The Real Deal New York

Toby Moskovits to settle lawsuits with ex-partners

Goldman, Gluck buying Heritage Equity chief out of projects -- and vice versa

October 09, 2015 04:15PM
By Mark Maurer Twitter_logo_blue copy

Toby Moskovits

From left: Toby Moskovits (credit: Ashley Walker), rendering of 41-21 28th Street in Long Island City and the Spire Lofts in Williamsburg

Toby Moskovits and her former partners Yoel Goldman and Joel Gluck reached a tentative settlement in four lawsuits, which will see the developers divvy up properties they previously owned together, documents filed with the Tel Aviv Stock Exchange this week show.

“The separation of business is really good for all three,” a source familiar with the negotiations said. “They are getting more ownership in the assets in which they were dominant.”

Earlier this year, Moskovits, who runs Heritage Equity Partners, accused Goldman and Gluck of fraud and breach of fiduciary duties in regard to the church-to-rental conversion Spire Lofts and a rental development at 41-21 28th Street in Long Island City. According to court papers, she claimed that they used their joint LLC partnership to secure a Tel Aviv bond offering, and by doing so, also pledged her interest without her consent. Goldman and Gluck disputed the claims and insinuated in court documents that Moskovits was jealous of their success in the bond market.

Goldman, of All Year Management, and Gluck, of Spencer Equity, have each raised $100 million in separate bond offerings. Moskovits and Goldman have teamed on the majority of her projects, while she and Gluck have only worked together a few times.

As part of the settlement, Moskovits is transferring her membership interests to Goldman and Gluck on some projects, while they are transferring interests to her on others. Her stake in the 150-room Williamsburg Hotel project, for example, will grow to 99 percent from 55 percent. Previously, Goldman had a 34 percent stake in the project, while Gluck held 10 percent.

Moskovits will transfer her interests in properties including 41-21 28th Street, the Spire Lofts, 65 Kent Avenue and 271 Metropolitan Avenue, the filing shows. Gluck has a stake in 41-21 28thStreet and the Spire Lofts, and Goldman has an interest in all four, among others such as 564 St. John’s Place, 61 North 9th Street and the large ground-up, speculative office project at 25 Kent Avenue known as the Generator.

For the latter project, Moskovits agreed to buy out Goldman, as well as the Rabsky Group’s Simon Dushinsky, whom Goldman brought into the deal as a minority investor. Goldman meanwhile agreed to provide Moskovits with a $7 million loan, the documents state.

Representatives for Moskovits and Gluck could not be reached for comment Friday. Goldman’s attorney Stephen Tisman declined to comment, but in a letter to the Kings County Supreme Court last week, he said he expects the partners to fully settle their dispute by mid-November.

Rey Mashayekhi contributed reporting. 

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