Grand Rapids, Michigan-based Eenhoorn Development hoped it would be the one to end the years-long litigation plaguing the 1 Park Row tower in the Financial District.
But the firm, which quietly acquired a majority stake in the 23-story condo building late last year, is facing a new lawsuit from its partner accusing Eenhoorn of fraud.
An affiliate of New York City-based Circle F Capital alleges Eenhoorn and its main principal used associates, many with links to Grand Rapids, to act as sham buyers to falsely obtain the required number of legitimate buyers under New York state law to allow for a condo conversion.
The lawsuit also alleges that Eenhoorn is trying to wrest control of Circle F’s partnership interests valued at $17 million.
Eenhoorn did not return a request to comment. It has not yet filed a response to the allegations of the lawsuit in court.
“This suit details a deliberate and disturbing scheme to strip our client of its ownership rights in a historic Manhattan property,” said Terrence and Darren Oved of Oved & Oved, who represent the Circle F affiliate. “This is not a business disagreement but a calculated asset grab masquerading as one – which we are determined to redress, remedy and restore.”
The lawsuit adds another chapter to the drama surrounding 1 Park Row, a site best known as the former home of J&R Music and Computer World. After the famed music store closed in 2014, its owners pitched rebuilding the site into an “unprecedented retailing concept and social mecca.”
By 2021, a new developer, Circle F, acquired the property and secured a $90 million construction loan. Circle F, led by David and Gary Feldman, planned to build 63 apartments, three floors of office and ground-floor retail.
But the project fell into a mess of litigation. Circle F brought a lawsuit against its construction manager in 2023, alleging a subcontractor’s mistake led to “colossal” issues and delays. The developer pivoted to condos and, two years later, sales launched in early 2025.
According to Circle F’s new lawsuit, in July 2025, Gary Feldman was approached by Eenhoorn co-founder Paulus Heule to sell the property for about $93 million. But, instead, the two developers worked out a deal. Feldman entered into a partnership with Eenhoorn, where Circle F would retain a 20 percent stake in the project and Eenhoorn would hold the rest, the lawsuit claims.
As part of the partnership deal, Circle F also had the right to buy the building’s penthouse and other units if it made a $17 million payment six months following December 2025. But just months into the deal the partnership was falling apart.
The lawsuit alleges Eenhoorn defendants “manufactured a series of pretextual default allegations” against Circle F so Circle F would be forced to forfeit its interests and pushed out of the partnership.
The lawsuit also makes striking allegations about Eenhoorn’s compliance with New York state law regarding condo offerings. Circle F alleges that Eenhoorn used sham buyers in order to get the project approved as a possible condo conversion. Under New York state law, at least 15 percent of condo units had to be “bona fide purchasers” unrelated to the sponsor, according to the lawsuit.
But Eenhoorn only found six of the actual buyers. Circle F alleges Huele instead used four straw buyers. These straw buyers were either employees or business associates. Eenhoorn and Heuele even funded the deposit for at least four of these contracts, according to the lawsuit.
Eenhoorn and the straw buyers ultimately backed out of their purchase agreements. All the money went back to Eenhoorn or the buyers, Circle F’s lawsuit alleges.
The firm now lists all the units as rentals, but failed to amend the offering plan, which the lawsuit alleges is a violation of the New York Attorney General’s requirements.
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