1 Seaport was to have been a 60-storey, all-glass luxury residential tower in Manhattan.
Instead, it became one of the biggest condominium nightmares to happen to New York City all because the builder had sought to save costs on the foundation of what would have been an iconic landmark, but instead has become the leaning tower of New York.
The developer of 1 Seaport, Fortis Property Group, had opted for a cost-saving shortcut on the building’s foundation that ultimately caused the infamous lean. Instead of using the standard Manhattan skyscraper practice of driving deep piles into bedrock for stable support, especially crucial on the site’s soft, wet, landfill-adjacent soil near the East River, Fortis chose a cheaper “soil improvement” method. This involved techniques like draining, compacting, and injecting materials, such as grout or chemical consolidation, to strengthen the upper soil layers before pouring a concrete slab foundation. The approach had reportedly saved about $6 million (roughly 2% of the total project budget), but it had led to uneven settlement as the soil continued to shift under the weight of the 670-foot, 60-story tower. This had resulted in the structure leaning approximately three inches to the north, with some reports noting up to eight inches at higher levels, which had been discovered around 2018 during construction. The decision had ignored engineering recommendations and warnings about the risks on such unstable ground, sparking lawsuits. The shortcut had turned a minor savings into major delays, litigation, stalled progress, and a project that has remained unfinished and largely abandoned for years. It serves as a cautionary tale in high-rise development about prioritizing short-term cost cuts over long-term structural integrity.
How Palace Place differs
Palace Place was built with a caisson foundation, a very sound, advanced foundation system found in the world’s best-known skyscrapers and in marine construction environments like New York and Hong Kong. In fact, the construction of Palace Place had garnered headlines from around the world. Palace Place stands on 145 tower caissons that had been driven into solid bedrock up to 120 feet deep. As a comparison, the Burj Khalifa, the world’s tallest building in Dubai, uses 192. These caissons install directly into bedrock and are considered the highest standard for foundations. The foundation of Palace Place had been built using extra-deep shaft caissons.
A caisson foundation is a foundation system used to support tall buildings by anchoring them to solid bedrock. It consists of a prefabricated cylinder that is drilled into the ground to bedrock where steel beams and rebar are inserted through the tubes and into the rock to pin the caisson in place. The tube is then filled with concrete and capped to support the major columns of the building.
Caissons are typically used when shallower foundations, like strip footings, cannot be constructed safely. Caisson foundations offer help to resist the tipping effect of winds on the building and to control movement in an earthquake. The world’s largest skyscrapers employ caisson foundations. Caisson foundations offer the greatest stability for large structures, especially at great depths.
The foundation is the most important aspect of any construction. You only get one chance to do it right. This is why buyers must realize that “newer” is not “better”. In today’s competitive market, some developers prioritize cost savings over long-term quality, as has tragically been shown by the 1 Seaport disaster in New York, where shortcuts on the foundation caused a permanent lean despite approvals from city engineers and building codes. Buyers often enter the condo market with a false sense of security, assuming all new condos are built to the same high standards without knowing the right questions to ask about foundations, structural integrity, or the building envelope. Unfortunately, Toronto has seen its share of new and recent condos plagued by serious issues—like envelope failures, leaks, or premature structural repairs—leaving owners facing massive special assessments or diminished value.
When was the last time you saw a condo brochure highlight the foundation system or cladding details? They sell the dream, not the engineering.
Completed in 1993, at a record $200-million, Palace Place was built by Bramalea Limited, Canada’s largest builder at the time. Palace Place was built to set a standard and example for condominiums in Canada.
When you work with the Dalinda Team, you partner with seasoned professionals who scrutinize every detail of construction and recommend only the most select, high-quality projects for your consideration.
Watch the 1 Seaport video below for more on this condo tragedy.
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Palace Place, 1 Palace Pier Court, and Palace Pier, 2045 Lake Shore Boulevard West, in Humber Bay Shores.
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Luke Dalinda, Realtor. Royal LePage Real Estate Services Ltd., Brokerage.
View all current and past Palace Place listings for sale here.