A
n investor is suing Fortis Property Group over allegations that the developer misled them about the value of assets at Olympia Dumbo, a luxury residential project in Brooklyn. The lawsuit claims that Fortis misrepresented the prospective sale prices of a commercial garage and community center attached to the condo, using false projections to attract investors. The investor, an LLC tied to the Hakimian Organization, also accuses Fortis of "gross mismanagement," alleging that the developer defaulted on its mortgage and allowed condo units to fall into disrepair.

    According to the complaint, Fortis executives falsely claimed that the project was thriving when in reality it was struggling. The investor claims that former CEO Jonathan Landau and president Joel Kestenbaum confirmed a valuation of $122 million for the center and garage in 2019, but later sold the space for just $26 million. When confronted about the discrepancy, Fortis' chief operating officer acknowledged that the original value presented was "problematic and unrealistic."

    The lawsuit also alleges that Fortis withheld critical financial information from investors, including a default on its $284 million loan from G4 Capital in November 2023. The investor claims that Fortis only notified them about the default in an email last May.

    Fortis has denied the allegations, calling the complaint "pathetic" and the accusations "baseless and false." However, the lawsuit seeks $11 million in damages and alleges that the developer drained $10 million from the project through trumped-up development and management fees. The investor claims that condo units were unfinished, uninhabitable, and filthy when they toured the building last January.

    The lawsuit adds to Fortis' growing list of legal woes, which have previously focused on its infamous leaning tower in the Financial District. Olympia Dumbo was once seen as a bright spot in the developer's portfolio, but it has struggled to sell units, with just half of its 76 units sold and its pinnacle penthouse still on the market for $19.5 million.