Lotta headaches for Harlem condo-turned-hostel developers

TRD New York /
May.May 24, 2010 07:00 PM

Tamir Shemesh and 159 West 118th Street

Prudential Douglas Elliman is suing the developers of an erstwhile condo-turned-shuttered hostel in South Harlem for failing to pay $130,000 in broker termination fees after cancelling the sales effort there, according to a lawsuit filed May 17 in New York State Supreme Court.

Elliman’s Tamir Shemesh had been the exclusive sales agent for Lotta Condominiums, the H. Thomas O’Hara-designed prewar conversion at 159 West 118th Street, from April until July of 2008. At that point, according to StreetEasy.com, just one of the building’s 35 units had gone into contract. With the market starting to turn and a slew of other condos gearing up to hit the market nearby, developers Gal Sela and Eli Idi decided to turn the building into a youth hostel, instead.

Branded as L-Hostel, Sela operated the building successfully until last month, when it was shuttered and vacated by the Department of Buildings for operating as a transient hotel without the necessary permits and for improper means of egress. L-Hostel will not be reopening its Harlem location, which has an alternate address of 1961 Adam Clayton Powell Boulevard, but is looking to open elsewhere in the New York area, according to the company’s website.

Meanwhile, Elliman was never paid for its advertising, sales and consulting services despite written demands, the lawsuit alleges. The firm’s contract, according to the suit, had promised a $50,000 “break-up fee,” plus an additional $20,000 per month of sales office operations, in the event that the developer decided to abandon the project or decided not to sell the units.

Shemesh declined to comment on the ongoing litigation. The developers could not be immediately be reached for comment.

 

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
Gov. Andrew Cuomo has given the go-ahead to reopen schools for in-person learning statewide (Getty; iStock)

School’s back on. Will the NYC resi market follow suit?

School’s back on. Will the NYC resi market follow suit?
(Google Maps)

National retail chains paid 80% of July rent, a Covid high

National retail chains paid 80% of July rent, a Covid high
Dan GIlbert (Getty, iStock)

Mortgage mogul Dan Gilbert sees net worth quicken to $34B

Mortgage mogul Dan Gilbert sees net worth quicken to $34B
News Corp. chairman Rupert Murdoch (Murdoch by Dia Dipasupil/Getty Images; Pixabay)

Move Inc. revenues drop as Realtor.com traffic climbs

Move Inc. revenues drop as Realtor.com traffic climbs
President Donald Trump and Blackstone CEO Stephen Schwarzman (Trump by Scott Olson/Getty Images; Schwarzman by David Fitzgerald/Sportsfile for Web Summit via Getty Images)

Blackstone boss leads Wall Street charge for Trump

Blackstone boss leads Wall Street charge for Trump
arrow_forward_ios

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

Loading...