The Real Deal New York

Billionaire Noam Gottesman sued over $89M sale of West Village warehouse

Harch Group claims it was squeezed out of deal
October 30, 2018 11:08AM

771 Washington Street, Noam Gottesman (left), and Harry Jeremias (right) (Credit: Google Maps and Wikipedia)

The Harch Group claims billionaire Noam Gottesman pushed it out of a plan to redevelop a warehouse in the West Village and then sold the property without consulting the company.

Harch principal Harry Jeremias filed a lawsuit against Gottesman and Toms Capital, alleging that his former partner “duplicitously torpedoed” their joint venture that was supposed to redevelop 771 Washington Street, Bloomberg News reported. Jeremias got Toms Capital to back the $71 million purchase of the 21,000-square-foot property in 2015 with plans to redevelop the property.

Toms Capital had control over the project, but Jeremias claims he negotiated terms that would shield him from his partner’s failure to realize the property’s full potential. Their joint venture agreement, however, was never signed, according to the lawsuit.

In July, Gottesman sold the building to Winter Properties for $89 million. Jeremias wasn’t notified about the sale until after it closed, according to the lawsuit. The complaint accuses Gottesman of breach of contract, unjust enrichment and fraud.

“We believe the suit is completely without merit and it’s going to be vigorously defended,” Alejandro San Miguel, partner and general counsel for Toms Capital, told Bloomberg. [Bloomberg] — Kathryn Brenzel