The Cracks in a $90M Penthouse

Even in New York’s most prestigious buildings, construction flaws can undermine value. A recent lawsuit alleges nearly 1,900 facade cracks were concealed during sales at 432 Park Avenue, with claims totaling $165 million.

This isn’t just a one-off. 432 Park Avenue, an architectural icon designed by Rafael Viñoly, has faced ongoing complaints since its opening. Despite penthouses asking up to $90 million, residents have reported elevator outages, plumbing issues, and noise from building sway. In 2021, the condo board filed suit citing over 1,500 construction and design defects.

432 Park is not alone. Several notable buildings developed in the past 10 years have had issues:

• Hero (Long Island City): Bursting sprinkler pipes led to unit flooding, pointing to quality control lapses during construction.

• 161 Maiden Lane, The Leaning Tower (Seaport): This 60-story building developed a noticeable tilt, the result of foundation issues. The building is incomplete. 

• Gramercy Square (Gramercy): A four-building complex marketed as a wellness-focused oasis has faced reports of cracked glass, water intrusion, and mechanical failures. In early 2025, the board filed a $75 million suit against developers Clipper Equity and Chetrit Group.

• 160 Imlay Street (Red Hook): A warehouse-to-condo conversion celebrated for its industrial aesthetic was later criticized for construction shortcuts, facade issues, and incomplete systems. A $60 million lawsuit was filed in late 2024 by the condo board.

These buildings span boroughs, price points, and styles—but the underlying theme is consistent: construction risk is not limited to lower-end or rushed projects.

What Buyers Can Do: A Smarter Due Diligence Process

Multimillion-dollar homes should come with peace of mind. Buyers - especially in new or recently converted buildings - should take a multi-pronged approach to reduce risk:

• Review the Offering Plan and Building History: Understand how the building was put together, including who developed, designed, and constructed it. Review amendments and special risks sections.

• Hire an Experienced Home Inspector: Even in new construction, an inspector can flag workmanship issues or signs of deferred maintenance.

• Research Developer Reputation: Past lawsuits, missed deadlines, or repeated quality complaints are all relevant.

• Engage a Real Estate Attorney Early: A good attorney will not just review contracts - they can flag long-term risks in the offering plan and help structure your contract accordingly.

• Speak With Current Owners (if possible): Conversations with residents or condo board members can offer unfiltered insight into how the building operates and what issues may exist.

Looking for Expert Guidance?

The high-end condo market in New York offers incredible living experiences - but it also demands a thoughtful, informed buying process. Buildings like 432 Park Avenue remind us that prestige and price don't always guarantee long-term quality. With thorough due diligence and the right team of professionals, buyers can better protect themselves in an increasingly complex market.

As a real estate broker of 12 years having helped buyers navigate the complexities of New York City’s market, I offer hands-on support from initial search through closing. If you're considering a purchase in a new development or converted building, I’d be happy to help you evaluate options and reduce risk. Feel free to reach out for a conversation.

Best,

Corey Cohen

Founder of The Roebling Group