The Real Deal New York

Steiner Studios closes on Brooklyn office building with contract price of $30M

$900K commission suit brought by Massey Knakal is ongoing

December 06, 2011 05:35PM
By Adam Pincus

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Brooklyn-based Steiner Studios closed last week on the acquisition of a four-property package with a contract price of $30 million, including 350 Livingston Street in Downtown Brooklyn.

Steiner Studios bought the four properties: a 120,000-square-foot office building at 350 Livingston Street; a vacant lot at 325 Schermerhorn Street; a medical building at 345 Schermerhorn Street and a 20,000-square-foot parking lot at 62-64 Flatbush Avenue, last Wednesday, Ray McKaba, president of the Brooklyn-based seller Nevins Realty, said. He would not comment on the sale price.

One source said the sale closed at the $30 million contract price, but another person close to the deal said the price had changed, but did not elaborate.

The deal was apparently tied up because of a lawsuit brought in New York State Supreme Court June 22 by commercial brokerage Massey Knakal Realty Services seeking a $900,000 commission and which made claims against Nevins Realty including fraud and breach of contract in connection with the transaction.

The deal was expected to close June 30, the suit says.

Massey Knakal claimed in the court papers that McKaba and Steiner arranged a direct deal, and thereby cut Massey Knakal out without cause. The litigation remains ongoing.

A spokesperson for Steiner Studios said the company declined to comment. Paul Massey, CEO of Massey Knakal, declined to comment. Adam Leitman Bailey, a partner with his eponymously named law firm, who represented Nevins, declined to comment.

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