Eichner gets reprieve in power struggle over Flatiron condo project

Court grants developer preliminary injunction preventing partners from removing him as project manager

New York /
Apr.April 12, 2018 05:58 PM
Bruce Eichner and 45 East 22nd Street

Bruce Eichner and 45 East 22nd Street

Ian Bruce Eichner scored a win in his battle with partners Fortress Investment Group and Dune Real Estate for control of their Flatiron District condominium tower.

A Manhattan Supreme Court judge granted Eichner a preliminary injunction that prevents Fortress and Dune from removing him as the project’s manager in the event they declare a default under the joint-venture agreement, court records show.

Justice Barry Ostrager ruled that Fortress and Dune had taken certain actions that would cause a default, and that “the balance of hardship tips decidedly in favor” of Eichner in the case.

Eichner, who heads the Continuum Company, had argued that he was in danger of defaulting under the JV agreement because his partners withheld construction funds necessary to complete the 83-unit, $700 million project at 45 East 22nd Street. He also claimed that his equity was in danger of being wiped out if he were removed as manager.

In court last week, Eichner’s attorney questioned the developer about his relationships with Fortress and Dune.

Treasury Secretary Steve Mnuchin (Credit: Getty Images)

Fortress, Eichner pointed out, had advanced him $300 million to purchase his Cosmopolitan casino in Las Vegas, which he lost during the Great Recession. Dune, he added, provided the mezzanine capital for the project.

“The guy who did that deal is currently a somewhat notable character,” Eichner noted. “His name is Steve Mnuchin and he is currently the Treasury secretary.”

Attorneys for Eichner, Fortress and Dune declined to comment.

Eichner was in attendance Tuesday night when Newmark Knight Frank broker Geoffrey Newman won a Real Estate Board of New York award for his work assembling the site for the Flatiron development.


Related Articles

arrow_forward_ios
Leslie Alexander with 1117 Main Road in Riverhead (top) and 2045 Sound Avenue in Mattituck (Getty, Compass)
Leslie Alexander lists pair of North Fork properties with development rights
Leslie Alexander lists pair of North Fork properties with development rights
(Photo Illustration by The Real Deal with Getty Images)
Office occupancy stalls after Labor Day push
Office occupancy stalls after Labor Day push
A photo illustration of 1776 Nostrand Avenue (Getty Images, Google Maps)
Flatbush landlord sentenced in deadly space heater fire
Flatbush landlord sentenced in deadly space heater fire
Tankhouse’s Sam Alison-Mayne with 452 Union Street (Facades Plus, Google Maps, Getty)
Multifamily deals dominate strong week of NYC i-sales
Multifamily deals dominate strong week of NYC i-sales
Steve Roth and renderings of 260 11th Avenue (Getty, Profile New York)
Vornado lays out vision for Otis Elevator Building complex
Vornado lays out vision for Otis Elevator Building complex
From left: Arch Companies' Jeff Simpson and Hello Living's Eli Karp along with a rendering of 1580 Nostrand Avenue (Getty Images, Arch Companies, Hello Living)
Eli Karp’s Hello Living says goodbye to Flatbush project
Eli Karp’s Hello Living says goodbye to Flatbush project
A photo illustration of Daniel Brodsky and 75 West End Avenue (Getty Images, Google Maps)
Brodsky brings challenge to NYC Airbnb law
Brodsky brings challenge to NYC Airbnb law
(Illustration by The Real Deal with Getty)
How illegal Airbnbs slip through the cracks
How illegal Airbnbs slip through the cracks
arrow_forward_ios

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

Loading...