The Real Deal New York

Gary Barnett says Noho building landlord is trying to cheat him out of lifetime lease

The saga over a nondescript mixed-used building continues

September 26, 2016 02:30PM
By Kathryn Brenzel

736 Broadway and Gary Barnett

736 Broadway and Gary Barnett

Gary Barnett’s Extell Development is entangled in yet another battle over a decidedly modest 11-story Noho building.

Extell lobbed a lawsuit against the building’s owner UD 736 Broadway LLC, led by Jeong Kim, for trying to cheat the real estate company out of its interest in 736 Broadway, according a documents filed Sept. 14 in New York State Supreme Court. Extell claims that it has a lifetime lease on the third-floor of the mixed-use building and that Kim is ignoring the terms of their agreement.

Kim bought the building from Extell TRData LogoTINY in 2013 for $8.7 million, property records show. According to the lawsuit, Extell and Kim cut a deal that Barnett’s firm would have a lifetime lease on the entire third floor and that once the floor’s tenant moved out, Kim would notify Extell and not market the space. However, Kim has started marketing the space and is claiming that Extell only has control over the front portion of the third floor, the complaint alleges. The lawsuit claims that instead of honoring their deal, Kim has “embarked on a nefarious campaign to deprive [Extell] the fruits of the agreement.”

Kim did not immediately return a message seeking comment.

This isn’t the first time that Extell has struggled to own part or all of the building. The developer tried for nine years to buy the building and one next to it — 734 Broadway — amid a bitter battle between three brothers over their late father’s real estate portfolio. Barnett finally succeeded in buying both buildings in 2011 for $11 million.

A representative for Barnett did not immediately return a message seeking comment.

In the lawsuit, Extell is seeking a permanent injunction to bar Kim from ever marketing or selling the third floor.

MENU