Carlton Group sues Hudson Companies over commission dispute

Howard Michaels’ firm claims it procured $100M in debt and equity for 280 Cadman Plaza

TRD New York /
Jul.July 31, 2017 01:10 PM

From left: Carlton Chairman Howard Michaels, Hudson Principal David Kramer and a rendering of 280 Cadman Plaza (Credit: Marvel Architects)

Howard Michaels’ Carlton Group is suing David Kramer’s Hudson Companies, claiming it’s owed $2.2 million in commissions for arranging financing for the developer’s $470 million library and condominium tower in Brooklyn Heights.

Carlton entered into an exclusive agreement in December to secure equity for the project at 280 Cadman Plaza West, according a lawsuit the real estate banking firm filed in New York State Supreme Court in Manhattan Friday. But after Hudson Companies closed on the financing for the project, it refused to pay the commission, Carlton claims.

A spokesperson for Hudson Companies emailed a statement saying, “This case has no merit and, if necessary, we are prepared to prove that in court.”

Under the terms of the agreement, Hudson would pay Carlton a 2.5 percent commission on the first $40 million in financing it secured, and 2 percent on anything exceeding that figure, according to the lawsuit.

Carlton locked down $80 million in construction financing for the project from the Related Companies’ Related Fund Management for the 36-story, 134-unit project. Starwood Property Trust kicked in an additional $200 million.

The Related fund also kicked in $20 million worth of equity, according to the lawsuit. But Carlton claims that Hudson “has refused to pay” the commission on either the debt or equity funding.

Meanwhile, Carlton said it’s owed a commission on the financing arrangement Hudson hammered out with Related for the 21-story Riverwalk residential building they are developing at 460 Main Street on Roosevelt Island.


Related Articles

arrow_forward_ios
Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation

The agreement was signed today at UBC’s New York Council offices in Manhattan by Nathan Blecharczyk, Airbnb co-founder, Chief Strategy Officer, and Frank Spencer, General Vice President of UBC.

Airbnb hammers out partnership with carpenters’ union

Fotis Dulos (AP Images/ Erik Trautmann)

Connecticut developer Fotis Dulos charged with murder

Pier 40 and Gov. Andrew Cuomo (Credit: Wikipedia and Getty Images)

Cuomo kills Pier 40 redevelopment plan

CW Realty’s Cheskie Weisz  and a rendering of 251 Front Street (Credit: CW Realty and Think Architecture and Design via New York YIMBY)

CW Realty plans luxury rental at controversial Vinegar Hill site

A rendering of Broadway Triangle and an aerial of Broadway Triangle (Credit: Magnusson Architecture via Department of City Planning and Google Maps)

Rabsky, Spencer land $70M refi for Broadway Triangle site

Hudson Companies president David Kramer 

David Kramer on outer-borough development in the 2010s

Renderings of 555 West 38th Street and Rockrose Development's Justin Elghanayan (Credit: Rendering by Pelli Clarke Pelli)

Rockrose lands $255M in financing for Hudson Yards project

arrow_forward_ios
Loading...