Sheldon Solow sued by another 57th Street tenant who refuses to go quietly

MacKenzie-Childs wants an $800K lease termination fee

New York /
Jan.January 03, 2018 11:55 AM

MacKenzie-Childs at 20 West 57th Street and Sheldon Solow (Credit: Getty Images)

MacKenzie-Childs, a purveyor of hand-painted ceramics and colorful home goods, is the latest of Sheldon Solow’s tenants to mess with the octogenarian developer’s plans for a Billionaires’ Row condominium tower.

The retailer, which has leased a storefront at Solow’s 20 West 57th Street since 2012, is suing the developer over nearly $800,000 it says it’s owed for its lease being terminated four years before it’s due to expire.

Solow, who has spent years assembling the site of of a planned hotel and condo tower at 10 West 57th Street, informed MacKenzie-Childs in March 2017 that it planned to end its 10-year in September 2018, according to the lawsuit. When MacKenzie-Childs said it was owed an early termination fee of $769,931, the suit said Solow hit the store with a breach of contract claim, alleging the retailer never submitted documents showing it had final approvals for the store’s buildout back in 2012.

MacKenzie-Childs, which pays $90,833 a month for the 3,700-square-foot ground-floor space, plus a 1,500-square-foot mezzanine floor, spent $1.8 million to renovate the space in 2012, according to court documents.

In the complaint, the retailer said Solow never requested the documents previously and instead collected its rent for 59 consecutive months. “Landlord’s demands for these documents is a transparent and wrongful attempt to terminate the Lease Agreement,” it said.

Solow is also battling Metropolitan Fine Arts and Antiques, the long holdout tenant at 10 West 57th Street, where SOM is designing a 54-story hotel and condo tower.

Last year, Solow tried to terminate the store’s lease, claiming it violated terms of the agreement by selling ivory. But Metropolitan, which pays $283,000 a month in rent, claimed the developer put up scaffolding to force the store out.

The famously litigious developer bought the first parcel of the assemblage in the 1970s, and added two more parcels in 2007. In 2016, he paid Gary Barnett $128 million for 16 West 57th Street.

The mogul, who is worth around $4.7 billion, according to Forbes, is also developing a 19-story residential project at 7 West 57th and a 42-story rental-and-condo project at 685 First Avenue.


Related Articles

arrow_forward_ios
Almanac Realty Investors managing director Matthew Kaplan (Almanac Realty; iStock)

Workforce housing investor gets $320M boost

Workforce housing investor gets $320M boost
Corcoran to sublet 50K sf in IBM Building

Corcoran to sublet 50K sf in IBM Building

Corcoran to sublet 50K sf in IBM Building
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Union Square Park to gain 2 acres in $100M plan (Getty_

Union Square Park to gain 2 acres in $100M plan

Union Square Park to gain 2 acres in $100M plan
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
arrow_forward_ios

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

Loading...