Real Estate Update

Ezra Dyckman and Vivek Chandrasekhar

New Partnership Audit Rules Create Uncertainties

By Ezra Dyckman and Vivek Chandrasekhar |

In their Taxation column, Ezra Dyckman and Vivek Chandrasekhar discuss the "good news" and the "bad news" with the new partnership audit rules.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Lafayette Boynton v. Pickett,” where the court upheld a decision to return a disabled tenant to his apartment after the execution of a warrant for eviction.

Peter Fisch and Andrew Gaines

Pension Fund Investments in Real Estate

By Peter Fisch and Andrew Gaines |

In their Transactional Real Estate column, Peter Fisch and Andrew Gaines discuss the most important rules applicable to real estate investments by private pension funds.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews "BDS Associates v. QI Song Lin," which dealt with the issue of primary residence, and "NRI Group v. Crawford, where a landlord was barred from harassing "three-quarter house" tenants.

Adam Leitman Bailey and John M. Desiderio

The Rules for Allowing Pets in 'No-Pet' Buildings

By Adam Leitman Bailey and John M. Desiderio |

Adam Leitman Bailey and John M. Desiderio provide an in-depth discussion of the applicable laws protecting persons with disabilities looking for a waiver to allow them to keep a service pet in an otherwise "no-pet" building.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'MB Property Group v. Church & Swan Properties,' where a real estate broker provided sufficient proof of an implied agreement, allowing him to receive a commission.

Warren A. Estis and Alexander Lycoyannis

Airbnb Encounters Legal Barriers in NYC

By Warren A. Estis and Alexander Lycoyannis |

In their Landlord-Tenant column, Warren A. Estis and Alexander Lycoyannis discuss how although the popular website Airbnb has had great monetary success, most of its transactions involving New York City residential apartments appear to violate the law.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Gomez v. Rossrock,' a landlord-tenant case where the tenants fraudulent overcharge claim was dismissed, and '385 Bayview v. Warren,' a holdover proceeding where it was found that the landlord did not waive the holdover petition by accepting rent between the time of the service of the notice of termination and service of the petition.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Dormitory Authority of the State of New York v. Roman Catholic Church of Saint Ignatius,” involving easement by implication, where a school’s motion to enjoin an adjacent development failed, and “Wells Fargo Bank v. Pena,” where an action was stayed pending a decision in a New Jersey proceeding.

Bruce J. Bergman

Settlement Negotiations and the Statute of Limitations

By Bruce J. Bergman |

In his Foreclosure Litigation Column, Bruce J. Bergman asks the question: If the statute of limitations to foreclose a mortgage is expiring, do settlement negotiations with the borrower serve to save the lender from the defense of the statute of limitations if it then expires? Spoiler Alert: The answer is "Maybe."

Anthony S. Guardino

When Should Board Members Recuse Themselves?

By Anthony S. Guardino |

In his Zoning and Land Use Planning column, Anthony S. Guardino discuss how local governments typically have local residents making zoning decisions, and explores when conflicts of interest might require board member recusal.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Basis Yield Alpha Fund Master v. Morgan Stanley,' where the First Department found that reasonable reliance was sufficiently pleaded in support of plaintiff's fraud and fraudulent concealment causes of action, thus affirming the denial of the underwriter's motion to dismiss, and 'Yorkroad v. Corrigan,' where a tenant was granted significant rent abatements for the landlord's failure to remedy leaks.

Jeffrey B. Steiner and Scott A. Weinberg

Risk Retention Relief Possible With H.R. 4620

By Jeffrey B. Steiner and Scott A. Weinberg |

In their Financing column, Jeffrey B. Steiner and Scott A. Weinberg discuss the Preserving Access to CRE Capital Act of 2016, and explain how it would provide a measure of relief for lenders and borrowers accessing the commercial mortgage backed securities market, as it proposes to modify the risk retention regulations for CMBS securitizations scheduled to take effect later this year.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Osberger v. 18 Mercer Equity,' where a cooperative shareholder/proprietary lessee was found not entitled to recover attorney fees, and 'Elk 300 E. 83 LLC v. Dowd,' where the court allowed a grandson to assert succession rights to his grandmother's apartment.

