Wednesday, January 20, 2016

Lev Leviev Forced to Complete Work on Unfinished Luxury Project 

The developer promised the prospect buyers that the building would have a certain kind of luxurious amenities in a 40-story condominium tower overlooking the New York Stock Exchange, reports The New York Times.

Designer Philippe Starck, known for his work with celebrities, was supposed to work on the interiors. Regarding the interiors, the developer allegedly stated to the buyers that they will be getting  “the most elegant indoor swimming pool you’ve ever seen,” a basketball court, a plush movie theater and a billiards area, as well as a terrace and a yoga studio.

According to the New York Times, “instead, the buyers who put down millions for their apartments at 15 Broad Street 10 years ago got an ‘abject lack of fireproofing,’ faulty wiring, numerous leaks and potentially toxic mold.”

The developer gave up all his efforts to renovate the building and provide it with the promised amenities, after having made $380 million by selling 386 apartments, asserts the state attorney general’s office.

Separate settlements were reached last week by the developer, Africa Israel Investment Ltd., and Eric T. Schneiderman, the New York attorney general, and the building’s residents after years of litigation.

Israeli businessman Lev Leviev is the owner of Africa Israel. This Uzbek-born Israeli philanthropist and investor is of Bukhari Jewish background. According to Wikipedia and Forbes Magazine, with a net worth of roughly $1.5 billion in March 2013, he has been a major philanthropist for Hasidic Jewish causes in Eastern Europe and Israel.  His diamond mining investments in Angola and his investments in Israeli settlements on the West Bank have, however, been subjected to protests.

The New York Times reports: “Under the terms of the settlements, Africa Israel must resolve the defects at 15 Broad Street and two other buildings with similar issues: 20 Pine Street, a 409-unit condominium also in the financial district, and 85 Adams Street, a 79-unit building in Downtown Brooklyn. It must also surrender control to the condominium boards and pay a $2 million penalty to New York City for improperly taking property tax breaks on the Broad Street building and an adjacent structure.”

Mr. Leviev and Mr. Boymelgreen bought 15 Broad Street and 23 Wall Street from J.P. Morgan Chase & Company in 2003 for more than $100 million. According to some of the buyers, the plans for 15 Broad Street were very attractive, but the work was left unfinished, reports The New York Times. As a result, the owners of the condominiums had to spend more than $1 million “fixing exterior leaks.” Africa Israel’s settlement with the residents also includes an undisclosed cash payment.


Comments: Post a Comment

This page is powered by Blogger. Isn't yours?

Chaptzem! Blog