Grand Rapids, Michigan-based Eenhoorn Improvement hoped it might be the one to finish the years-long litigation plaguing the 1 Park Row tower within the Monetary District.
However the agency, which quietly acquired a majority stake within the 23-story apartment constructing late final yr, is going through a brand new lawsuit from its accomplice accusing Eenhoorn of fraud.
An affiliate of New York Metropolis-based Circle F Capital alleges Eenhoorn and its essential principal used associates, many with hyperlinks to Grand Rapids, to behave as sham patrons to falsely get hold of the required variety of legit patrons beneath New York state regulation to permit for a apartment conversion.
The lawsuit additionally alleges that Eenhoorn is attempting to wrest management of Circle F’s partnership pursuits valued at $17 million.
Eenhoorn didn’t return a request to remark. It has not but filed a response to the allegations of the lawsuit in court docket.
“This swimsuit particulars a deliberate and disturbing scheme to strip our shopper of its possession rights in a historic Manhattan property,” stated Terrence and Darren Oved of Oved & Oved, who symbolize the Circle F affiliate. “This isn’t a enterprise disagreement however a calculated asset seize masquerading as one – which we’re decided to redress, treatment and restore.”
The lawsuit provides one other chapter to the drama surrounding 1 Park Row, a web site finest often known as the previous house of J&R Music and Pc World. After the famed music retailer closed in 2014, its homeowners pitched rebuilding the positioning into an “unprecedented retailing idea and social mecca.”
By 2021, a brand new developer, Circle F, acquired the property and secured a $90 million construction loan. Circle F, led by David and Gary Feldman, deliberate to construct 63 residences, three flooring of workplace and ground-floor retail.
However the venture fell into a large number of litigation. Circle F introduced a lawsuit towards its building supervisor in 2023, alleging a subcontractor’s mistake led to “colossal” points and delays. The developer pivoted to condos and, two years later, gross sales launched in early 2025.
In response to Circle F’s new lawsuit, in July 2025, Gary Feldman was approached by Eenhoorn co-founder Paulus Heule to promote the property for about $93 million. However, as a substitute, the 2 builders labored out a deal. Feldman entered right into a partnership with Eenhoorn, the place Circle F would retain a 20 p.c stake within the venture and Eenhoorn would maintain the remainder, the lawsuit claims.
As a part of the partnership deal, Circle F additionally had the precise to purchase the constructing’s penthouse and different items if it made a $17 million fee six months following December 2025. However simply months into the deal the partnership was falling aside.
The lawsuit alleges Eenhoorn defendants “manufactured a sequence of pretextual default allegations” towards Circle F so Circle F can be pressured to forfeit its pursuits and pushed out of the partnership.
The lawsuit additionally makes placing allegations about Eenhoorn’s compliance with New York state regulation relating to apartment choices. Circle F alleges that Eenhoorn used sham patrons so as to get the venture permitted as a attainable apartment conversion. Underneath New York state regulation, no less than 15 p.c of apartment items needed to be “bona fide purchasers” unrelated to the sponsor, in keeping with the lawsuit.
However Eenhoorn solely discovered six of the particular patrons. Circle F alleges Huele as a substitute used 4 straw patrons. These straw patrons had been both staff or enterprise associates. Eenhoorn and Heuele even funded the deposit for no less than 4 of those contracts, in keeping with the lawsuit.
Eenhoorn and the straw patrons in the end backed out of their buy agreements. All the cash went again to Eenhoorn or the patrons, Circle F’s lawsuit alleges.
The agency now lists all of the items as leases, however did not amend the providing plan, which the lawsuit alleges is a violation of the New York Legal professional Common’s necessities.
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