R
esidents of 432 Park Ave., one of Manhattan's most expensive addresses, are accusing its developers of orchestrating a massive fraud by concealing thousands of defects in the building. The condo board claims that CIM Group and Macklowe Properties knowingly built a structure with flaws that compromise safety and have been covering it up for nearly a decade.

    The latest lawsuit, filed in April 2025, centers on the building's signature white concrete façade, which doubles as a load-bearing structure. Developers allegedly ignored internal warnings, failed tests, and mounting evidence of structural deficiencies to forge ahead with construction. The suit claims that cracks appeared in nearly every mock-up and persisted throughout the construction phase, with over 1,800 identified by 2016.

    Problems ranged from surface blemishes to "large voids, spalls of unknown origin, unfilled cracks, opened cracks and other serious deficiencies." Despite bringing in four separate consultants, residents say developers chose cheaper or cosmetic fixes over meaningful repairs. The board alleges that the developers made fraudulent misrepresentations in filings to the Department of Buildings and state regulators, downplaying or concealing the extent of the damage.

    Residents claim life in the building has been plagued by issues such as creaking walls, corroding steel, cracked drywall, and failing infrastructure. Ongoing floods, water infiltration, malfunctioning elevators, loud noises from trash chutes, and severe vibration issues have made living conditions unbearable for some residents. The board is seeking at least $165 million in damages, citing repair costs, diminished resale value, and reputational harm.

    Developers CIM Group and Macklowe Properties deny the allegations, with a spokesperson for CIM Group saying the firm "vehemently" denies the claims and plans to seek dismissal. Despite the lawsuits, some real estate agents claim the legal turmoil hasn't yet noticeably impacted listing interest. The building's reputation as a pinnacle of vertical luxury has been tarnished by the allegations, but its value remains uncertain.