The Real Deal New York

Condo board suit over gym lease goes to court

New York State Supreme Court will decide future of retail space at 140 Franklin Street
March 05, 2014 04:20PM

The landlord of a Tribeca condominium building blocked from leasing space to Crunch Gym is heading to court next week to fight a temporary restraining order brought by the building’s board of managers.

The restraining order currently prohibits development firm Lily Realty from signing the gym to a lease for 19,000 square feet on the ground floor and lower levels of 140 Franklin Street, but will expire after the court reaches a decision next Wednesday.

The condo board filed a $5 million lawsuit with the New York State Supreme Court in January claiming the building doesn’t have the proper zoning to house a gym, and that the lease would violate the building’s condo declaration and by-laws, the Commercial Observer reported. Broker Jamison Weiner of the Manhattes Group had expected to lease the space, on the corner of Franklin and Varick streets, for about $110 per foot.

The six-story building is home 13 tenants, including high-profile New Yorkers like J. Crew chief executive Mickey Drexler, who bought a combined fifth-floor unit for $14.3 million in 2012, city records show. [NYO] — Angela Hunt