The Real Deal New York

Dueling Soho developers beef over unobstructed views

Agime Group accuses Madigan Development of using DOB to block project
By Konrad Putzier | April 05, 2017 03:10PM

570 Broome Street and 111 Varick Street

Building a condo tower with 360-degree views is any developer’s dream. But what if the owner of the lot next door has the exact same idea?

That, in a nutshell, is what a new legal duel between Agime Group and Madigan Development is all about. Agime wants to build a 25-story, 287-foot-tall tower at 568-570 Broome Street in Hudson Square. Madigan wants to build a 290-foot tall apartment building next door at 111 Varick Street. Now Agime filed a lawsuit against the neighboring developer accusing it of trying to sabotage the rival project to preserve its own building’s views.

Agime, headed by Murat Agirnasli, is able to build 287 feet tall because the Department of Buildings designated the area in front of 570 Broome a so-called Wide Street, which increases the building’s maximum allowable height. According to a complaint filed in New York State Supreme Court on Tuesday, Madigan wrote to the DOB challenging the Wide Street designation and plans to appeal a ruling that upheld the designation. If Madigan gets its way, Agime will only be able to build 185 feet tall.

Agime alleges that Madigan wrote to the DOB in violation of a zoning lot development agreement prohibiting such interference because it wanted “to provide unobstructed views to the units on the upper floors of its building.”

Agime paid $31 million for the lot in 2014 and dished out another $10.2 million for air rights, according to a previous report and the complaint. Construction is already under way.

Agime’s attorney and Madigan did not respond to emails seeking comment.

The two firms aren’t the first developers to bicker over views. Extell Development threatened to block Vornado Realty Trust’s condo project 220 Central Park South because it would have blocked views from Extell’s Central Park Tower project. The two sides settled their dispute in 2013 by each agreeing to move their projects a little to the side.