"But aspects of the delivered property fall woefully short of industry standards and contractual requirements, the condo board at 514 West 24th Street claimed in a lawsuit filed this week. The board claimed in its complaint that JDS and Largo left swaths of the promised project unfinished or installed improperly, including leaving empty rooms instead of wine cellars; trash heaps instead of finished storage areas; and non-working bathrooms, laundry facilities, and saunas in common areas abandoned before they were completed."
"The board also alleged that Stern misappropriated $1 million obtained from Madison Realty Capital, which was to be used to complete the building's amenities. Instead, the board claims, he used it for unrelated real estate ventures through JDS. Stern had agreed he would fix the defects before abandoning the project and leaving the board and unit owners to repair and replace issues in the building and completing proposed amenities, according to the complaint."
The condo board at 514 West 24th Street alleges JDS Development Group and Largo Investments delivered numerous promised amenities unfinished or improperly installed, including empty rooms instead of private wine cellars, trash-filled storage areas, and non-working common bathrooms, laundry facilities, and saunas. The board alleges CEO Michael Stern misappropriated $1 million intended to complete amenities and abandoned the project after agreeing to fix defects. Stern served as condo board president from 2020 until February 2025, during which sponsors controlled the board. The board seeks at least $5 million and lists multiple construction defects and malfunctioning systems.
Read at therealdeal.com
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