Kenneth M. Block and Joshua M. Levy

The Importance of Construction Contract Coordination

By Kenneth M. Block and Joshua M. Levy |

In their Construction Law column, Kenneth Block and Joshua Levy identify the more common overlapping provisions of a project owner's agreement with the architect and contractor in order to provide guidance for the contract drafter.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Spartan Diner v. Patsalos,' where a complaint alleging breach of contract was dismissed, and 'Purifoy v. Walter Investment Management Corp.,' where the court allowed a breach claim against a mortgage servicer to survive.

Warren A. Estis and Jeffrey Turkel

Luxury Decontrol: Is a J-51 Notice Required?

By Warren A. Estis and Jeffrey Turkel |

In their Rent Regulation column, Warren A. Estis and Jeffrey Turkel survey the relevant case law over the last four years regarding the issue of whether an owner, in order to obtain high-rent high income luxury deregulation in a building that formerly received J-51 benefits, must first serve the tenant with a so-called J-51 notice.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'NRP Holdings v. City of Buffalo,' where a developer's promissory estoppel claims in a suit over a failed housing project survived dismissal, and 'Hempstead Housing Authority v. Moorer,' where the court ruled that the loss of home and the right against self-incrimination were more important than prejudice to the landlord.

Ezra Dyckman and Daniel W. Stahl

Congress Enacts Tax Exclusion for Foreign Pension Funds

By Ezra Dyckman and Daniel W. Stahl |

In their Taxation column, Ezra Dyckman and Daniel W. Stahl explain how the PATH Act created and expanded a number of exceptions to the Foreign Investment in Real Property Tax Act of 1980 rules that govern the taxation of foreign persons selling interests in real estate located in the United States. They go on to discuss one such provision which may encourage an increase in the investments of foreign pension funds in U.S. real estate.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Septimus v. Village of Lawrence,' 'Sedgwick v. Cruz,' and 'Manning v. Forest.'

Peter E. Fisch and Mitchell L. Berg

Pre-Emptive Rights in Partnerships and LLCs

By Peter E. Fisch and Mitchell L. Berg |

In their Transactional Real Estate column, Peter E. Fisch and Mitchell L. Berg write: When representing the sponsor of a real estate partnership or limited liability company, in the absence of an affirmative obligation on the part of the existing investors to provide any additional needed capital, it is important that the documents governing the entity provide for sufficient flexibility for the sponsor to address the entity's future capital needs.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews 'Thor 725 8th Avenue v. Goonetilleke,' where the court granted the landlord judgment on a guaranty breach claim, and a reduced attorney fee award was found to be warranted.

Adam Leitman Bailey and Dov Treiman

Understanding Single-Room Occupancy Laws

By Adam Leitman Bailey and Dov Treiman |

In their Housing Law column, Adam Leitman Bailey and Dov Treiman explain the laws of single-room occupancy buildings standing in the shoes of the purchaser or owner attempting to turn these dwellings into one-family or multi-family housing without restrictions.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'BT Holdings v. Village of Chester,' where, finding no attorney-client relationship in an Article 78 proceeding, the lawyer and firm were not disqualified, and 'Olivero v. NYCHPD,' where a succession claim to a New York City apartment was overturned.

3 Columbus Circle

Marketplace: Nordstrom Signs Lease to Expand 57th St. Retail Space

By Monica Paquette |

Nordstrom Inc. has signed a 23-year lease with SL Green Realty Corp. and The Moinian Group for 43,000 square feet at 3 Columbus Circle in Manhattan.

Warren A. Estis and Michael E. Feinstein

The Exhibiting Requirement in Post-Foreclosure Evictions

By Warren A. Estis and Michael E. Feinstein |

In their Landlord-Tenant column, Warren Estis and Michael Feinstein discuss the case 'Deutsche Bank v. Dirende,' which held that "exhibiting" the referee's deed in a post-foreclosure eviction requires personal delivery.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Baez v. NYCHA,' dealing with a class action alleging NYCHA's failure to abate mold and excessive moisture problems, and 'Mauriello v. Flocco,' where factual issues were raised if the doctrine of estoppel applies barring a usury defense claim.

