The Real Deal New York

Thurcon wins injunction in tangle over 125 Church Street

Dispute stems from lease default alleged by Feldman Heritage

March 17, 2014 11:20AM
By David Jones

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125-church

125 Church Street

A Manhattan Supreme Court judge granted an injunction in favor of Tribeca Mews developer Thurcon Properties, which is fighting to keep the leasehold on several adjacent parcels in connection with a certificate of occupancy.

Judge Jeffrey Oing ordered Feldman Heritage, owner of the ground lease at 125 Church and several adjacent sites, to appear in court on April 30. The judge wants Feldman Heritage to show why Thurcon should not be given the chance to cure the alleged lease default.

Feldman Heritage, led by investor Gary Silverstein, sent a letter on Feb. 10 to Thurcon, saying the firm was in default on the lease at 125 and 135 Church Streets, 33 Warren Street and 29 Murray Street. Feldman Heritage gave Thurcon until March 17 to cure the defaults. The residential part of 125 Church includes 15 one-to-three bedroom apartments for up to $8,000 a month, according to Streeteasy. The building also has five commercial units.

Lawyers for Thurcon, which is led by Brad and Harold Thurman, say that the firm is current on its monthly rent of more than $58,000, has a lease that expires in 2036 with a renewal option and note that the firm has spent $10 million a year to upgrade the loft building. The alleged default involves code violations related to a sprinkler alarm system and a 2009 violation involving a building elevator, according to Department of Buildings records.

Court records show that Thurcon was involved with some of the principals of Feldman Heritage in a $100 million lawsuit regarding a dispute over a $2.4 million air rights involving 125 Church and Tribeca Mews, located at an adjacent site at 25 Murray Street. That dispute led to delays at the 87-unit Tribeca Mews, while the developers had more than $50 million in sales on hold.

Thurcon later faced significant complaints and litigation from buyers at Tribeca Mews. In 2008, several buyers, including the daughter of developer Larry Silverstein, alleged that Thurcon attempted to force buyers to rescind their contracts so apartments could be sold at a higher prices.

In 2013, the condo board sued the developers, claiming the certificate of occupancy was pushed back at the building due to a number of construction defects. They also claimed the developers sold about 10 units to an outside buyer, and took some of the proceeds for themselves.

Attorney William Turkish, who represents the developers of Tribeca Mews, confirmed that the litigation is ongoing, but declined to comment on any specifics. Officials at Thurcon and Feldman Heritage were not immediately available for comment, nor were their lawyers in the 125 Church case.

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