Eastern Consolidated sues for commission on 2017 office lease

Landlord David Ishay owes $74K, according to brokerage’s lawsuit

TRD New York /
Aug.August 29, 2018 03:40 PM

Peter Hauspurg and Daun Paris of Eastern Consolidated and 38 West 39th Street (Credit: Google Maps)

Eastern Consolidated may be disbanded, but its receivables account is still very real.

The brokerage is suing landlord David Ishay, claiming it is owed roughly $74,000 in commission for negotiating a lease at the owner’s Bryant Park-area office building in early 2017.

Eastern was the sole broker that hammered out the 10-year lease between tenant GIT Group and Ishay – not to be confused with the David Ishay of Gotham Realty Holdings – at the landlord’s 38 West 39th Street in January 2017, according to a complaint the brokerage filed Tuesday in Manhattan Supreme Court.

But Eastern, which was a player in the world of middle-market brokerage before it closed its doors this summer, claims that “to date, no portion of the brokerage commission due . . . has been paid.”

A representative for Eastern declined to comment, and Ishay did not respond to a request for comment.

In office leases, brokers are generally paid a portion of the commission when the lease is signed, and the remainder when the tenant takes possession of the space.

But it looks like GIT Group, a real estate development firm founded in 2007 by Benny Bern and Olivier Fajga, was delayed in taking possession of the space, due to a dispute with its landlord.

Soon after the ink dried on the lease, GIT said that Ishay “failed and refused” to sign off on building application and plans the tenant needed in order to build out its space.

GIT claims that Ishay approached the company in February about walking away from its lease. The landlord was having trouble getting a loan for the property it had leased too much space in the building to one tenant, GIT claims in court papers.

Ishay served GIT with a notice of default in March of last year for allegedly failing to comply with proper building procedures, and GIT filed a lawsuit against its landlord seeking an injunction.

The two sides reached a settlement in court in May 2017, and it now appears that GIT occupies the space.

Representatives for GIT did not immediately respond to a request for comment.

Eastern closed its doors in July after nearly four decades in business during a tumultuous time in the commercial real estate business. A number of its top brokers have since found new homes.


Related Articles

arrow_forward_ios
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz (right) with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Photo illustration of Sen. Brian Kavanagh (Credit: Kavanagh by Albin Lohr-Jones/Pacific Press/LightRocket, Getty Images, iStock)

Lawmakers skip #CancelRent in favor of more modest bills

Lawmakers skip #CancelRent in favor of more modest bills
The process for challenging property assessments is so antiquated, officials won’t do Zoom meetings. (iStock)

“A recipe for disaster”: Fighting property taxes in a pandemic

“A recipe for disaster”: Fighting property taxes in a pandemic
Andrew Florance, CEO of CoStar (Photo by Jeffrey MacMillan for the Washington Post)

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts
An institutional investor’s sale of a 7 percent stake in an exchange-traded real estate fund reveals deep concerns about the sector. (Credit: iStock)

Mystery investor dumps big stake in real estate fund

Mystery investor dumps big stake in real estate fund
Thor Equities’ big bet on Fulton Market is paying off

Thor Equities’ big bet on Fulton Market is paying off

Thor Equities’ big bet on Fulton Market is paying off
arrow_forward_ios

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

Loading...