June 30th, 2011
A settlement will give buyers who backed out of contracts on $50 million worth of luxury apartments in Flushing’s $1 billion Sky View Parc complex a 75 percent refund on their $5 million down payments, the New York Post reported. The arrangement will recoup $3.69 million plus interest for 118 buyers. Adam Leitman Bailey, the lawyer who represented the buyers, called the decision “the largest [Interstate Land Sales Act] settlement on record in New York.”
The buyers filed suit last year, making use of a 1968 federal law known as the Interstate Land Sales Full Disclosure Act, which requires condo sponsors to register their project with the Department of Housing and Urban Development and provide full disclosure to protect buyers from corruption. The suit alleged failure by Onex Real Estate Partners to disclose “substantial problems” at the project to the buyers. Those issues included a $160 million cost overrun and loan restructurings.
In a statement, Onex President Michael Dana said, “As the new sponsor we wanted to do the right thing for the project and move on.” [Post]