The Real Deal New York

Denham Wolf claims Gansevoort developers, tenant owe $10M in commissions

Maiyet inked a 15-year lease for 60-74 Gansevoort with Aurora Capital, William Gotlieb Real Estate
By Kathryn Brenzel | December 02, 2016 01:48PM

From left: Renderings of 60-68 Gansevoort Street, 70-74 Gansevoort Street and Jonathan Denham

From left: Renderings of 60-68 Gansevoort Street, 70-74 Gansevoort Street and Denham Wolf’s Jonathan Denham

A commercial brokerage claims that Aurora Capital Associates, William Gottlieb Real Estate and fashion retailer Maiyet together stiffed it on nearly $10 million in commissions.

Denham Wolf Real Estate Services filed a lawsuit on Friday against the developers and luxury retailer Maiyet, alleging that they failed to pay commissions after the brokerage helped arrange a leasing deal at 60-74 Gansevoort Street. According to the lawsuit filed in New York State Supreme Court, Maiyet owes Denham $6.6 million, while the developers owe $3.2 million plus interest.

Aurora and William Gottlieb Real Estate are currently redeveloping the Gansevoort Street property as part of a 111,000-square-foot commercial development along the historic street. Maiyet inked a 15-year lease in October 2015 for parts of the basement, ground-floor and upper floors of one of the buildings. The lawsuit doesn’t specify if the retailer planned to take space in 60-68 or 70-74 Gansevoort Street (which are separate buildings), and it’s also unclear how much space it’s taking. Maiyet agreed to pay $245.9 million over the course of the 15-year lease, with a starting annual rent of $13.2 million. According to a Cushman & Wakefield, retail rents in the Meatpacking District averaged $394 per square foot in the second quarter of 2016, the third-lowest submarket in Manhattan.

Representatives for the developers and Maiyet could not immediately be reached for comment.

Maiyet allegedly tried to get out of the lease in May, as the Gansevoort project awaited approval from the Landmarks Preservation Commission. The developers refused to let the retailer back out of the deal, saying that Landmarks’ decision on the project didn’t impact Maiyet’s lease. The commission approved the project in June, after the developers agreed to a few design changes.