MetroLoft, the developer responsible for a Manhattan building that buckled Tuesday, is facing a lawsuit exceeding $376 million related to alleged structural defects and shortcuts. The litigation centers on the luxury condominium at 443 Greenwich Street, a building that has attracted notable residents including Rebel Wilson, Harry Styles, and Meg Ryan.
The construction defect case, initially filed with claims for $250 million, has escalated over three years to the current $376 million demand. The lawsuit, brought by the building's condo board in 2022, alleges "life-threatening" shortcuts were taken during construction. Claims include significant issues such as leaking roofs impacting penthouses and structural decay allowing decorative bricks to be pulled from courtyard walls by hand.
Further allegations detail that the building's plant-filled courtyard was constructed without a properly functioning drainage system, leading to substantial flooding. Court records have shown images of an allegedly open expansion joint and damaged masonry at the 443 Greenwich Street property. Despite MetroLoft's attempts to dismiss the case, New York State Supreme Court judges have allowed the litigation to proceed through discovery and appeals. There is no public information indicating that the alleged defects have been rectified.
In a separate matter, former residents Justin Timberlake and Jessica Biel are involved in a lawsuit concerning their former penthouse at the building. Their shell company, Menemshovitz NY Realty, filed a suit last year claiming their insurers should cover extensive damage from stormwater flooding. The couple is seeking unspecified damages, and their insurers have denied liability.
MetroLoft, led by real estate veteran Nathan Berman, has accumulated numerous other construction violations across its projects. City records indicate the developer currently has 40 open violations on three active properties. The company, a major player in converting New York City office buildings into luxury residences, has undertaken over 8 million square feet of such conversions since 1997.
These issues arise as New York City experiences a surge in commercial-to-residential conversions, driven by high office vacancy rates post-COVID and a critical housing shortage. Factors contributing to this trend include declining commercial property values and government policies like zoning reforms and tax incentives aimed at accelerating these projects.
One of MetroLoft's current large-scale projects involves the conversion of the former Pfizer headquarters at 235 E. 42nd Street into approximately 1,600 apartments. On Tuesday, structural support columns at this site buckled, leading to an emergency stop-work order. Construction crews have been working to shore up the building, with temporary supports installed from the 18th to 23rd floors, and work planned to extend to the ninth floor and roof. This project has 22 open violations, including the emergency order. Previous violations at this site include a heavy object falling through multiple floors and concerns about unlicensed welding and inadequate ventilation for gas machinery.
Other MetroLoft properties also face violations. The conversion at 25 Water Street has eight open violations following the resolution of 42 others. At 111 Wall Street, a waterfront conversion project has 10 open violations after resolving 18 others, including incidents involving improper use of power tools and a heavy container falling during loading, which resulted in a worker's hospitalization.
A spokesperson for MetroLoft declined to comment on the ongoing lawsuits and violations related to the Pfizer Building incident.