In their Financing column, Jeffrey B. Steiner and Jason R. Goldstein of DLA Piper discuss the various approaches by which a lender can secure an interest in a letter of credit held by a borrower on account of a tenant security deposit.
In their Financing column, Jeffrey B. Steiner and Jason R. Goldstein of DLA Piper discuss the various approaches by which a lender can secure an interest in a letter of credit held by a borrower on account of a tenant security deposit.
Scott E. Mollen reviews 'Countrywide Home Loans v. Crespo,' where the court found circumstances showed no intent by plaintiff to abandon his foreclosure action; and '2420 Webster Ave v. Jones,' where the landlord failed to meet its burden to show the tenant surrendered her rent-controlled apartment.
Expanding its portfolio with the addition of a luxury hotel, the joint venture of Deka Immobilien Investment GmbH and Ashkenzay Acquisition Corporation has closed on the acquisition of the Marriott New York East Side for $270 million. Also, national real estate firm Madison Marquette recently relocated to 40 E. 52nd St.
In his Foreclosure Litigation column, Bruce Bergman writes: It is not so infrequent that a foreclosing lender or servicer finally arrives at the foreclosure judgment stage and then holds in place. A few weeks or months of inaction is not meaningful. But what about a year, or two, or much more? Although it seems unlikely, it does happen.
R XR Realty LLC has acquired 230 Park Ave., also known as the Helmsley Building, for $1.2 billion. Also, Thor Equities has expanded its NoHo portfolio with the acquisition of a retail condominium at 50 Bond St. for $11 million.
Scott E. Mollen reviews 'Thor 725 8th Avenue v. Goonetilleke,' where the payment of rent was not excused by constructive eviction; '518 West 184th Street v. Guzman,' where a lawyer's defaults and delays were held to have caused the public unnecessary expense; 'In re Mary Veronica Santiago-Monteverde v. Pereira,' where a rent-stabilized lease was held exempt from a debtor's bankruptcy, and more.
In one of the year's largest real estate deals, Skadden Arps is on course to be the anchor tenant at One Manhattan West, the first of two commercial towers being proposed in the Hudson Yards district.
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: 'Conason v. Megan Holding,' 'GDA Realty v. Puello,' and 'Supportive Slope v. Baxter.'
In their Rent Regulation column, Warren A. Estis and Jeffrey Turkel state that it is no secret that some rent-regulated tenants, whether through Airbnb or some other platform, are profiteering from their apartments and discuss existing case law to help determine when such conduct is curable, or when the offending tenant can be evicted.
Todd E. Soloway and Joshua D. Bernstein discuss the legal landscape over the debate concerning whether and in what circumstances to allow transient short-term rentals of apartments in New York City.
Scott E. Mollen reviews '230 Park Ave. Holdco v. Kurzman Karelsen & Frank', where there was an issue of fact as to whether the landlord interfered with the tenant's right to assign or sublet; 'Newman v. Federal National Mortgage Assoc.', where a co-op owner was granted a stay of eviction pending the resolution of a foreclosure action, and '665-675 Apartment Corp. v. Verdeschi', where a landlord's suit to terminate the tenant's proprietary lease for violation of the rules was dismissed.
Bloomberg LP has agreed to lease 254,556 square feet at 919 Third Ave. Also, Adobe Systems Inc. has signed a 10-year lease for nearly 30,644 square feet at 100-104 Fifth Ave. in Union Square.
Scott E. Mollen reviews 'Brookford v. Penraat,' where a rent-controlled tenant was found to be Airbnb 'profiteering'; and 'Jewish People for the Betterment of Westhampton Beach v. The Village of Westhampton Beach,' where the Second Circuit ruled in favor of the defendants in allowing Eruv markers on the town's utility poles.
The Cochran Firm, which was founded more than 40 years ago in Los Angeles by high-profile attorney Johnnie Cochran, who died in 2005, is moving its Manhattan offices further downtown to 55 Broadway. Also, relocating its New York City showroom, Herman Miller Inc. has signed a 15-year lease at 251 Park Ave. South.
Ezra Dyckman and Libin Zhang discuss the Tangible Property Regulations, which established new rules on what expenses may be immediately deducted and what must be capitalized and depreciated over time, and address several issues on how owners of real property may use the regulations in practical terms.
