The Real Deal New York

Posts Tagged ‘arbor realty’

  • The developers of a troubled Turtle Bay condominium tower filed a $100 million malpractice lawsuit against two high-powered law firms Cozen O’Connor and Blank Rome for allegedly giving them bad zoning advice prior to the fatal March 2008 crane collapse that killed seven people at the East 51st Street site.

    The developers, led by former firefighter James Kennelly of Kennelly
    Development, alleged in a suit filed June 13 in New York state Supreme
    Court that their former zoning lawyers provided flawed legal opinions,
    which led them to overestimate the value of the property, leading to the
    eventual default of $70 million in loans with Arbor Realty Trust.

    “Cozen and Blank Rome’s incorrect analysis of the applicable zoning
    regulations and their failure to conduct sufficient and adequate due
    diligence caused plaintiff to overestimate the value or potential value of
    the project,” attorney Rex Whitehorn, representing Kennelly, wrote in
    the complaint, “and plaintiff made irreversible decisions with respect to
    financing while relying on plaintiff’s advice.” … [more]

  • Arbor Realty Funding, the lender at the site of a fatal 2008 crane collapse in Turtle Bay, has filed a $69 million malpractice suit against Herrick Feinstein, alleging the law firm provided bad advice about the zoning regulations for the planned 42-story tower. Manhattan-based Arbor provided $70 million in short-term bridge loans to help developer Jim Kennelly convert the several parcels at 303 East 51st Street into a luxury condominium, but a crane collapsed onto a residential building across the street, killing seven people, causing millions of dollars in structural damage and criminal convictions. … [more]