1251 Avenue of the Americas

Marketplace: DLA Piper to Reconfigure Rockefeller Center Offices

By Monica Paquette |

DLA Piper and Mitsui Fudosan America Inc. have developed plans for a major transformation of the law firm's office space at 1251 Avenue of the Americas in Rockefeller Center. Also, Dropbox has signed a five-year lease in the Flatiron district that nearly triples the size of its New York City office.

Anthony S. Guardino

Case Law and Statutes Govern Landmark Designations

By Anthony S. Guardino |

In his Zoning and Land Use Planning column, Anthony Guardino explains that under well-established New York law, local governments must consider the benefits of landmark designations as well as the burdens imposed on property owners.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Berkowitz v. 29 Woodmere Blvd. Owners,' where an apartment owner showed that a co-op board had discriminatory motive to reject purchasers, and '30 East 18th, LLC v. Mitchel,' where the Civil Court properly dismissed a petition for a landlord's attempt to collect an overcharge.

100 Park Ave.

Marketplace: Philly-Based Firm Expanding NYC Office

By Monica Paquette |

Stradley Ronon Stevens & Young is doubling the size of its New York City office at 100 Park Ave., near Grand Central Terminal. Also, Expedia Inc., a leading global online travel company, has found a fitting location for its New York City office at one of the world's most iconic tourist destinations, the Empire State Building.

Richard J. Reilly, Jr. and Jeffrey B. Steiner

Emergence of a New Approach to Financing Commercial Loans

By Richard J. Reilly, Jr. and Jeffrey B. Steiner |

In their Financing column, Richard J. Reilly, Jr. and Jeffrey B. Steiner describe some of the key structural features of post-crisis CRE CLO transactions and how they differ from pre-crisis CRE CLO transactions.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews "1515 Macombs v. Jackson," where, absent proof of arrears, summary judgment dismissing nonpayment action was granted, and "Matter of New Creek Bluebelt, Phase 4," where the court awarded the claimants attorney fees under Eminent Domain law.

20 Broad St.

Marketplace: Developer to Turn NYSE-Adjacent Building Into Luxury Apartments

By Monica Paquette |

Metro Loft Management has acquired the leasehold interest at 20 Broad St. in lower Manhattan from Vornado Realty Trust for $185 million. Also, Equinox Holdings Inc. will open a new fitness club, its 28th in New York City, at 315 Park Avenue South.

Todd E. Soloway and Joshua D. Bernstein

Arbitration Provisions in Hotel Management Agreements

By Todd E. Soloway and Joshua D. Bernstein |

In their Hospitality Litigation column, Todd Soloway and Joshua Bernstein examine the course that hotel owners and operators may chart in determining which, if any, alternative dispute resolution clause will apply to the parties' dispute.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews decisions involving the contract provisions governing supervision of home construction by an architect on behalf of the homeowner, a landlord's attempt to quash a tenant's subpoena of documents from the NYS Division of Housing and Community Renewal and a minor's succession rights to a Section 8 apartment.

Major improvements are slated for DoubleTree Suites at 1568 Broadway.

Marketplace: Developer Acquires Leasehold Interest for Times Square Hotel

By Monica Paquette |

Maefield Development has acquired the entire leasehold interest for DoubleTree Suites by Hilton-Times Square, at 1568 Broadway, from a subsidiary of Sunstone Hotel Investors Inc., for $540 million. Also, Bergdorf Goodman will have more retail space at its flagship store at 754 Fifth Ave. through an expansion and relocation of its executive offices to an adjacent building at 4 W. 58th St.

Warren A. Estis and Jeffrey Turkel

The Altman Conundrum

By Warren A. Estis and Jeffrey Turkel |

In their Rent Regulation column, Warren Estis and Jeffrey Turkel discuss vacancy luxury deregulation in light of the cases 'Altman v. 285 West Fourth, LLC,' 'Aimco 322 East 61st Street v. Brosius,' and 'Dixon v. 105 West 75th Street.'

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews 'Beacon 109 204-206 v. Leon,' where a landlord failed to support its claim that the tenant caused leaks that damaged the lobby, and 'Deutsche Bank v. Dirende,' where the court found the petition in a post-foreclosure summary proceeding to be fatally defective.