Buying a chunk of Brooklyn real estate, a joint venture of ASB Real Estate Investments and L3 Capital LLC has acquired a 17-property portfolio in Williamsburg from the estate of Ulla Lee for more than $85.75 million. The properties, which include about a dozen buildings and several parcels of land, span a two-block area between N. 6th and N. 7th streets, from Berry Street to Kent Avenue.
Bruce J. Bergman writes: It seems an incongruous notion: starting or completing a foreclosure action after taking a deed-in-lieu of foreclosure. But it can be done and sometimes it may be imperative to do so.
Scott E. Mollen reviews '326 East 85 Realty v. Hairy Monk Corp.,' where the court held that a clause requiring a $500-per-day late fee constitutes a penalty and is therefore unenforceable; 'Centech v. Yippie Holdings,' where a right of first refusal was not triggered upon a sale of foreclosure by a referee; and 'Loudon House v. Town of Colonie,' where it was held that a town board acted arbitrarily in enacting a local law.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews 'W&G Wines v. Golden Chariot Holdings,' where a tenant was granted a 'Yellowstone' injunction pending an evidentiary hearing on certain allegations; and 'Aurora Loan Services v. Diakite,' where the court concluded that the plaintiff failed to negotiate in good faith, resulting in a stay of all interest and costs.
In their Ownership Rights column, Adam Leitman Bailey and Dov Treiman aim at educating the practitioner on the not-so-obvious rules of the party wall.
Thor Equities has purchased 98 Morningside Ave., a 48-unit residential property in Harlem, for $21.63 million.
Making a big return to its namesake, MetLife Inc. is consolidating several of its New York City offices to the MetLife Building at 200 Park Ave. Also, OnDeck Capital Inc. is more than doubling the size of its headquarters at 1400 Broadway.
Warren A. Estis and Michael E. Feinstein discuss the recent case 'Graham Court Owner's Corp. v. Taylor,' where the Court of Appeals held that the lease provision at issue invoked the reciprocal mandate of Real Property Law Section 234.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “208 Avenue a Assoc. v. Calanni,” where it was held that counsel was 'clothed with apparent authority' to enter into stipulation; and “Lyo v. Bank of America,’ where an owner was held entitled to a trial period for modification of loan; and 'Federal Housing Finance Agency v. Nomura Holding America,' which dealt with alleged material misstatements or omissions with respect to sale of residential mortgage-backed securities.
An affiliate of Quinlan Development Group, in a joint venture with Building & Land Technology, recently closed on the acquisition of 41 Flatbush Ave. for $89.4 million. Also, ClearSlide Inc. has signed a four-year lease with Tishman Speyer Properties at 183 Madison Ave. for nearly 10,000 square feet.
In his Zoning and Land Use Planning article, Anthony Guardino explains how the requirements under the State Environmental Quality Review Act are not necessarily over when a site plan is approved. In many instances, applicable regulations and court decisions mandate preparation of a supplemental environmental impact statement before work on a project can begin, or continue.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Heights Properties 1388 v. Make Realty,” where the court ruled that a corporation’s bylaws prohibited the secretary from executing contracts for the sale of property and held the sales contact invalid, and “New York City Housing Authority v. Feliciano, where a tenant was awarded 100 percent rent abatement for the Housing Authority’s failure to correct violations occurring after Hurricane Sandy.
Dolce & Gabbana has designs on 155 Mercer St. for the opening of a new store in SoHo, between West Houston and Prince streets. Also, Vodafone Group, one of the world's largest telecommunication companies, has doubled the size of its office at 560 Lexington Ave.
In their Financing column, Jeffrey B. Steiner and Jason R. Goldstein discuss limiting the scope of a guarantor's liability upon a mortgage lender's exercise of remedies and offer a sample provision drafted in a manner that in many circumstances will render it acceptable to a commercial real estate mortgage lender.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “The Board of Managers of 266 West 115th Street Condominium v. 266 West 115th Street,” where the court held that triable issues precluded dismissal of contract breach claim but that alter ego claim was maintainable, and “Merry-Go-Round v. City of Auburn,” where it was held that a theater group was entitled to tax exemption status on apartment buildings it used to house actors.
