Rent-stabilized tenants sue Naftali for allegedly reneging on rent credits at condo conversion

Developer is converting onetime warehouse in Greenwich Village to 61 units

Jun.June 07, 2017 03:20 PM

The Shephard House at 277 West 10th Street and Miki Naftali (Credit: Getty Images)

UPDATED, June 7, 4:34 p.m.: A trio of rent-stabilized tenants at the Naftali Group’s TRData LogoTINY $352 million Shephard condominium conversion in Greenwich Village is suing the developer, claiming Miki Naftali’s firm refuses to pay rent credits he promised them during construction.

The three tenants signed an agreement with Naftali in September that would pay each of them 20 percent of their rents from the time work on the building at 277 West 10th Street started in July 2014, according to a lawsuit filed Wednesday in New York State Supreme Court.

A representative for Naftali refuted the claims.

“We have already fulfilled a generous settlement agreement negotiated with the attorneys representing these tenants and we vehemently refute all of their current allegations, and strongly believe the court will agree that this lawsuit has absolutely no merit,” a spokesperson for the developer told The Real Deal.

The agreement was compensation for inconveniences suffered during construction and approval the tenants granted Naftali to replace air conditioners in their apartments, according to the lawsuit.

The tenants claim they each received checks in October ranging from almost $8,000 to more than $12,600, but haven’t received any credits since Naftali sold a condo containing their apartments in late January to an LLC registered in Nevada for $10.35 million.

The tenants are suing for a total of $1.2 million in compensatory and punitive damages.

Related Articles

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone