Nonprofit files suit to block sale of East Harlem building to L+M

Nuevo El Barrio claims it should get right of first refusal for 1680 Madison

New York /
Jun.June 12, 2017 05:16 PM

UPDATED, 10:31 a.m., June 13: East Harlem Housing nonprofit Nuevo El Barrio is suing in an effort to stop L+M Development Partners TRData LogoTINY from buying a 135-unit Rental Building On Madison Avenue, claiming it should have the opportunity to purchase the property first.

The property at 1680 Madison Avenue is owned by Los Tres Unidos Associates, an entity affiliated with Metropolitan Realty Group.

Los Tres informed N.E.R.V.E in March that it had a buyer for the building, according to a lawsuit filed in the New York State Supreme Court Monday. L+M is the buyer, according to the suit.

N.E.R.V.E — a group formed in 1975 to improve housing in East Harlem — claims it has had partial ownership of the entity that owns the property since the 1980s, and has the right of first refusal (ROFR) to buy it. The complaint states that N.E.R.V.E said it wanted to buy the building, and would match L+M’s offer.

However, Los Tres claims that, as L+M is buying also buying another property, N.E.R.V.E would have to buy both properties to exercise its ROFR.

The organization disagrees and wants the court to stop the sale until N.E.R.V.E has been offered the opportunity to purchase the property
“upon the same term and conditions” as any other offer.

L+M is a major developer of affordable housing in the city. Crain’s recently reported on the close relationship between L+M co-founder Ron Moelis and Deputy Mayor Alicia Glen. Since Glen took office, L+M has started 13 affordable housing projects. Glen has also helped Moelis get access to other parts of city government.

“N.E.R.V.E’s concerns are that it doesn’t know what another entity plans would be in terms of preserving the project as affordable housing,” said Roger Maldonado of Smith, Gambrell & Russell, a lawyer for the nonprofit.

Lawyers for Los Tres were not immediately available for comment. L&M declined to comment through a spokesperson.


Related Articles

arrow_forward_ios
Clockwise from top left: Seattle, Boston and New York City (Photo Illustration by Kevin Rebong for The Real Deal)
Real estate prices fell more in Manhattan than anywhere else in 2020
Real estate prices fell more in Manhattan than anywhere else in 2020
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
Related’s Stephen Ross and 265-275 Cherry Street (Google Maps; Getty)
NYC investment sales showed signs of recovery at end of 2020
NYC investment sales showed signs of recovery at end of 2020
Tishman Speyer CEO  Rob Speyer and The Spiral as seen on January 21, 2021 (Photos via Getty Images; Illustration by Kevin Rebong)
Tishman Speyer’s half-empty Hudson Yards tower tops out
Tishman Speyer’s half-empty Hudson Yards tower tops out
Tishman Speyer CEO Rob Speyer and Latch CEO Luke Schoenfelder (Getty; Latch)
Latch to go public via Tishman Speyer’s SPAC
Latch to go public via Tishman Speyer’s SPAC
(Photo illustration by The Real Deal)
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
Freshly CEO Michael Wystrach and 28 East 28th Street (Photos via Twitter; Google Maps)
Freshly inks big lease in NoMad
Freshly inks big lease in NoMad
From left: Isaac Zion with JMC Holdings' Matthew Cassin (left) and David Taylor (right) (Photos via SL Green; JMC)
Former SL Green exec Isaac Zion joins Acram Group
Former SL Green exec Isaac Zion joins Acram Group
arrow_forward_ios

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

Loading...