The investors and developers of The Setai, the spa-condo paradise conversion at 40 Broad Street, haven't been in a very spa-y mood lately. In fact, the glow is off and the cucumbers have fallen from their eyes. What's killed the good mood? Litigation and money troubles. Investor DelShah Group is suing the project's developer, Zamir Equities, and the three banks that provided the project's first loan. Michael Shah, principle of the DelShah Group, which reportedly invested $4.185 million in the project, alleges that the Setai's construction budget was "false, inaccurate, and misleading." He also brings up the claim that the first buyer to close -- eight units have now closed -- was connected to the sponsor. What's more, the lawsuit alleges that Zamir Equities diverted construction money for the build-out of a ground floor restaurant leased to principal Asher Roshan Zamir. Scandalous! Shah wants payback in punitive damages and attorney fees. Maybe everyone should take a time out in the building's 44,000-square-foot amenity space.
· Serenity Pow! Lawsuit Wallops Once-Serenely Confident Setai Condo [NYO]
· The Setai at 40 Broad Street [StreetEasy]
· All Setai coverage [Curbed]