R
esidents at a troubled Red Hook condo are suing the developer, Est4te Four Capital, over alleged construction defects and misappropriation of funds. The board of managers at 160 Imlay Street filed a lawsuit against the developer, its representatives, and the project's lender, Churchill Real Estate Holdings, accusing them of breach of contract, unjust enrichment, and fraud.

    The complaint alleges that life in the condo falls far short of what was promised, with shoddy construction work including leaks, falling debris, unfinished elevators, and defective toilets. The board also accuses the defendants of lying to the attorney general and redirecting residents' common charges to finish construction work.

    Est4te Four bought the former New York Dock Company warehouse for $25 million in 2012 and secured a $74 million inventory loan from Churchill in 2020. Despite selling out, the building still lacks a permanent certificate of occupancy due to ongoing construction issues. The board claims that the developer has yet to finish the elevators, did not install security on the front door, and sold duplicate parking spots.

    The lawsuit seeks approximately $60 million in compensatory and punitive damages. This is not the first time Est4te Four has faced allegations of construction defects; they acknowledged similar issues in a previous lawsuit with the project's general contractor. The condo's current board of managers took over from the sponsor in December 2023, discovering that the sponsor's representatives had failed to pay some bills, including a $75,000 water bill.