212 Fifth developers settle lawsuit with Town over termination

Parties locked horns over sales benchmarks

TRD New York /
May.May 22, 2017 05:10 PM

Andrew Heiberger, Robert Gladstone and 212 Fifth Avenue

The developers of 212 Fifth Avenue, a 48-unit luxury condominium conversion project near Madison Square Park, have settled a legal battle with the project’s former marketing firm, Town Residential.

In the suit, filed in January, the development team, a partnership between Madison Equities, Building and Land Technology and Thor Equities, alleged that the brokerage resisted being replaced by Sotheby’s International Realty despite having failed to meet sales targets.

Town countered that the developers had been improperly withholding more than $2.5 million in commissions its new development team had already earned from closings and contracts. The firm also accused the developers of failing to provide a finished sales office or adequate marketing materials, thereby delaying marketing of the units.

Spokesperson for Town and the developers declined to provide any details on the terms of the settlement.

Town had sold 23 units, or about 50 percent of the project, at the time of its dismissal in December, the firm previously said. A spokesperson for the project said it’s now about 70 percent sold.

Buyers at the NoMad building include real estate developer Charles Kushner and Ed Bass, the Fort Worth billionaire famous for funding a “Biosphere” experiment, The Real Deal previously reported.

Related Articles

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

Caspi Development’s Joshua Caspi, Core Asset Management’s James R. Parks, Hana Financial Investment’s Lee Jin-Kook, and 456 Greenwich

Goodbye bankruptcy, hello construction loan: Breakthrough for Tribeca hotel project

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

10 Hanover Square (Credit: Google Maps)

FiDi landlord violated rent stabilization regs for years: lawsuit