Mayer Brown has relocated its New York City offices to 1221 Avenue of the Americas in Rockefeller Center, after nearly 20 years at 1675 Broadway. Also, Media General Inc. has leased the entire 62nd floor of the landmark Empire State Building
In their Construction Law column, Kenneth M. Block and Joshua M. Levy write: Since the exceptions to the no-damages-for-delay clause expose the developer to liability for a broad array of contractor-incurred damages, a properly crafted exculpatory clause and attention to the project-specific factors that could lead to delay are critical parts of any construction contract.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “201 W. 89th Owners v. Mostel,” where the court found in favor of a cigarette-smoking tenant, holding that subjective testimony as to the odor was insufficient to demonstrate violation of the lease, and “Parkchester Preservation Co. v. Randolph,” where it was held that a premises' owner waived its right to enforce a lease provision prohibiting dogs on the property after the dog’s presence was found to be open and notorious.
The law firm of Trolman, Glaser & Lichtman has found office space in a new building—but with the same landlord it has had for the past 15 years. Also, OSP Group is on course to relocate to downtown Manhattan, opening its online virtual retail venue at One New York Plaza, at South and Whitehall streets.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “42nd and 10th Assoc. v. Ikezi ,” where the court held that using a residential apartment as a hotel room and profiteering off of it is ground for eviction and is incurable, as it undermines a purpose of the Rent Stabilization Code, and “Borden v. 400 East 55th Street Associates,” where the court pointed the way for classes to challenge rent overcharges.
In their Rent Stabilization Column, Warren A. Estis and Jeffrey Turkel write: The Court of Appeals' Feb. 24, 2015 ruling in 'Conason v. Megan Holding' constitutes the high court's latest attempt to clarify the four-year rule, and features a spirited dissent by Judge Eugene F. Pigott.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews ‘Matter of Mary Veronica Santiago-Monteverde’, where the New York Court of Appeals held that a tenant's interest in her rent-stabilized lease was a ‘public assistance benefit,’ and thus exempt from her bankruptcy estate; and ‘56 7th Avenue, LLC v. Sobel,’ where it was held that a tenant's absence from his apartment for health reasons, was excusable.
In their Taxation column, Ezra Dyckman and Libin Zhang discuss recent guidance from the Internal Revenue Service as to who qualifies as a real estate professional.
In the second most-expensive office building deal in U.S. history, a joint venture of Ivanhoe Cambridge and Callahan Capital Properties has purchased 1095 Avenue of the Americas for $2.2 billion. Also, Silverstein Properties has acquired a property at 520-530 W. 41st St. for more than $100 million.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Commerce Street Professional Center, LLC v. Connolly,” where the court held that a guarantor cannot be exposed to a greater obligation than he intended or consented to, and “Board of Managers of the 125 North 10th Condominium v. 125 North 10, LLC,” where it was held that a building’s managing agent was not responsible for the building's 'defective' design and construction.
In their Transactional Real Estate column, Peter E. Fisch and Mitchell L. Berg write: Over the last several years, sale-leasebacks have been implemented with increasing frequency, perhaps driven in part by a proliferation of real estate investment trusts and other institutional buyers seeking the stable returns these transactions provide.
Relocating its corporate headquarters to Philadelphia, the American Bible Society, a longtime institution at 1865 Broadway, has sold its West Side property for $300 million to AvalonBay Communities Inc. Also, Extell Development Company has relinquished the reins of 212 Fifth Ave. to the joint venture of Madison Equities, Building and Land Technology, and Thor Equities for $260 million.
Adam Leitman Bailey and Jeffrey R. Metz write: "Between 2009 and 2012, a total of 117 rental buildings in Manhattan and Brooklyn were converted to cooperative or condominium ownership. Many of the units contained therein were deregulated." The article then explores what rights the tenants of these units have vis-à-vis rent-regulated tenants when a building is being converted, and the effect of leasing units at fair-market rents both before and after a conversion.
Paris-based Publicis Groupe, one of the world's leading media firms, is expanding its New York City operations at 1675 Broadway. Also, digital advertising and media management software developer Centro Inc. has signed a lease with The Feil Organization for 26,235 square feet at 841 Broadway.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “US Bank Natl. Assoc. v. Williams,” where the Appellate Division addressed remedies for a lenders’ failure to act in good faith during foreclosure settlement conferences, and “Green Tree Servicing v. Christodoulakis,” where a borrower used proceeds from an unrecorded mortgage to satisfy a recorded mortgage, prompting a court ordered attachment and a finding that unjust enrichment does not require a finding of wrongdoing.
