Schulte Roth & Zabel has made a continued commitment to 919 Third Ave., signing a large renewal with SL Green Realty Corp.
Schulte Roth & Zabel has made a continued commitment to 919 Third Ave., signing a large renewal with SL Green Realty Corp.
In their Real Estate Litigation column, Todd Soloway, Joshua Bernstein and Eric Dowell discuss the "Rule of Definiteness" in real estate contracts and write: This "definiteness" requirement is among the oldest in contract law but often is forgotten in a time where the pace of transactions and client pressure to "get the deal done" necessitates that certain terms be left open.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews 'Southampton Day Camp Realty v. Gormon,' where a SLAPP suit was dismissed; 'Vivir of Li v. Ehrenkranz,' dealing with piercing the corporate veil; and 'Jamaica Seven v. Jean,' a landlord-tenant case where the court found a discounted rent provision in a lease unenforceable.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews “3660 Oxford Ave Assoc. v. Ambrosini,” that dealt with a 90-year-old-tenant’s claim of violations for warranty of habitability; and “MG West 100 v. St. Michael’s Church,” where the court voided a contract for the sale of real property owned by the church due to the failure of the church to obtain consent from the bishop.
While retaining majority interest in three high-profile office buildings, Boston Properties Inc. has announced an agreement to sell a 45 percent interest in 601 Lexington Ave., at East 53rd Street in Manhattan, along with two other office buildings in Boston. Also, Elite SEM has signed a seven-year lease at 142 W. 36 St.
In their Taxation column, Ezra Dyckman and Daniel W. Stahl of Roberts & Holland discuss the case 'Allen v. United States,' and write: "The fact that a taxpayer acquires real property with the intention of developing it does not by itself mean that an ultimate sale of the real property will result in ordinary income." For the taxpayer in 'Allen,' however, it did.
In their Transactional Real Estate column, Peter E. Fisch and Ira J. Gilbert of Paul, Weiss, Rifkind, Wharton & Garrison discuss the tax implications when buyers who purchase adjacent condominium units combine them into a single unit.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews three landlord/tenant decisions: “Gold Street Properties v. Freeman,” “2976 Marion v. University Consultation Center,” and “Matter of PWV Acquisition v. Towns.”
The Savanna Fund recently closed on the sale of 80 Broad St. to Broad Street Development for $173 million. Also, Town Sports International Holdings Inc., the operator of New York Sports Clubs, has closed on the sale of a commercial property to an affiliate of Stillman Development International and Ceruzzi Properties for $85.5 million.
In their Broker Fee Regulations column, Adam Leitman Bailey and Jeffrey R. Metz discuss 'SPRE Realty v. Dienst' which the authors describe as "a thoughtful decision authored by Justice Rolando Acosta which clarified the guidelines for earning a real estate broker's commission in Manhattan and the Bronx."
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews two cases: 'Rural Community Coalition v. Village of Bloomingburg,' where an injunction to stop a townhouse development was denied due to a seven-year delay in challenging the annexation, and 'Zalewski v. Cicero Builder Dev.' where the court dismissed the plaintiffs copyright infringement claim on architectual designs.
In an international deal involving more than 50 attorneys, Hilton Worldwide Holdings Inc. has announced it has entered into an agreement to sell its flagship hotel, the Waldorf Astoria New York, to Beijing-based Anbang Insurance Group Co. Ltd. for $1.95 billion. Hilton Worldwide will continue to manage the legendary 47-story hotel at 301 Park Ave. for the next 100 years.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews two cases: 'LaVertu v. The Town of Huntington,' where the court was faced with a town that allegedly retaliated against plaintiffs after plaintiffs released a YouTube video opposing the town’s proposed housing project; and 'Walden Gardens v. Burns,' where the court ruled against residential use limitation - on public policy grounds—and held that the tenant in the case may operate a licensed day care center in her co-op.
In their Landlord-Tenant column, Warren A. Estis and Michael E. Feinstein of Rosenberg & Estis discuss the chronic non-payment holdover proceeding - a landlord's best weapon when faced with having to commence multiple non-payment proceedings against defaulting tenants. They note, however, that if the tenant asserts a valid defense to non-payment, the court may very well conclude that a substantial obligation of the tenancy has not been breached.
Nearly tripling the size of its New York City presence, Squarespace has leased 100,000 square feet at 225 Varick St., between W. Houston and Clarkston streets, as the site of its new headquarters. Also, Cushman & Wakefield has signed a 10-year lease with The Durst Organization for a portion of the 45th floor at One World Trade Center.
