SL Green sues AIG for $20M

Landlord claims insurance company left 180 Maiden Lane in poor condition

New York /
Jul.July 11, 2014 06:25 PM

The city’s largest office landlord, SL Green Realty, filed a $20 million lawsuit yesterday claiming the global financial firm American International Group did not leave its office space at 180 Maiden Lane in good condition. SL Green, a real estate investment trust headed by CEO Marc Holliday, filed the suit in New York State Supreme Court against AIG’s unit AIG Employee Services.

AIG’s unit, which occupied most of the 1.1 million-square-foot building, vacated the space in April to relocate to 175 Water Street.

SL Green alleges that as a tenant, AIG failed to take the “requisite ‘good care’ of certain electrical installations.” And, the suit claims that after vacating, AIG failed “to return the building and its installations to owner in the condition required by the lease.”

“We believe the claims are without merit,” a spokesperson for AIG said in an email to The Real Deal. SL Green declined to comment.

AIG, led by outgoing CEO Robert Benmosche, was the biggest tenant in the building from June 2008 through the end of April, occupying some 800,000 square feet.

SL Green claims that AIG did not maintain so-called “busways” that transport supplemental electrical power. The landlord is seeking $17 million just to cover the costs to remove and replace them.

In addition, for the balance of the suit, the landlord says AIG also made alterations to the building, including installing a kitchen that must be removed, and some concrete slabs used to support greater floor loads and cuts  for passages between the 30th and 31st floors.

In addition, the suit states the space was not left “broom clean,” with “considerable debris and garbage,” in the building.

Nonetheless, the building was granted LEED certification by the U.S. Green Building Council, SL Green announced this week.


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