The Real Deal New York

More lawsuits filed in wrangle over 587 Fifth Avenue

Pair of investors tangling over who makes decisions about property

February 21, 2014 02:25PM
By David Jones

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587 Fifth Avenue at center

587 Fifth Avenue (center)

The ongoing legal battle for 587 Fifth Avenue is heating up again.

Investors Asher Zamir and Elyass (Elliott) Eshaghian filed a new round of lawsuits against each other to determine who has control over decisions that affect the property. This follows the botched 2011 sale of 587 Fifth to an investment group led by Crown Acquisitions.

Eshaghian, who owns a one-third share in a firm called Baruch, which control the leasehold at 587 Fifth, filed suit in Manhattan Supreme Court on Feb. 14 in a bid to stop the managing partner, Zamir, (whose legal name is Roshanzamir) from refinancing a loan at the property. Lawyers for Eshaghian allege the loan will increase the debt at the building by $10 million.

According to the suit, the investors owe Signature Bank $17 million and need to refinance the loan to prevent a foreclosure. The suit claims that Zamir plans to use about 20 percent of the excess proceeds to help meet the company’s capital obligations and pay himself millions of dollars. Eshaghian claims he will not agree to borrowing any more than needed to refinance the loan.

Just days earlier, Zamir filed a $10 million suit in Manhattan Supreme Court, claiming Eshaghian failed to disclose unauthorized and secret transactions related to the property. Zamir is demanding a full disclosure of these transactions and alleging Eshaghian breached his fiduciary duties to the company.

Zamir claims that Eshaghian owes $150,000 in unpaid rent through his jewelry business, called Evvan Imports, which was previously located on the third floor of 587 Fifth. Zamir is also demanding another $500,000 in contributions from Eshaghian in connection to his numerous lawsuits related to the building.

Zamir also claims that Eshaghian may have transferred financial assets linked to the building to some of his family members. The suit references a legal proceeding involving Eshaghian and his wife Roset, as well as transactions involving his nephews, Arash and Daniel Gohari, financial consultants who advise Eshaghian.

In 2013, a partnership that includes Crown and a firm that includes investor Steven Feldman of One North Realty, filed suit alleging their $27.5 million agreement to buy the 587 Fifth leasehold fell through when Zamir backed out of the deal. The suit asked a state Supreme Court judge to enforce the sale.

“These cases are ongoing and the parties are continuing to press their rights,” said Greenberg Traurig attorney Steven Sinatra, who represents Crown Acquisitions in their suit against Eshaghian and Zamir.

In June 2013, Eshaghian filed suit to stop the sale of the leasehold, alleging that Zamir did not have the right to make decisions about the property without his permission.

Elliott and Roset Eshaghian declined to comment. Zamir did not return calls for comment. Dan Gohari declined to comment on behalf of himself and his brother.

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