With designs on a new downtown location, engineering firm AKF Group LLC has signed a 15-year lease with Brookfield Office Properties for its New York City office at One Liberty Plaza. Also, technology company BetterCloud has signed a 10-year lease for 12,500 square feet at 330 Seventh Ave., between 28th and 29th streets.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews two cases: ‘Windsor Plaza v. Pinies,’ where the court ordered a tenant to submit to an independent medical examination when he put his medical condition at issue to explain his absence from the apartment, and ‘Matter of Hernandez v. NYCHA,’ where the court annulled a tenant’s termination of her lease based on NYCHA’s violation of its own internal procedures.
In his Zoning and Land Use Planning column, Anthony S. Guardino, of Farrell Fritz, discusses why satisfying the three-part test for an implied easement often proves to be difficult.
In their financing column, Joshua S. Sohn and John Dodson of DLA Piper write: Eminent domain in New York carries with it an unavoidable degree of uncertainty for condemnors and condemnees, but prudent mortgage lenders have the ability to significantly mitigate—if not altogether eliminate—the risk of condemnation of mortgaged properties having much, if any, effect on loan repayment.
In an effort to maximize efficiency, Paul Hastings has plans for its New York City office involving a move to the MetLife Building at 200 Park Ave. in early 2016. Also, London-based UBM plc, a global media and communication services company, has signed a 10-year lease with Vornado Realty Trust for 26,444 square feet at Two Penn Plaza for a new Americas headquarters.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews ‘Lambert Houses Redevelopment v. Jobi,’ where a landlords action against a Section 8 tenant for nonpayment was dismissed for failure to comply with HUD notice requirements, and ‘Board of Managers of Cathedral Tower Condominium v. Sendar Assoc,’ where a plaintiff condominium board claimed the sponsor of the condominium had underfunded the condo’s reserve fund.
In his Construction Law column, Kenneth M. Block discusses the nature of consequential damages in construction contracts and the implications of waving them.
The Neiman Marcus Group Inc. has signed a lease for 250,000 square feet for the creation of a three-level Neiman Marcus anchor store at The Shops of Hudson Yards, a 1-million-square-foot retail center under construction on Manhattan's far West Side.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews "SPRE Realty, Ltd. v. Dienst, " which provided a test for determining whether a broker was the "procuring cause" of a real estate transaction, and therefore entitled to commission.
Australia-based Servcorp, an international executive suites and virtual office provider, will be opening its fourth location in Manhattan at One World Trade Center.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews ‘Matter of Russo v. NYCHA,’ involving NYCHA succession policies, and ‘Matter of Thompson Corners, v. New York State Department of Environmental Conservation,’ where it was held that the subsequent owner of a hazardous waste storage facility was not obligated to provide financial assurance for ongoing remedial action.
In their Rent Stabilization column, Warren A. Estis and Jeffrey Turkel of Rosenberg & Estis discuss the current landscape of owner occupancy proceedings since the 2008 case ‘Pultz v. Economakis,' and write: Notwithstanding a small number of owners who have attempted to vacate entire buildings, the flood of “mass eviction” owner occupancy proceedings, feared in the wake of ‘Pultz,’ has not materialized.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews '275-277 Realty v. Lawrence-Harris,' where the court vacated a stipulation of settlement, 'Parkash 242 LLC v. Gyan,' involving a minor signing a lease, and 'North-Driggs Holdings v. Burstiner,' which dealt with with timing issues surrounding a rent stabilized apartment.
Cohen Rabin Stine Schumann, a full-service family law firm, has signed a 10-year lease with SJP Properties Inc. at 11 Times Square. Also, New York REIT Inc. has acquired 245-249 W. 17th St. from The Savanna Fund for $335 million.
In their Taxation column, Ezra Dyckman and Daniel W. Stahl of Roberts & Holland discuss the Treasury Department's proposed partnership regulations which, if implemented, would have a profound impact on many partners by radically shifting partnership debt allocations.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews "184-188 Claremont Investors v. Nelson," where a landlord was awarded judgment of possession after a jury found the tenant was not using his apartment as his primary residence, and "Gordon v. 476 Broadway Realty," where the court upheld a co-op board’s decision to terminate a proprietary lease.
In their Hospitality Litigation column, Todd E. Soloway, Joshua D. Bernstein and Jared D. Newman of Pryor Cashman discuss the the extent of a hotel company's liability to guests whose personal information was stolen, given the increasing sophistication of computer hackers and their ability to infiltrate even the best designed data security systems.
