Gluck, Benishai in battle over Upper West Side buildings

Stellar Management boss looks to derail David Benishai’s sale of 250-252 West 76th Street

New York /
Jun.June 04, 2014 03:18 PM

Lawyers for Laurence Gluck are scheduled for a June 27 court hearing to try to block real estate investor David Benishai from selling his stake in an Upper West Side residential complex to rival firm Argent Ventures.

Gluck, who last year bought a 49.9 percent stake in a 69-unit residential complex at 250-252 West 76th Street from investor Jack Benishai, filed suit on Monday to block Benishai’s brother David from completing a deal to sell his stake to Argent, a Manhattan-based investment firm founded by Andrew Penson.

Gluck, the founder of Stellar Management, also claims that David Benishai defaulted on a $6 million loan that he borrowed from Ilan Properties, the company that controls the buildings.

Gluck, in court documents, claimed the two brothers borrowed the money from Ilan under a five-year loan that was due on March 31st. Gluck claimed that the structure of the loan was not declared as taxable income by David and therefore ‘highly controversial’ if not a possible legal violation, according to court papers.

“David does not and cannot speak for Ilan in any aspect of the transaction, and has a conflict of interest, and is a debtor of Ilan, in default on the settlement agreement,” Gluck said in an affidavit. “Further due to his breach of fiduciary obligations, bad faith and self dealing, David should not be allowed to enter into a material transaction which alters the structure of Ilan.”

The complex includes a four-story rental building at 250 West 76th and an 11-story rental at 252 West 76th Street.

Attorney Claude Castro, who represents David Benishai, confirmed that an agreement is on the table to sell the stake, but claims that Gluck’s lawyers misinterpreted the loan agreement. He says that the Benishai brothers each borrowed about $1.1 million each from Ilan and said those notes are not due until 2019, adding that there was a deal to refinance the property’s mortgage.

Castro also said the judge rejected the emergency request for a restraining order, but set a date for both sides to submit legal arguments.

“In my opinion I think the claim is really baseless,” Castro told The Real Deal. “I’m pretty sure it will be denied on the return date.”

Lawyers for Gluck were not immediately available, nor were officials at Argent. Attorney Ari Weiss, representing Jack Benishai, said he could not immediately comment.

As The Real Deal previously reported, the Naftali Group sued Jack Benishai in 2013, claiming he reneged on a deal to sell the properties to them for $25 million.


Related Articles

arrow_forward_ios
Census tract 135 and Stellar Management's Larry Gluck (Credit: Getty Images and Stellar Management)
How a small stretch of land on the Far West Side became an Opportunity Zone
How a small stretch of land on the Far West Side became an Opportunity Zone
Sackman Enterprises president Carter Sackman and 15-19 West 96th Street (Sackman Enterprises, Google Maps, iStock)
Fed up Chabad sues Sackman over unfinished condo
Fed up Chabad sues Sackman over unfinished condo
From left: Lawrence Friedland and Stanley Zabar in front of 2231 Broadway (Getty Images, Friedland Properties, iStock)
Friedland sues Zabar family in UWS dispute
Friedland sues Zabar family in UWS dispute
Joe Chetrit with Empire Hotel (Empire Hotel)
Chetrit secures lifeline at Empire Hotel
Chetrit secures lifeline at Empire Hotel
From left: Sam Zell and Douglas Eisenberg along with 160 Riverside Boulevard (Getty Images, A&E Real Estate, Google Maps, iStock)
A&E nears $400M deal for another of Zell’s former Trump Place buildings
A&E nears $400M deal for another of Zell’s former Trump Place buildings
Gale A. Brewer and the West Park Presbyterian Church at 165 West 86th Street (Getty Images, Google Maps, iStock)
Failing church turns to developer for salvation, but Brewer objects
Failing church turns to developer for salvation, but Brewer objects
From left: Amy Schumer and 190 Riverside Drive; Jimmy Fallon and 34 Gramercy Park East (Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons, iStock)
Jimmy Fallon, Amy Schumer selling Manhattan pads
Jimmy Fallon, Amy Schumer selling Manhattan pads
Adam Leitman Bailey, Y. David Scharf, and Miki Naftali with 215 West 84th Street (Adam Leitman Bailey, Morrison Cohen, Getty)
Naftali lays out project as holdout tenant plays new card
Naftali lays out project as holdout tenant plays new card
arrow_forward_ios

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

Loading...