The owners of a luxury skyscraper on New York City's Billionaires' Row have filed a lawsuit accusing the developers of fraud after "thousands" of cracks appeared.
A spokesperson for CIM Group, one of the developers, said in an email shared with Newsweek that they vehemently deny the accusation.
432 Park Avenue is home to some of the most expensive residences in the city. The building opened in 2015 and, at that time, was the tallest residential building in the world (as of 2023, it was the third tallest). The building had a projected value of over $3 billion when it opened.
Standing 1,396 feet above Central Park, the luxury tower was once home to Jennifer Lopez and Alex Rodriguez, who purchased a three-bedroom unit in 2018 for $15.3 million, though it was sold less than a year later. A penthouse in the building in 2021 was listed for $169 million; the country's most expensive listing at the time.
The lawsuit was filed on April 4, 2025 and was brought by the Board of Managers of the 432 Park Condominium against the developers of the property including CIM Group, McGraw Hudson Construction, SLCE Architects and WSP USA. It was filed in the State Supreme Court in Manhattan and is seeking damages in exceeding $160 million.
Newsweek reached out to McGraw Hudson Construction, SLCE Architects and WSP USA Buildings outside of regular working hours via email for comment.
The filing alleges that the building's "most alarming expansive and costly construction defects," is the white concrete façade which makes up the exterior of the building. The filing alleges that "the façade is plagued with thousands of severe cracks, spalling, and other forms of deterioration."
The filing alleges that there has been "deliberate and far-reaching fraud," and that there is a "vast number of extremely significant construction defects." The filing cites a 2016 report from a concrete consultant, which identified nearly 1,900 defects in the façade.
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