In their Landlord-Tenant column, Warren A. Estis and Michael E. Feinstein of Rosenberg & Estis, discuss the First Department Appellate Division's ruling in "251 CPW Housing v. Pastreich," where the court rejected the Appellate Term's "colorable claim" standard as a basis for denying attorney fees.
Scott E. Mollen reviews "LIDC I v. Sunrise Mall," where a Yellowstone injunction was denied when mall tenants failed to show an ability to cure their default, "Newport Gardens v. McCoy," where the court found the allocution of an illiterate pro se tenant was far below the minimum level rendering her signed stipulation unjust, and more.
Washington, D.C.-based litigation firm Zuckerman Spaeder has completed the final touches to its new midtown Manhattan offices at 399 Park Ave. Also, one of the country's largest accounting firms, CohnReznick LLP, has signed a long-term lease for a new location for its national headquarters.
In his Zoning and Land Use Planning column, Anthony Guardino discusses how a decision by the Appellate Division, Second Department, rejecting a property owner’s bid to overturn an agency’s declaration requiring that it prepare a draft environmental impact statement, conflicts with an established opinion by New York’s highest court.
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 South Star v. WSA Equities’, where the complaint at issue failed to allege a relationship between condo unit owners and sponsors; and ‘In re Glick v. Harvey,’ where NYU won a bid for a $6 billion Greenwich Village expansion; and ‘Pickerell v. The Town of Huntington,’ where a zoning board of appeals failed to comply with SEQRA in granting a permit for a 7-Eleven.
Sephora USA LLC has signed a long-term lease with Empire State Realty Trust Inc. for the opening of a new store at 112 W. 34th St., across from Macy's flagship store.
Jeffrey B. Steiner and Jason R. Goldstein of DLA Piper review the different categories of misrepresentation cited by New York courts and draw distinctions between seemingly innocent statements in loan documents as opposed to circumstances where a representing party knew or should have known that their representation was untrue.
Transforming its office space and gaining a better view, Kirkland & Ellis has signed a 20-year lease extension for its headquarters to remain at 601 Lexington Ave., while Mintz & Gold has increased its office space with a move to 600 Third Ave.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Saint-Jean v. Emigrant Mortgage Co,” where the plaintiff’s claim that a lender's 'No Income, No Asset' program was an asset-stripping scheme survived dismissal, and “NMF Holdings v. First Quality Properties III,” where the court held that the seller was not contractually obligated to remove a declaration of covenants and restrictions for ground water management from the contract.
In their Hospitality Litigation column, Todd E. Soloway and Joshua D. Bernstein examine the structure of common indemnification provisions in hotel management agreements and what a hotel owner must be cognizant of before agreeing to this potentially burdensome additional financial obligation.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Shearin v. Back on Track Group,” where the court held in an illegal lockout proceeding that the petitioner in the case was a tenant rather than a licensee of a temporary “program house,” and “WRG Acquisition v. Strasser,” a landlord-tenant case where the respondent/brother was estopped from presenting two inconsistent positions in order to gain succession rights to his elderly sisters apartment.
With plans under way for a new facility, United Cerebral Palsy of New York City Inc. has closed on the sale of its Midtown South office building for $135 million.
In their Rent Regulation column, Warren A. Estis and Jeffrey Turkel discuss how the Court of Appeals now allows class actions for New York City tenants bringing J-51 rent overcharge lawsuits.
Lowe's, the national home improvement retailer, will be taking up residence in Chelsea in 2015 after signing a 15-year lease with SL Green Realty Corp. to open a flagship store. In an unrelated deal, SL Green Realty Corp. has also signed a new retail lease in midtown with Equinox Holdings Inc., which operates 23 upscale fitness and well-being clubs in New York City.
Scott E. Mollen reviews "Estate of Helen Del Terzo v. 33 Fifth Avenue Owners Corp.," where the court overturned a co-op board's rejection of a shareholder's sons' application to succeed to their mother's apartment, and "M. M. & I. Realty v. Gargano," a landlord-tenant case where it was held that the spouse of a rent-controlled tenant does not become a tenant upon her marriage to and cohabitation with the tenant.