Architectural renderings of the proposed Marketplace at Empire Outlets on Staten Island.

Marketplace: Joint Venture Seeks to Bring Culinary Market to SI Waterfront

By Monica Paquette |

Brooklyn-based BFC Partners, in collaboration with Gansevoort Market, will launch a new culinary market at BFC's Empire Outlets on the Staten Island waterfront along Richmond Terrace, next to the Staten Island Ferry terminal in St. George.

Adam Leitman Bailey and Dov Treiman

The State of Cooperative and Condominium Law in 2015

By Adam Leitman Bailey and Dov Treiman |

Adam Leitman Bailey and Dov Treiman review the significant changes that took place in cooperative and condominium law this past year.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews cases involving a Yellowstone injunction, a broker's commission and breach of fiduciary claims, and a landlord's claims that a tenant was allowing a rent-stabilized apartment to be used for illegal purposes.

The Teacher's Retirement System is upgrading its headquarters at 55 Water St.

Marketplace: One of Country's Largest Pension Systems Renews Downtown Lease

By Monica Paquette |

The Teacher's Retirement System of the City of New York has renewed its lease with New Water Street Corp. at its 55 Water St. headquarters.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews 'Jobin Organization v. Bemar Realty', 'Clinton Hill Holding 1, v. Kathy & Tania,' and 'U.S. Bank National Assoc. v. Glusky'.

Ezra Dyckman and Daniel W. Stahl

Just Kidding? IRS Requires Rent Allocations to Have Teeth

By Ezra Dyckman and Daniel W. Stahl |

In their Taxation column, Ezra Dyckman and Daniel W. Stahl discuss the tax issues presented to both a landlord and tenant when the landlord receives a payment of prepaid rent.

517-523 West 29th Street..122115

Marketplace

By Monica Paquette |

Six Sigma NYC, a boutique design and development firm, has plans to create a new luxury condo building in Chelsea. The site, currently a Tuck-It-Away Self-Storage facility at 517-523 W. 29th St., was acquired for $54.75 million from Nick Sprayregen, the president of Tuck-It-Away.

255 Greenwich St.

Marketplace: Target to Open 2nd Manhattan Store on Greenwich Street

By Monica Paquette |

Minneapolis-based retailer Target has signed a long-term lease with Jack Resnick & Sons Inc. for 48,242 square feet at 255 Greenwich St. Also, a Long Island City commercial property at 48-18 Van Dam St. has been acquired by Local Union 813, a member of the International Brotherhood of the Teamsters Pension Fund and its affiliate, Local 27 Pension Fund, for $20 million.

Bruce J. Bergman

Foreclosing Multiple Mortgages in One Action: No Longer an Issue

By Bruce J. Bergman |

In his Foreclosure Litigation column, Bruce J. Bergman writes: If a lender holds more than one mortgage with the same borrower secured by the same parcel(s), and if there are no intervening liens, can those mortgages conveniently be pursued in one action? A recent case clearly says "yes."

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “In re September 11 Litigation," where the Second Circuit clarified the recovery scheme for WTC leases.

Warren A. Estis and Michael E. Feinstein

Yellowstone Injunctions: Timeliness Is Critical

By Warren A. Estis and Michael E. Feinstein |

In their Landlord-Tenant column, Warren A. Estis and Michael E. Feinstein discuss the case 'Riesenburger Properties v. PI Associates' to highlight the critical importance of filing a motion for Yellowstone relief prior to the expiration of the cure period.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews cases involving a failure to commence a foreclosure action within six years, whether a defendant in a summary nonpayment proceeding waives all jurisdictional defenses as a consequence of interposing unrelated counterclaims, and an alleged chronic rent delinquency.

A ribbon cutting with, from left, founding partners Greg Rinckey and Mathew Tully; managing partner Peter Charnetsky; COO Graig Cortelyou; Broome County legislator Kim Myers; state Assemblywoman Dona Lupardo; and Vestal Town Supervisor John Schaffer.

Marketplace: Upstate Law Firm Expands Near Binghamton

By Monica Paquette |

Albany-based, full-service law firm Tully Rinckey has expanded into New York's Southern Tier region with a new office in Vestal. Also, a joint venture of Dalan Management and Avenue Realty Capital has acquired four properties in Alphabet City for $16.75 million.

