Investor claims partners interfering with $65M hotel deal

Trevor Atwell sues Wall Street Capital Fund for trying to "derail" Mansfield Hotel purchase

New York /
Feb.February 22, 2016 03:40 PM

Financial District-based investor Trevor Atwell is suing Wall Street Capital Fund, claiming the investment firm is attempting to derail his $65 million acquisition of the landmarked Mansfield Hotel near Bryant Park.

Atwell filed the suit Feb. 19 against NoMad-based Wall Street Capital and three of the company’s members – managing director Albert Montano, managing member Mary Peter and attorney John DeMaio.

After Wall Street Capital informed Atwell of an opportunity to acquire the Mansfield, the two sides entered an agreement last month to form an LLC with the goal of purchasing the 12-story, 126-key hotel at 12 West 44th Street, according to the New York State Supreme Court complaint.

Atwell would hold a 99 percent interest and full management control of the partnership, the lawsuit claims, while Wall Street Capital would retain a 1 percent interest to “compensate it for finding the property.” The firm would also receive a 3 percent commission of the purchase price for the hotel.

But despite the agreement granting Atwell “absolute and sole authority to negotiate the acquisition,” the complaint alleges that Wall Street Capital “has attempted to derail the process.”

Atwell’s lawsuit says the firm is “apparently unhappy with the economic terms to which they have agreed,” and has “deliberately” tried to sidetrack negotiations for the Mansfield so that they can renegotiate the terms of their partnership or “take the deal elsewhere.”

The complaint details how Wall Street Capital has allegedly tried to interfere with negotiations for the hotel in a manner “directly contrary” to its agreement with Atwell – claiming that DeMaio and Peter had exclusive rights to negotiate the purchase price for the property and attempting to place a time frame on the deal’s closing.

Atwell is seeking a declaratory judgment that he has “sole authority” to conduct negotiations for the Mansfield, as well as an injunction “barring [Wall Street Capital] from from taking any actions to impede or impair” Atwell’s control of the partnership and negotiations for the Mansfield.

The historic hotel is currently owned by Midtown-based Ark Partners, led by Brad Reiss and John Yoon, who acquired the ground lease on the property in 2004. The property itself is owned by a partnership that includes landlord Hyman Jacobs, according to property records.

A representative for Atwell declined to comment on the matter, while Wall Street Capital could not be reached.


Related Articles

arrow_forward_ios
Hyatt CEO Mark Hoplamazian and Dream Hotel Group founder Sant Singh Chatwal with 355 West 16th Street in Manhattan NYC (Hyatt, Dream Hotel)
Hyatt to acquire Dream Hotel Group for up to $300M
Hyatt to acquire Dream Hotel Group for up to $300M
(Illustration by The Real Deal with Getty)
Developer fires back as Saddle River blocks affordable housing
Developer fires back as Saddle River blocks affordable housing
Maefield Development's Mark Siffin and 20 Times Square (aka 701 Seventh Avenue) (Getty, Edition Hotels)
Massive loan on Maefield’s 20 Times Square in trouble
Massive loan on Maefield’s 20 Times Square in trouble
From left: 608 Fifth Avenue, 22 North Loop Road, 38 West 36th Street (608 Fifth, Weiss/Manfredi, Morphosis, and Handel Architects, Apartments, Getty)
Top 10 Manhattan loans: Big lending enters deep freeze
Top 10 Manhattan loans: Big lending enters deep freeze
560 Seventh Avenue and Sharif El-Gamal (Margaritaville Resorts; Getty)
Synagogue sues Sharif El-Gamal over missing space
Synagogue sues Sharif El-Gamal over missing space
Sonesta Hotels’ John Murray and The Shelburne Hotel (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Affinia, Sonesta)
TRD Pro: Biggest hotel sales of the past year
TRD Pro: Biggest hotel sales of the past year
Corcoran Global Living's Michael Mahon (Corcoran, Getty)
Turmoil at Corcoran Global Living: CEO accused of fraud
Turmoil at Corcoran Global Living: CEO accused of fraud
From left: Peter Hungerford, Shai Segev, and Michelle Haruvi (Getty, LinkedIn, Zillow)
She wanted a piece of the Haruvi empire. She got an eviction notice instead
She wanted a piece of the Haruvi empire. She got an eviction notice instead
arrow_forward_ios

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

Loading...