JEMB suing H&M for $25 million

Landlord's suit latest in Herald Center facade saga

New York /
May.May 14, 2015 03:44 PM

JEMB Realty is suing Swedish retail giant H&M for $25 million, claiming the clothing company failed to pay excessive renovation costs for work done to the façade of its new flagship store at 1293 Broadway in Herald Center.

The Lower Manhattan-based firm – which owns the Herald Center property where H&M will open its 63,000-square-foot flagship on May 20 – alleges that the retailer approved a façade renovation that would cost “significantly in excess” of JEMB’s contribution as landlord, yet has “failed and refused” to pay such excess costs.

The lawsuit was filed on the same day that H&M brought its own legal action against JEMB, seeking more than $11 million and claiming the firm changed the design of the façade at 1293 Broadway without its permission. That lawsuit placed JEMB’s agreed contribution to the façade reconstruction at $12 million.

While H&M’s lawsuit alleges that renovation work was not completed by an agreed-upon date in December and seeks damages of $41,000 for each day in the delay of the work’s completion – more than $4.6 million at the time of filing – JEMB’s lawsuit claims it achieved “substantial completion” of the work on that date.

The landlord also claims that while H&M has “raised certain objections to the excess costs incurred” by JEMB, the firm has “performed its obligations” under the lease agreement between the two sides.

Legal representatives for both H&M and JEMB Realty did not respond to requests for comment.

H&M’s has increased its profile in the city in recent years, arranging for four illuminated “H&M” signage panels to be installed atop the Durst Organization’s 4 Times Square office tower in 2013.


Related Articles

arrow_forward_ios
Zelig Weiss bids for William Vale Hotel after All Year’s demise (William Vale)
In fight over William Vale hotel, Zelig Weiss offers to buy it
In fight over William Vale hotel, Zelig Weiss offers to buy it
The Centre at Purchase  and George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
George Comfort & Sons escapes foreclosure on Westchester office campus
George Comfort & Sons escapes foreclosure on Westchester office campus
Gotham Organization Chairman Joel Picket with the proposed development at 130 Felix Street (Grid Properties, Rendering via FXCollaborative)
Gotham Org’s Fort Greene project overcomes local opposition
Gotham Org’s Fort Greene project overcomes local opposition
Ex-partners’ feud stalls $140M development in Port Chester
Ex-partners’ feud stalls $140M development in Port Chester
Ex-partners’ feud stalls $140M development in Port Chester
Brookfield kicks off review process for $2B Stonestown Galleria mall redevelopment
Brookfield kicks off review process for $2B Stonestown Galleria mall redevelopment
Brookfield kicks off review process for $2B Stonestown Galleria mall redevelopment
HRI founder Aaron Carr and Virginia Attorney General Mark Herring (Facebook, Getty)
Housing Rights probe pins voucher discrimination on VA landlords, brokers
Housing Rights probe pins voucher discrimination on VA landlords, brokers
Judge trashes 421a rent overcharge suit against Muss
Judge trashes 421a rent overcharge suit against Muss
Judge trashes 421a rent overcharge suit against Muss
Ty Warner and Four Seasons 57 East 57th Street (Getty, Google Maps)
Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
arrow_forward_ios

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

Loading...