One-time 485 Lexington Avenue buyers call foul against SL Green

February 04, 2010 07:10PM

The one-time buyers of a 49.5 percent stake in 485 Lexington Avenue, located between 46th and 47th streets, are suing SL Green for breach of contract, alleging that the real estate investment trust had made a deal with them out of desperation, only to negate the transaction once it became more fiscally stable, Crain’s reported. While insiders said that the $504 million deal broke down because the servicer CW Capital refused approval, the plaintiffs in the suit, two companies known as Gilmore and Optibase, which had intended to purchase the building stake under a joint venture called “Mazal,” claim differently. They say that SL Green kept them in the dark regarding its negotiations with CW Captial and that the servicer’s requests were outlandish and unreasonable. David Scharf, Mazal’s lawyer, said that something was amiss. “We believe there is something nefarious going on here,” Scharf said. “SL Green was looking for a reason to back out.”