Hotel developer sues neighbor, alleging a shakedown

The project needs a license agreement from the owner

New York /
Aug.August 31, 2018 05:00 PM

A rendering of 50 Trinity Place and a photo of a gavel and dollar bills (Credit: Peter Poon Architects iStock)

Resistance from neighboring landlords is stalling some developments.

Trinity NYC Hotel LLC said hasn’t been able to secure permissions from its neighbor to begin work on an Aloft-branded hotel, Crain’s New York reported. The company purchased the vacate site at 50 Trinity Place for $15 million in 2012 with plans for a 173-room hotel.

In a lawsuit, Trinity NYC Hotel claimed William Koulmentas, the owner of 11 Rector Street, has asked for unreasonable sums of money pay to protect the site — a three-story building which houses George’s Diner — with things like netting. The city mandates that developers need to protect adjacent buildings from damage, the report said.

To do so, the developers need neighboring landlords to grant a license agreement that allows access to the property. But owners have started charging for it, Crain’s reported.

Trinity NYC Hotel suit alleges it offered $10,000 to its neighbor at the beginning of the year but the owner refused — and later demanded $300,000. The developer said it agreed on $50,000 but the owner wouldn’t budge below $250,000. [Crain’s] — Meenal Vamburkar

 

Related Articles

arrow_forward_ios
A rendering of the project at 1 Park Row in the Financial District.
L.A.-based lender puts FiDi project into construction with $120M loan
L.A.-based lender puts FiDi project into construction with $120M loan
470 Broome Street  and Rayo Withanage (Photos via Saltzman Architects, P.C. and Withanage)
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
Ziel Feldman and the XI. (Getty, The Xi)
Investor alleges HFZ diverted funds to save XI condo project
Investor alleges HFZ diverted funds to save XI condo project
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
102-05 Ditmars Blvd (Google Maps)
Queens hotel wins massive tax reduction
Queens hotel wins massive tax reduction
Hartz Mountain Industries CEO Leonard Stern and 235 Pinelawn Road (Google Maps, Hartz Mountain)
Warehouse developer accused of violating “Long Island First” policy
Warehouse developer accused of violating “Long Island First” policy
The property at 235 West 102 Street (Google Maps, iStock)
UWS landlord fights millions in tax overcharges on unused cellar
UWS landlord fights millions in tax overcharges on unused cellar
arrow_forward_ios

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

Loading...