Barclays Capital Real Estate is being sued for breach of contract relating to a deal involving the purchase rights to a 275,000-square foot property at 475 Fifth Avenue, according to Crain’s.
L&L Holding, which has managed the 23-story building on behalf of Barclays for close to two years, says it had the first right of offer on the property in the event that Barclay’s should ever choose to sell (note: correction appended). It is seeking damages after Barclays denied this right by offering the building at a “commercially unreasonable price that is substantially above fair market value,” according to a summons filed in New York State Supreme Court last month.
Real estate funds Westbrook Partners and the Moinian Group paid $162 million for the building in 2007. It was then taken over by Barclays in 2009.
CB Richard Ellis replaced L&L this week as manager of the building after the summons was filed. [Crain’s]