Ballard Spahr Stillman & Friedman will be moving its office to 919 Third Ave. Also, SoHo Properties Inc. has recently acquired 49-51 Park Place, the location of a proposed Islamic cultural center and mosque in Lower Manhattan.
Empire Outlets, New York City's first retail outlet complex that is being constructed in the St. George neighborhood of Staten Island, has signed a lease with Seattle-based Nordstrom Inc. to open a Nordstrom Rack. Also, international advertising company Rocket Fuel Inc. has relocated its New York City office a short distance to 100 W. 33rd St.
In their Licensing Law column, Adam Leitman Bailey and John M. Desiderio of Adam Leitman Bailey, P.C., write: In February of this year, in "Union Square Park Community Coalition, v. New York City Department of Parks and Recreation," the New York Court of Appeals appears to have redefined and narrowed the limits of what distinguishes a license from a lease by expanding the scope of what may be deemed a license.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews three cases: “In re September 11 Litigation," where a real estate developer sued the owners and lessees of the World Trade Center and the owners of the airplanes that crashed into it, under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), “Kerem Realty v. Hussein,” where a landlord commenced a chronic non-payment holdover proceeding against a rent stabilized tenant, and “Ortiz v. New York City Housing Authority,” where the petitioner sought to annul a determination by a NYC Housing Authority hearing officer, which denied the petitioner succession rights to the apartment of her late mother.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews two cases: ‘1414 Holdings, LLC v. BMS-PSO,’ where the court held that a landlord was not permitted to engage in self-help eviction if it was not authorized by the lease, and ‘AAR Allen Services v. Feil 747 Zeckendorf Blvd,’ where the court found that a tenant’s right of first refusal to purchase property was not triggered when an alleged third party acting as a “straw” purchaser submitted an offer to purchase.
In their Landlord-Tenant column, Warren A. Estis and Michael E. Feinstein of Rosenberg & Estis discuss the issue of allowing day care facilities to be operated in residential buildings, and write: Bronx County has now ruled, as a matter of public policy, that restrictive covenants in proprietary leases limiting occupancy to residential use are unenforceable with respect to the operation of a licensed “group family day care home.”
Growing in size and services, general service law firm Bond Schoeneck & King has relocated its New York City office a short distance to 600 Third Ave. from 330 Madison Ave. Also, Samsung Electronics North America has announced the creation of a Manhattan flagship office at 837 Washington St.
MediaMath will be moving its headquarters downtown to 4 World Trade Center. The global technology firm has signed a 15-year lease with Silverstein Properties Inc. for 106,000 square feet.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews three cases: “Matter of Board of Managers of the Plaza Condominium v. The New York City Dept. of Transportation,” where the city's placement of a Citibank bike share station across from The Plaza Hotel was upheld, “Supreme Co. I, v. Moylan,” where a summary proceeding based on nuisance relating to bed bug infestation was dismissed, and “MKC-S v. Laura Realty,” where it was held that a foreign corporation was "doing business" by "acting as a sub-landlord.
In their Rent Regulation column, Adam Leitman Bailey and Dov Treiman of Adam Leitman Bailey, P.C., discuss the legal recognition of non-traditional relatives of the tenant of record for purposes of succession to a regulated tenancy.
In his Zoning and Land Use Planning column, Anthony S. Guardino of Farrell Fritz, discusses how the New York State Court of Appeals has upheld the ability of towns to use their zoning laws to ban fracking.
BNY Mellon, a corporate brand of The Bank of New York Mellon Corporation, will be moving its world headquarters to Brookfield Place from 1 Wall St. Also, boutique law firms Katz Melinger and W.R. Samuels Law have combined forces at 280 Madison Ave.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews two cases: ‘Rosenblum v. Corcoran Group Eastside,’ where fraud and negligent misrepresentation claims against a listing broker were dismissed with the court holding that the doctrine of Caveat Emptor applies to both sellers and their brokers, and ‘Bibi Lieberman 1999 Revocable Trust v. The City of New York,” a land use case where a NYC Board of Standards and Appeals’ determination that an owner had demonstrated his right to complete construction pursuant to the Vested Rights Doctrine was upheld.
In his Foreclosure Litigation column, Bruce Bergman writes: Abetted by the ongoing economic distress and the glacially slow pace of home loan foreclosures in the Empire State, the continuing substantial volume of such cases has begotten a contentious clash between foreclosing mortgagees and condominiums holding common charge liens.
