Chetrit suing Barnett for $400M over Ring portfolio deal

Two of city’s biggest developers in legal battle over Extell’s 14-building acquisition

New York /
May.May 31, 2016 01:10 PM

Extell Development’s acquisition of the Ring portfolio is considered one of Gary Barnett’s shrewdest plays. But it also made him some enemies.

In a massive $400 million lawsuit, the Chetrit Group’s Joseph Chetrit is suing both Extell and Barnett — accusing the developer and his firm of interfering in Chetrit’s bid for the Ring family’s valuable portfolio of Manhattan office properties.

Chetrit’s attorneys filed summons Friday in New York State Supreme Court, claiming Extell’s 2013 acquisition of the 14-building portfolio represented “tortious interference” with Chetrit and Joseph Tabak’s Princeton Holdings’ plans for a joint venture to manage the properties.

According to the filing, Princeton was supposed to close on a $112.5 million deal for Michael Ring’s interest in the portfolio before entering into the joint venture, which would “have the opportunity to develop, sell and/or lease more than 1.2 million square feet of prime New York real estate.”

But Barnett’s play to acquire Tabak’s contract on Michael Ring’s stake in the buildings “knowingly caused Princeton to breach its obligations to [Chetrit] and interfered with the prospective [joint venture]” between Chetrit and Princeton, the summons claims.

Extell eventually also acquired Frank Ring’s stake in the portfolio, and has gone on to sell or ground-lease most of the properties, to the likes of the Kaufman Organization and Nathan Berman’s MetroLoft, for more than $700 million.

Chetrit is seeking a money judgment against Extell and Barnett “in the amount of no less than $400 million,” according to the filing. An Extell spokesperson declined to comment on the matter, while representatives for Chetrit did not return requests for comment.

Chetrit previously filed suit against Tabak and Princeton Holdings in relation to the deal for the Ring portfolio in 2013 — claiming that Tabak’s deal to flip the contract on Michael Ring’s stake to Extell for around $65 million represented “fraudulent and deceitful conduct” on the part of Tabak and his company. That lawsuit is still ongoing.


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)
Extell lands $690M refinancing package for One Manhattan Square
Extell lands $690M refinancing package for One Manhattan Square
Extell Development's Gary Barnett (Credit: Getty Images and iStock)
Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower
Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower
Central Park Tower
Extell just went public with Central Park Tower listings
Extell just went public with Central Park Tower listings
50 West 66th Street and the One57 building at 157 West 57th Street (Extell Development, One57)
Extell properties top Manhattan’s luxury contracts
Extell properties top Manhattan’s luxury contracts
Extell's Gary Barnett with Brooklyn Point and One Manhattan Square (Getty, One Manhattan Square, GrissJr, CC BY-SA 4.0, via Wikimedia Commons)
Extell lures buyers with condo towers’ mortgage rate perk
Extell lures buyers with condo towers’ mortgage rate perk
Joseph Chetrit and 260 East 72nd Street (Getty Images, Google Maps)
Chetrit plans Upper East Side condo development
Chetrit plans Upper East Side condo development
Extell Development’s Gary Barnett along with a rendering of 1520 First Avenue (Getty, Extell Development)
Extell lands $425M construction loan for UES medical tower
Extell lands $425M construction loan for UES medical tower
From left: Councilmember Christopher Marte, Gary Barnett, JDS Development’s Michael Stern, Joseph Chetrit and a rendering of Two Bridges (Getty)
Another lawsuit looks to stop Two Bridges developments
Another lawsuit looks to stop Two Bridges developments
arrow_forward_ios

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

Loading...