search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421a“Investing before the ‘all clear’ sign”: Jon Gray on Blackstone’s $10B apartment deal“Investing before the ‘all clear’ sign”: Jon Gray on Blackstone’s $10B apartment dealVictor Sigoura picks up site of failed West Chelsea condo for $87MVictor Sigoura picks up site of failed West Chelsea condo for $87MGVA sells Georgetown apartments for $25M in “forced sale” GVA sells Georgetown apartments for $25M in “forced sale” 
New York

Cassidy Turley suing over $2.3 million commission at Chelsea shelter site

Cassidy Turley New York has filed suit against developer Dan Shavolian
alleging he failed to pay a $2.3 million commission on a February 2010
lease agreement with the Bowery Residents Committee.

The brokerage, which previously operated under the name Colliers ABR,
alleged in the July 14 suit that Shavolian, working through a firm called 127
West 25th, breached an agreement by failing to pay the commissions at 127
West 25th Street, which were due in several installments starting in October
2010.

The suit is the latest in a long running series of disputes at the building, as
community groups and local politicians have protested and gone to court to
stop BRC from putting a homeless shelter in the building.

A State Supreme Court judge rejected a request by the Chelsea Flatiron Coalition earlier this month to block the opening of the shelter, in which 328
homeless men, including those undergoing drug treatment, would be housed.

City Council Speaker Christine Quinn has been a vocal critic of the
shelter, arguing the shelter does not comply with local zoning laws.

Sign Up for the undefined Newsletter

The BRC previously signed a 33-year lease at the property and is spending
about $12 million to renovate the space. RC filed suit against the landlord in February seeking to block the landlord from evicting the tenant.

Court records show that the landlord sent a default letter to BRC in February
seeking to terminate the lease, on the basis of failing to pay $210,000 in
rent. Shavolian also argued that he was not able to get financing for
the property due to the legal challenges against BRC that he claimed were
slowing down the process to get building permits.

Shavolian had agreed to fund $4 million of tenant improvements for BRC
and loan the tenant $8 million to renovate the property. Shavolian argued
that his building was vacant for more than one and a half years amid a legal
battle by community groups looking to stop BRC from opening the shelter.

Shavolian was not immediately available for comment and nor was attorney
Michael Cole, representing Cassidy Turley, nor Muzzy Rosenblatt, a former
commissioner of homeless services and the executive director of BRC.

A spokesperson for Cassidy Turley said the firm had no comment.

Tags
Cassidy TurleyColliers International