T
he Gramercy Square Condominiums, a four-tower project in Manhattan, has been plagued by issues since its launch in 2018. The building's board is suing the original developers, Clipper Equity's David Bistricer and Chetrit Group's Meyer Chetrit, alleging that they created defective condo units and mismanaged the condominium's assets. The complaint lists numerous problems, including widespread leaks, improperly installed boilers, and cracked window panes.

    The board claims that Bistricer and Chetrit, along with two other defendants, misappropriated up to $800,000 in condominium funds. They are seeking at least $75 million in damages, as well as to hold the developers personally liable for their actions. The board also alleges that the defects have caused significant damage, including flood damage, which has led to a substantial increase in insurance costs.

    According to the complaint, Howard L. Zimmerman Architects & Engineers found that the work done on the building did not meet industry standards and posed life safety issues. As a result of the defects, the units in the building are now unmarketable and have suffered in value. The development has sold several units, including a penthouse purchased by Grindr co-founder Joel Simkhai for $19.5 million.

    Bistricer denied the allegations, stating that he is working with the condominium to resolve any issues raised by the board. However, the board claims that Bistricer and Chetrit were notified of the problems but failed to take action. The lawsuit also highlights Chetrit's financial struggles, including a number of foreclosures in recent years.