Varonis Systems Inc. is expanding its worldwide headquarters at a Jamestown property at 1250 Broadway, between W. 31st and W. 32nd streets. Also, Uber, a tech-based global transportation business, has leased 52,350 square feet at 636-638 W. 28th St.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews 'Matter of Billmyer,' where the court charged the executor of a Brooklyn brownstone a $630,000 surcharge plus interest for breach of his fiduciary duty to his beneficiaries for selling the property at grossly below its fair market value.
In their Transactional Real Estate column, Mitchell L. Berg, Andrew Wurzburger and Philip A. Heimowitz of Paul, Weiss, Rifkind, Wharton & Garrison write: A sponsor that intends to raise capital from third-party investors for investment in real estate or real estate-related assets should consider whether the general partner, managing member or outside adviser to the vehicle that will be formed to undertake the investment will be required to register as an investment adviser under, and comply with the other requirements of, the Investment Advisers Act.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews three cases: 'Fulton Street South Redevelopment v. James,' where the court stayed an illegal use holdover proceeding pending completion of the underlying criminal action, '67-15 102nd Street v. Whitman-Gross,' a landlord-tenant case where the - Appellate Term held that an illegal subtenant is not responsible for the landlord’s legal fees, and 'Caraballo v. The Art Students League of N.Y.,' where the court denied a plaintiffs’ request for a preliminary injunction which would have stopped a nonprofit from closing on a proposed sale of air rights to a developer.
It's been a busy leasing season at 26 Broadway, which has attracted several new tenants and had a number of recent renewals. One tenant, the law firm of Gladstein Keane & Flomenhaft, will more than double the size of its offices when it moves into permanent space after a temporary post-Sandy stint there.
In their Rent Regulation column, Warren A. Estis and Jeffrey Turkel discuss a recent ruling that buildings converted on or after Jan. 1, 1974 from commercial to residential use are exempt from rent stabilization, even if the owner has not satisfied all of the substantial rehabilitation requirements.
Expanding its presence in upstate New York, Albany-based law firm Tully Rinckey has moved its Buffalo office to 5488 Sheridan Dr. from 70 Niagara St., where it was a tenant for the past 18 months.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews ‘Landesbank Baden-Württemberg v. RBS Holdings,’ where the purchaser of a residential mortgage-backed securities sued claiming fraud, negligent misrepresentation, aiding and abetting a fraud, and rescission; and ‘OLR, MM, L.P. v. Bracero,’ a landlord-tenant case where a rent stabilized tenant must certify her household income to her landlord because the landlord receives federal low-income housing tax credits.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews “Board of Managers of the Sevenberry Condominium v. N7B,” where the court dismissed claims against a condominiums architect and engineer holding: “The statements at issue in the report...do not constitute material affirmative misrepresentations that would support a common-law claim that is not entirely dependent on the Martin Act for its viability.”
Upscale retailers Lexus and M·A·C Cosmetics will be opening new locations along 14th Street. Lexus, a division of Toyota, has a lease with Thor Equities, for 15,000 square feet at 412 W. 14th St. Several blocks east, M·A·C Cosmetics will open a new store at 853 Broadway at 14th Street.
In their Taxation column, Ezra Dyckman and Libin Zhang of Roberts & Holland discuss the "Frank Aragona Trust" case—the first authority that has held that a trust can be a real estate professional and can therefore generate non-passive income and losses from its rental real properties. The authors explain that the holding is limited to the taxation of non-grantor complex trusts, but such trusts may benefit substantially with some proper structuring and designation of trustees.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews three landlord-tenant cases: “G&L Holding Corp. v. JR Gonzalez,” which held that tenants do not forfeit their residence status due to a temporary absence, even where the temporary absence is attributable to incarceration, and “217 Malcolm X Blvd v. Naughton Bros. Funeral Home, a commercial landlord-tenant case where a tenant was granted a dismissal because the landlord’s petition only partially described the premises to be recovered, and “In re Mary Encarnacion Grant v. NYCHA,” where a NYC Housing Authority’s termination of a tenancy was upheld.
In his Construction Law column, Kenneth M. Block of Tannenbaum Helpern Syracuse & Hirschtritt addresses the issues raised with demolition and new construction on sites previously occupied by a building sharing a party wall with its neighbor.
