Mortgage brokerage sues Joel Schreiber over alleged $700K fee

Estreich & Company claims it lined up loan for purchase of LA site but was stiffed on commission

TRD New York /
Jan.January 07, 2015 03:05 PM

A mortgage brokerage firm is suing Waterbridge Capital CEO Joel Schreiber for allegedly bilking it out of a $700,000 fee for arranging a loan for the purchase of a large downtown Los Angeles development site.

The brokerage, New York-based Estreich & Company, says it secured a $140 million loan for Schreiber’s team to help fund the acquisition of the Broadway Trade Center. 

The firm was cut out of the deal at the last minute, however, because it did not possess a California real estate license, according to the complaint, filed Tuesday in New York Supreme Court.

Schreiber and partners Jackie Jangana and Joyce Jangana-Reiss, who are also named as defendants, picked up the 1.1 million square foot former department store for $125 million in April, with plans to convert it to a mixed-use development.

Estreich contends that after the loan closed, the defendants repeatedly acknowledged the firm’s right to the consulting fee but never made the payment.

Estreich is also suing Canpartners Realty Holding Company and Canyon Capital Realty Advisors, which provided the loan.

A representative at Waterbridge Capital said the firm had no comment on the suit.

The other defendants could not immediately be reached for comment.

Estreich is represented in the case by Joshua Kopelowitz and Dani Schwartz of Rosenberg & Estis PC. Neither were immediately available for comment.

Related Articles

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork’s side businesses are fizzling

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

Tenants at “dozens of buildings” in LA receive eviction notices ahead of California’s new rent law

Nicolai Ouroussoff and Cecily Brown with 125 East 10th Street (Credit: Columbia GSAPP via Flickr, Wikipedia, and StreetEasy)

No criticism here: Nicolai Ouroussoff, Cecily Brown buy E. Village house for $7.75M

NYCHA strikes air rights deal with developer, WeWork shuttering its pricey private school: Daily digest

Alex Rodriguez

Watch: A-Rod on the benefits and pitfalls of being a celebrity investor