Todd E. Soloway and Joshua D. Bernstein

Marriott/Starwood Merger: Good for Brands, Not Owners

By Todd E. Soloway and Joshua D. Bernstein |

In light of Mariott's aquisition of Starwood Hotels, Todd E. Soloway and Joshua D. Bernstein explore the provisions of hotel management and license agreements which define the standards by which a hotel operator must run the owner's business, and they analyze an owner's rights and remedies when presented with issues of brand loyalty.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'P&T Management v. Aponte', where an issue of the reasonableness of cigarette smoke coming from tenant's apartment was found to be a question of fact for trial; and '1644 Broadway v. Jimenez', where it was held that the property owner properly "exhibited" a copy of the deed of foreclosure.

4 World Trade Center

Marketplace: SNY to Move to 4 World Trade Center

By Monica Paquette |

SNY, also known as SportsNet New York, plans to move its midtown Manhattan headquarters and studio to 4 World Trade Center, where it has scored a 17-year lease with Silverstein Properties Inc. for 83,000 square feet. Also, Houghton Mifflin Harcourt is again increasing the size of its New York City office at 3 Park Ave.

Anthony S. Guardino

Ruling Against Sign Code Has Implications for New York

By Anthony S. Guardino |

In his Zoning and Land Use Planning column, Anthony Guardino discusses how a decision by the U.S. Supreme Court is likely to force local governments to reconsider many of their sign ordinances.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews "Commandeer Realty v. Allegro," where the court found that a first-filed annexation request gets priority over competitors; and "92 Bergenbrooklyn v. Cisarano," where the acceptance of rent by the landlord after commencement of a holdover proceeding vitiates the termination notice on the tenant.

51 Astor Place

Marketplace: 51 Astor Place Gets 3 New Tenants

By Monica Paquette |

Edward J. Minskoff Equities Inc. at 51 Astor Place has signed several retail contracts recently with Flywheel, Chop't Creative Salad Company and Bluestone Lane Coffee.

Jeffrey B. Steiner and Jason R. Goldstein

Pitfalls in Negotiating Special Purpose Covenant Recourse

By Jeffrey B. Steiner and Jason R. Goldstein |

In their Financing column, Jeffrey B. Steiner and Jason R. Goldstein summarize some of the key issues related to substantive consolidation and one of the principal loan documentation points that frequently becomes the focus of negotiation.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Trump Village v. Bezvoleva,' where the court found that a defamation claim brought by a co-op president against defendant shareholders was allowed to proceed; and 'MID Bronx HDFC v. Paulino,' where a tenant was denied dismissal of her landlord's nuisance holdover proceeding.

30 Hudson Yards is expected to be completed in 2019.

Marketplace: Investment Firm Moving HQ to Planned Hudson Yards Offices

By Monica Paquette |

Global investment firm KKR & Co. LP has announced that it is acquiring 10 office floors at 30 Hudson Yards, a proposed 90-story tower being developed by Related Companies and Oxford Properties Group.

An architectural rendering of Manhattan West

Marketplace: Companies Partner in Development of $8.6B Manhattan West Complex

By Monica Paquette |

A subsidiary of Brookfield Property Partners has formed a joint venture with Qatar Investment Authority in the development of Manhattan West. Upon completion, the estimated value of the five-building, mixed-use complex, is anticipated to reach $8.6 billion. Also, Kaufman & Company, a Cleveland-based law firm, has moved its New York City offices to 420 Lexington Ave.

Warren A. Estis and Jeffrey Turkel

Non-Primary Residence: Tenant Perjury No Longer Permitted

By Warren A. Estis and Jeffrey Turkel |

In their Landlord-Tenant column, Warren A. Estis and Jeffrey Turkel write: Until recently, courts in non-primary residence holdover proceedings turned a blind eye where tenants previously made statements in their tax returns—under penalty of perjury—that contradicted their claims of primary residence. That all changed with the ruling in 'Ansonia Assoc. Partnership v. Unwin.'

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews 'Galil Kineret v. Chin', '229 West 113th Street v. Lamb', and 'New York Shun on Realty Development v. Mathieu'.