Upscale New UES Condo Is Dangerous, Moldy, Poorly Built, Residents Say

UPPER EAST SIDE, NY — A brand-new luxury condo building on the Upper East Side has been plagued by shoddy construction and financial misdealings by its developers, residents allege in a new lawsuit.

The suit was filed Tuesday by the board of 172 East 82nd St., a glassy 10-story building also known as Étage that wrapped up construction last year on the corner of Third Avenue.

Though marketed as being "of a premier luxury caliber," residents say the building suffers from "significant life safety issues," including major cracks along its limestone facade panels that have caused debris to rain onto the East 82nd Street sidewalk, a lack of required fire-preventing materials, pervasive water leaks, drafty windows, "odor issues," discolored tap water and mold in two apartments.

Meanwhile, residents say the building's developers — a group that includes the companies Nexus Building Development and Dankron — "exploited the Condominium to serve and promote their own financial interests," taking complete control over the building's board in order to avoid repairing the faulty construction.

In one case, the developers appointed one of their own affiliates as the building's management company, and used the condo's funds to pay its own staff and vendors instead of covering "necessary repairs," the suit says.

Meanwhile, developers have allowed the building's temporary certificate of occupancy to lapse without ever obtaining a permanent certificate, the suit alleges.

City records show the building's developers have racked up tens of thousands of dollars in fines for construction-related violations, and recently faced complaints about lingering debris around the building site, which one resident called "a blight on the neighborhood."

Residents say they are owed a combined $16 million in damages from the developers and the people they appointed to the condo board, for alleged breach of contract, fraud and a breach of fiduciary duty, the suit says.

They also seek $5 million from ODA Architects, a prominent firm that designed the building, whom residents accuse of fraud for falsely claiming that the building was up to code.

ODA declined to comment, while Nexus and Dankron did not immediately respond to requests for comment.

The suit mirrors another case brought in May by residents of a luxury condo building at 165 East 62nd St., who alleged their building was "rife with defective conditions." That suit, which sought $8 million in damages, is still pending in court, records show.