Real Estate Update

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 “1301 Properties v. Abelson,” where ex-Dewey partners were spared liability for lease payments.

Bruce J. Bergman

Legislative Assaults on Mortgage Holders

By Bruce J. Bergman |

In his Mortgage Litigation column, Bruce J. Bergman discusses a disturbing new law just passed in New York's Town of Hempstead.

Ezra Dyckman and Daniel W. Stahl

Conflicting N.Y. City and State Transfer Tax Rulings

By Ezra Dyckman and Daniel W. Stahl |

In 2015, Ezra Dyckman and Daniel W. Stahl discuss the tax on transfers of real property and two decisions involving the interaction between the rules governing a mere change in form and the transfer of a controlling interest in an entity owning real property. In one holding, New York City prevailed, but the same taxpayer on the same issue prevailed in the state case.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Colin Realty v. Manhasset Pizza,' where the court found that the defendant did not have any "easement, license, occupancy rights, or other right of access over the plaintiff's real property," and 'AR v. GR' where a Referee ruled that the asking price for the subject home was unrealistically high following Super Storm Sandy.

Kenneth M. Block and Joshua M. Levy

Recommended Owner Modifications to Standard AIA Documents

By Kenneth M. Block and Joshua M. Levy |

In their Construction Law column, Kenneth M. Block and Joshua M. Levy offer suggestions for modifications to B101 (Standard Form of Agreement Between Owner and Architect) and A107 (Standard Form of Agreement Between Owner and Contractor for a Project of Limited Scope) forms.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Picaro v. Pelham 1130,' where the NYC Department of Buildings was released from liability for violation of ADA and Fair Housing Act in relation to a landlord shutting down an elevator.

Adam Leitman Bailey and Dov Treiman

The Sound and the Fury: Noise in Rentals, Co-ops and Condos

By Adam Leitman Bailey and Dov Treiman |

In their Housing Litigation column, Adam Leitman Bailey and Dov Treiman discuss and explain the noise laws and remedies in New York.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Flushing LLC v. 33 Development', where the court found that a binder to a contract was only an agreement to agree, not a binding contract as some material terms were missing, and 'Dormitory Authority v. Samson Construction', where breach of contract and negligence claims against architects were allowed to proceed where the project was found to be "so affected with the public interest that the failure to perform competently can have catastrophic consequences."

Warren A. Estis and Alexander Lycoyannis

Airbnb Faces Strong Headwinds in N.Y. Courts

By Warren A. Estis and Alexander Lycoyannis |

In their Landlord-Tenant column, Warren A. Estis and Alexander Lycoyannis explore some recent court decisions concerning the short-term rental of residential apartments via Airbnb.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Soundings v. Foerster,' which held that a condo may sue to rescind a unit whose buyer hid her intent to use the unit as a day care center, and 'Andrews v. Acacia,' where a drug facility resident was afforded due process by the court.

Anthony S. Guardino

Court Limits Judicial Review of SEQRA Positive Declaration

By Anthony S. Guardino |

In his Zoning and Land Use Planning column, Anthony S. Guardino discusses how a ripeness decision by the New York Court of Appeals imposes a significant financial burden on applicants who seek to challenge positive determinations under SEQRA.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Terzo v. 33 Fifth Avenue,' where transfer of a co-op to the deceased shareholders's sons was upheld, and 'Israel Realty v. Shkolnikov,' where the court found that even if certain work done to an apartment was mandated by law, it can still be the basis of a constructive eviction claim by the tenant.

Scott E. Mollen

Realty Law Digest

By 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 “78 Havemeyer v. Abuzaid,” “Mansfield Owners v. Phillip,” and “JP Morgan Chase v. Barbara.”

Jeffrey B. Steiner and David Broderick

Secured Claims Not Impaired by Housing Restrictions

By Jeffrey B. Steiner and David Broderick |

In their Financing column, Jeffrey B. Steiner and David Broderick discuss 'In re Sunnyslope Housing Limited Partnership,' where the Ninth Circuit held that subordinate affordable housing restrictions should not impair the value of a senior lender’s secured claim in bankruptcy.

Todd E. Soloway and Joshua D. Bernstein

Kesha, Freedom, and 'Efficient Breach'

By Todd E. Soloway and Joshua D. Bernstein |

In their Real Estate Litigation column, Todd Soloway and Joshua Bernstein answer the question: "What do pop singer Kesha, hotel owners and other parties to commercial contracts have in common?"

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews 'Reinhard v. Connaught Tower Corp,' where the court granted a co-op owner 100 percent abatement on a constructive eviction claim for smoke infiltration; and 'West 97th St. Realty Corp. v. Aptaker,' where a tenant was denied dismissal of a holdover eviction petition.

Scott E. Mollen

Realty Law Digest

By Scott E. Mollen |

Scott E. Mollen reviews "Rebenwurzel v. Swieca," where the court denied summary judgment to a real estate broker seeking a brokerage commission.

Warren A. Estis and Jeffrey Turkel

How Grim is 'Grimm'?

By Warren A. Estis and Jeffrey Turkel |

In their Rent Regulation column, Warren A. Estis and Jeffrey Turkel examine recent case law interpreting and applying 'Grimm v. DHCRl,' where the Court of Appeals ruled that the four-year look-back period for determining a stabilized rent can be breached where a tenant can establish that the base rent was tainted by fraud; or at the least, can raise a colorable claim of fraud.

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.

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.

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.