Ex-United exec sues firm after botched 866 UN Plaza buy

TRD New York /
Dec.December 20, 2013 11:21 AM

UPDATED, 12:12 p.m., Dec. 22: The former president of United Realty Partners is suing the firm and its CEO over an allegedly improper fund transfer that resulted in United being disqualified as a prospective buyer of 866 United Nations Plaza. On Tuesday, Meadow Partners closed on the $200 million acquisition of the office tower, between First and York avenues, from Vornado Realty Trust.

United was contemplating partnering with Meadow on the buy, as The Real Deal reported yesterday. Meadow and United entered contract last month. But United’s investor group failed to raise enough money and Meadow purchased the 360,000-square-foot asset alone.

Now Eli Verschleiser, formerly of United, alleged in New York State Court that United and its CEO Jacob Frydman improperly transferred $6.9 million of investors’ funds after Verschleiser resigned. Frydman still controls the funds, the suit says, despite the fact that they were not deployed in the failed bid to purchase 866 U.N. Plaza.

“All investor money was returned immediately, and before the lawsuit was ever filed,” Frydman said in a statement provided to The Real Deal. “In fact, in denying the temporary restraining order that Mr. Verschleiser requested, the court stated that he had not shown any likelihood of success in the case.”

Vornado netted about $146 million from the sale after repaying current debt and various closing costs, Law360 reported.

Meadow also recently acquired a 130-unit rental building at 110 Green Street in Greenpoint for $72 million. [Law360]Mark Maurer


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Facebook CEO Mark Zuckerberg and Apple CEO Tim Cook with a rendering of the Farley development (Credit: Getty Images, SOM iStock)

Facebook facing off with Apple over space in Vornado’s Farley Building conversion

220 Central Park South and Michael Cantanucci (Credit: Getty Images and Google Maps)

Car dealer drops $38M for condo at 220 CPS

Facebook CEO Mark Zuckerberg and a rendering of the Farley Post Office building redevelopment (Credit: Getty Images, SOM)

Facebook in talks for massive lease at Vornado’s Farley Building

Vornado president Michael Franco and 512 West 22nd Street (Credit: VNO)

WarnerMedia to anchor Vornado’s West Chelsea spec office

From left: 220 Park Avenue South, 15 Central Park West, 520 Park Avenue, 35 Hudson Yards, Sting, Juan Beckmann Vidal, Daniel Och, Bob Diamond, and Stephen Ross (Credit: Getty Images, Wikipedia, StreeEasy, and Google Maps)

Serial buyers trade “old” condos for new on Billionaires’ Row

arrow_forward_ios