A Starrett subsidiary got a rude shock last month after the New York State Supreme Court ruled that it had improperly de-regulated rents at a stabilized South Bronx building at 1600 Sedgwick Avenue, Crain’s reported. The ruling against the landlord, Riverview Development, and subsequent injunction to halt the eviction of those tenants who refused to pay higher rates, was based in part on the precedent set in the Stuyvesant Town and Peter Cooper Village case, which found that developer Tishman Speyer and BlackRock Realty had illegally deregulated rents there while taking government tax breaks. In the court filing, the judge cited the Stuy Town case as an influence, noting in this instance that “once defendants prepaid their mortgage it appears that they ceased to be subject to the regulations attendant to that mortgage… [while still] benefiting from the J-51 tax abatement program.”

Law firm Orrick Herrington & Sutcliffe is expected to sign a lease for 220,000 square feet at Black Rock, the CBS-owned building at 51 West 52nd Street, sources told the New York Observer. Orrick will take the space previously occupied by UBS and Cushman & Wakefield. Cushman will be consolidating its Midtown offices at 1290 Avenue of the Americas. Sources told the Observer that UBS paid more than $32 million to end its lease early. CBS is applying that money to Orrick’s deal, reducing the firm’s rent. Orrick was looking at a 300,000-square-foot space in Boston Properties’ Citigroup Center last year, but the deal fell through. Orrick is leaving a 240,000-square-foot space at 666 Fifth Avenue.