RXR Realty has closed on the deal to acquire 61 Broadway for $330 million, after being in contract for about two months. Also, Delshah Capital has purchased an office building at 221 W. 17th St. for $26.4 million.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews 'Board of Managers of 550 Grand Street Condominium v. Schlegel,' where the court found that negligence claims against an architect were time-barred.
In their Co-ops and Condominiums column, Adam Leitman Bailey and John M. Desiderio of Adam Leitman Bailey, P.C. discuss several recent cases that show how New York courts give deference to the actions of co-op and condo boards wherever it is clear that the boards have acted within the scope of their authority and in good faith in the interests of their shareholders, unit owners, and their buildings.
Atlanta-based law firms Troutman Sanders and Hawkins Parnell Thackston & Young both found midtown Manhattan to be the ideal location for their New York City offices.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews three Landlord tenant cases: “418 West 130th Street. v. Rawlings,” a rent stabilization case, “Sixth Avenue Terrace v. Langley,” involving a summary no-payment proceeding, and “Santiago-Monteverde v. Pereira,” which asked the question “May a rent-stabilized tenant prevent the assumption and assignment of his or her lease by claiming that the lease (or its value) is a ‘local public assistance benefit’ exempt from the bankruptcy estate?”
In their Landlord/Tenant column, Warren A. Estis and Michael E. Feinstein of Rosenberg & Estis discuss "Kaplan v. Park South Tenants Corp," where the court issued an injunction enjoining a co-op from interfering with a tenant's alterations.
With a focus on growth and new opportunities, KiDS, a creative branding ad agency, has signed a 15-year lease at One World Trade Center. Also, New York University Hospitals Center has acquired SL Green Realty Corp.'s leasehold interest in 673 Third Ave. for $145 million.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews "Bennett v. Towers" in which a judge fined an attorney $10,000 for filing SLAPP lawsuit, and "Kellner v. U.S. Army Corp of Engineers," a land use case where the court denied injunctive relief to stop the city from proceeding with demolition work.
In his Zoning and Land Use Planning column, Anthony S. Guardino of Farrell Fritz writes: As the economy improves, more developers are seeking to complete projects that had been approved but that they had not constructed. What happens if applicable zoning laws have changed in the meantime?
Time Inc. has signed a 15-year lease for 700,000 square feet with Brookfield Office Properties at 225 Liberty St. in lower Manhattan as the location for its new corporate headquarters. It will be leaving 1271 Avenue of the Americas, the Time & Life Building, where it has been since 1959.
In their Financing column, Jason R. Goldstein and Joshua Sohn of DLA Piper discuss the legal protections and risks afforded by representations in complex loan agreements and any related qualifications in transactional matters.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews two cases: ‘1855 7 Ave. Housing Dev. Fund v. Wigfal’, where a co-op’s board of directors’ termination of a proprietary lease was upheld, and ‘34th Street Penn Asso, v. Payless Shoesource’, a commercial landlord-tenant case where the tenant was entitled to a 50 percent rent abatement because “opening conditions” had not occurred, as per the lease.
In one of the largest Brooklyn rental deals in a decade, global e-commerce website Etsy has signed a 10-year lease for the entire nine-story building at 117 Adams St. as well as the sixth floor in an adjacent building at 55 Prospect St.
In their Transactional Real Estate column, Peter Fisch and Salvatore Gogliormella outline some of the key features that are negotiated as part of senior housing management agreements—fee structures, operational and physical standards, performance tests and territorial restrictions—and the manner in which they are sometimes addressed.
A joint venture of Savanna and KBS Capital Advisors has acquired 110 William St. from Swig Equities and Dubai Investment Group for $261.1 million. Also, retail real estate firm RKF has expanded its midtown New York City headquarters at 521 Fifth Ave.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews 'Saccheri v. Cathedral Properties,' dealing with a damage claim in a wrongful eviction case which was dismissed due to lack of authority to award legal fees, and "420 W 206th Street Owners Corp. v. Lorick," a co-op case involving the rights and obligations of the holder of unsold shares.
In their Rent Regulation column, Warren A. Estis and Jeffrey Turkel write: One might imagine that it is a simple matter to determine how many dwelling units a building has. Nothing in the rent regulation, however, is a simple matter.
Scott E. Mollen reviews landlord tenant cases, one involving attorney fees and the reciprocal mandate of RPL §234 in a holdover proceeding, and another where a chronic rent delinquency holdover proceeding was dismissed.
In one of the larger leases along Sixth Avenue this year, Neuberger Berman has signed a 20-year agreement with Vornado Realty Trust for about 355,000 square feet at 1290 Avenue of the Americas.