Tribeca loft buyers, developer to square off in court

TRD New York /
Jun.June 18, 2008 04:03 PM

The developer of a long-delayed Tribeca condo building is slated to face three angry buyers — including the daughter of World Trade Center developer Larry Silverstein — in court on July 28.
 
The buyers claim in a recent lawsuit that the developer, Tribeca Mews Ltd., has refused to close on condos in the 74-unit Tribeca Space in a scheme to force buyers to rescind their contracts. 

The suit, filed last month in New York State Supreme Court, alleges that developers Brad Thurman and his father, Harold, delayed closing dozens of contracts at the 25 Murray Street project so that frustrated buyers would back out of their agreements. The suit, first reported by the Tribeca Tribune, alleges that the developers then planned to take advantage of the thriving Downtown loft market and resell the units at higher prices. It seeks to force the developers to obtain a temporary certificate of occupancy.

The suit alleges that “defendant Brad Thurman boasted to Plaintiff [Lisa] Silverstein that it was his goal to force every purchaser of units in the building to rescind his or her purchase agreement, so that he could take advantage of the current upswing in Tribeca property prices.”

The plaintiffs are claiming damages and demand that a temporary receiver be appointed to manage the project.

A lawyer for the developer vehemently denied the charges, and said it has hired a former Buildings Department lawyer to help it obtain a temporary certificate of occupancy.

“The sponsor for the 25 Murray Street project steadfastly denies the allegations in Ms. Silverstein’s and the Forman’s lawsuit and has been as frustrated as they are by the delays,” said Jason Blasberg, attorney for Tribeca Mews, in an emailed statement.

Blasberg said in his statement that the delays forced the developer to offer a number of buyers the chance to rescind their contracts. New York state law requires a condo developer to offer buyers a way out if the development’s closing is delayed more than 12 months.

Blasberg said that Tribeca Space, which is being marketed by Jim Brawders, senior vice president at Corcoran Group, has 30 units still available, and called the project “financially sound.”

Court records show that Lisa Silverstein, a senior vice president at Silverstein Properties Inc., signed an agreement and paid a 10 percent down payment in August 2006 on four ninth-floor apartments at Tribeca Space for $6 million. She planned to relocate her husband and three children into the building, after combining the four units into one large apartment. 

According to a first-quarter report by the Corcoran Group, prices for Downtown loft apartments rose 8 percent year-over-year to an average of more than $2 million. The Real Deal reported on the Downtown loft boom in its May issue.

Last month, the Tribeca Tribune reported that 30 contracts were rescinded after a group of irate buyers formed the 25 Murray Street Purchasers Rights Coalition and complained about the delays in a letter to Attorney General Andrew Cuomo.

Silverstein, Tribeca Mews and the attorney general’s office were not immediately available for comment.

The complex originally started sales in 2006. Apartments range from $1.35 million for a 1,395-square-foot one-bedroom unit to $2.275 million for a 2,094-square-foot unit with three bedrooms and three baths.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
20 Times Square and Maefield Development’s Mark Siffin (Edition Hotels)

Times Square Edition to reopen as Maefield clears up debt dispute

Times Square Edition to reopen as Maefield clears up debt dispute
RTW Retailwinds CEO and CFO Sheamus Toal and a New York & Company store (Getty, LinkedIn)

New York & Company parent files for bankruptcy

New York & Company parent files for bankruptcy
Related’s Jeff Blau, 1085 Colgate Avenue and 1050 Wheeler Avenue (Getty, Google Maps)

Related sells two more pieces of vast Bronx multifamily portfolio

Related sells two more pieces of vast Bronx multifamily portfolio
Clipper Equity's David Bistricer with 77 Commercial Street and Shorewood's S. Lawrence Davis with 160-05 Archer Avenue (REIT, Google Maps)

June’s biggest outer-borough loans led by $386M for Greenpoint

June’s biggest outer-borough loans led by $386M for Greenpoint
 Thomas Barrack, Sheraton San Jose Hotel in Milpitas, CA, Residence Inn Cypress Los Alamitos (Getty, Google Maps, Marriott)

Colony Capital may lose control of 2 largest CMBS hotel portfolios

Colony Capital may lose control of 2 largest CMBS hotel portfolios
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...