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
From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

These developers could benefit the most from Soho’s rezoning

These developers could benefit the most from Soho’s rezoning
Extell Development's Gary Barnett and 32 West 48th Street (Google Maps)

Extell makes its Diamond District hotel official

Extell makes its Diamond District hotel official
The Grand Hyatt Hotel at 109 East 42nd Street and and  RXR’s Scott Rechler (Wikipedia Commons; Getty)

Grand Hyatt redevelopment could be 1,600-foot supertall

Grand Hyatt redevelopment could be 1,600-foot supertall
CoStar’s Andrew Florance and Homesnap’s John Mazur (CoStart; LinkedIn)

CoStar to acquire Homesnap for $250M

CoStar to acquire Homesnap for $250M
From top: Park Place Mall in Tucson, AZ with Brookfield Property Partners CEO Brian Kingston; Westfield Countryside in Clearwater, FL with Unibail-Rodamco-Westfield CEO Christophe Cuvillier; and The Mall at Tuttle Crossing in Dublin, OH with Simon Property Group CEO David Simon (Google Maps, Westfield, Simon, Getty)

These are the biggest malls landlords ready to hand over to CMBS lenders

These are the biggest malls landlords ready to hand over to CMBS lenders
(iStock)

Ski resorts gear up for tough season in the shadow of pandemic

Ski resorts gear up for tough season in the shadow of pandemic
From left: 555 California Street in San Francisco, Vornado CEO Steven Roth and 1290 Sixth Avenue in Manhattan (Photos via Wikipedia Commons; Getty; Trump Org)

Vornado halts sale of office towers co-owned with Trump

Vornado halts sale of office towers co-owned with Trump
The Grace Building at 1114 Sixth Avenue (Photo via Wikipedia Commons)

Here’s what tenants are paying at Brookfield & Swig’s Grace Building

Here’s what tenants are paying at Brookfield & Swig’s Grace Building
arrow_forward_ios

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

Loading...