Adam Leitman Bailey and Dov Treiman write: The importance of liquidated damages clauses are two-fold: They make the tenant think twice before breaching the lease or overstaying it, thus reducing the traffic in landlord-tenant court; and they allow the landlord an award of its full damages as it envisioned them at the time of the writing of the lease.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews "Brardo v. American Hope Group," in which the court dealt with an alleged fraudulent foreclosure rescue scheme, and "Ferby v. Jonero," a commercial landlord-tenant case involving the eviction of a residential tenant occupying a commercial space.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews two cases: “New York State Division of Human Rights v. 111 East 88th Partners,” where the plaintiff failed to provide evidence of present impairment to justify a “support dog,” and "Beekman Delameter Properties v. Village of Rhinebeck Zoning Board of Appeals," where the extension of a Zoning Board of Appeals' variance was nullified.
The New York City Economic Development Corporation, Manufacture New York and Salmar Properties have jointly announced plans to develop the Manufacturing Innovation Hub at Liberty View Industrial Plaza, in Brooklyn.
In their Taxation column, Ezra Dyckman and Libin Zhang address some noteworthy changes that affect owners of real property in the wake of the Department of the Treasury finalizing new regulations in 2013 and 2014 that will dramatically affect the income taxation of such property owners as well as other businesses.
In his Foreclosure Litigation column, Bruce J. Bergman discusses the Kafkaesque scenario when a mortgage foreclosure can beget a negligence action.
Rosenberg & Estis has acted on its real estate expertise with the expansion of its offices at 733 Third Ave. The firm, which has grown to 70 attorneys from 45 in 2012, renewed its lease for existing footage of 30,522 square feet, the entire 12th and 14th floors; plus expansion footage of the entire 19th floor.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Truman Capital Advisors v. Nationstar Mortgage,” where a plaintiff asserted claims for breach of contract based on defendant’s refusal to consummate a mortgage pursuant to an online auction, and “Livecchi v. The City of Geneva,” where a pro se property owner’s suit against a judge was dismissed based on judicial immunity.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law reviews “Henry Phipps Plaza v. Quijano,” where a landlord was awarded possession after the tenant intentionally misrepresented household income, “Bank of America v. Lucic,” where the court tolled a homeowners interest as a penalty to the bank for excessive delays, and “Midfirst Bank v. Agho” where the Second Department clarified the law relating to conformity of out-of-state affidavits.
The Metropolitan Transportation Authority, North America's largest transit network, has signed a 20-year lease with SL Green Realty Corp. for an expansion of the Metro-North Commuter Railroad Co. at 420 Lexington Ave. Also, boutique financial firms Brightwood Capital Advisors LLC and DH Capital LLC will be moving their headquarters to 810 Seventh Ave.
In their Residential Lease Law column, Adam Leitman Bailey and Dov Treiman of Adam Leitman Bailey, P.C., discuss how all residential leases in New York State now require a notice to the tenant about the presence or absence of sprinkler systems in the "leased premises," making note that while stating what must exist, the law has no enforcement mechanism on its face and no penalty stated for noncompliance.
After previously writing in their Landlord-Tenant column that Yellowstone injunctions are routinely granted, Warren A. Estis and Michael E. Feinstein discuss how the court in 'LIDC I v. Sunrise Mall' denied a commercial tenant's motion for such an injunction, finding that the tenant failed to show they were prepared to cure their rent default.
TD Bank U.S. Holding Company has signed a long-term lease with SL Green Realty Corp. for TD Bank's regional headquarters at One Vanderbilt, a proposed tower that will stand adjacent to Grand Central Terminal.
Scott E. Mollen, a partner at Herrick, Feinstein and an adjunct professor at St. John's University School of Law, reviews the case 'Hurley v. Watanabe,' where a condominium sponsor was held liable for breach based on delays in closing on the unit.
The law firm of DeCorato Cohen Sheehan & Federico is returning downtown after being displaced by Hurricane Sandy in 2012. The full-service civil litigation firm has signed a 15-year lease for the 14th floor of 90 Broad St.
In his Zoning and Land Use Planning column, Anthony S. Guardino of Farrell Fritz discusses how New York’s highest court has established a new standard for determining whether a zoning board of appeals must grant an off-street parking variance.
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 an Inquiry by Schneiderman, Attorney General of the State of New York v. Eichner,” where the attorney general obtained an ex parte court order barring sales at a timeshare hotel, and “737 Park Avenue Acquisition v. Jetter,” a landlord–tenant case dealing with the definition of “prevailing party,” and “American Atheists v. Port Authority,” where a group of atheists challenged the display of the cross in the September 11 museum.