, appears to be under scrutiny, following the emergence of numerous lawsuits.
- Residents of the 432 Park Avenue skyscraper, who have experienced various issues such as construction flaws, widespread cracking in the facade, and faulty elevators, have taken their grievances to the courts, accusing the developers of financial misconduct and concealing defects, thereby questioning the employment policy and investing decisions made by the real-estate companies involved in the project.
