Omnibuild, HFS in $100 million plus dispute about XI luxury condo construction project

0
1344
xi project rendering

Omnibuild says it will part way with HFS Capital Partners on the XI condominium project and end its agreement to be the project’s construction manager for cause, following “many months of working to resolve significant funding issues,” Crain’s New York Business reports.

The builder has reportedly filed liens for more than $100 million of work it had done for the project along Chelsea’s High Line.

Omnibuild president Paul Foschi said in a statement that the firm will part ways with HFZ on The XI and end its agreement to be the project’s construction manager for cause, following “many months of working to resolve significant funding issues.”

“The current circumstances of the project leave Omnibuild in an untenable position with no option but to disengage from further involvement,” Omnibuild president Paul Froschi said in the statement, adding that the company “is committed to a professional and orderly transition of the project.”

However, HFZ disputed this, saying that the company fired Omnibuild on June 29 because it had not been fulfilling its obligations on The XI and that it has hired Pavarini McGovern Construction to finish the project.

“The lien is an attempt by Omnibuild to be paid money for work not done,” HFZ spokesperson Philip Ramirez said in a statement. “We look forward to having the facts clarified through the proper legal channels and the lien discharged in short order.”

Pavarini McGovern did not immediately respond to a request for comment, Crain’s reported.

Property records show that the developer bought the Manhattan site at 76 11th Ave. in 2015 for $870 million. The more than 900,000 sq. ft. project occupies a full city block.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

I accept the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.