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

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

1680 Madison Avenue and Ron Moelis

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
Renderings of The William Vale and Denizen Bushwick with a Tel Aviv Stock Exchange ticker

All Year eyes sale of William Vale to pay off bonds

Breather CEO Bryan Murphy (Credit: LinkedIn and iStock)

Breather bloodbath: Flex-office startup fires 17% of staff

Ron Moelis of L + M Development Partners (Credit: iStock)

L+M to pay $25,000 penalty for unreported lobbying

Stephen Levin, REBNY's Jim Whelan and Brad Lander (Credit: Getty Images)

The bill that won’t die: Will commercial rent control finally pass?

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

From left: Brookfield's Ric Clark, 3333 Broadway and L+M's Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

L+M, Invesco close on Putnam portfolio with $823M in Wells Fargo financing

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

arrow_forward_ios