Peebles and Elad settle their spat over Clock Tower project in Tribeca
Partners to continue joint development
The Peebles Corporation and Elad Group settled a legal dispute that threatened to derail their $400 million-plus Clock Tower condominium conversion in Tribeca, the companies announced Wednesday.
Peebles will keep its minority stake, while Elad “will continue managing the development,” a spokesperson said, declining to comment further.
Peebles sued Elad in January for $125 million, alleging that the Israeli development firm cheated it out of its right to sell its stake. Elad countersued in March, alleging Peebles refused to okay an offering plan in an attempt to strong-arm its partner.
The two firms bought the 400,000-square-foot landmarked former court building at 346 Broadway from the city for $160 million in 2013. Elad took a 65 percent stake and Peebles owned the rest. They planned to turn the property into 151 condos, but the project soon ran into trouble.
In April 2016, a judge ruled that the developers could not turn the building’s clock into an electric machine, ending plans to turn the building’s top floors into apartments. Peebles then announced it planned to exercise a so-called put option, which would force Elad to buy out its partner. Elad blocked the move, according to Peebles. Lawsuits ensued.
The legal drama morphed into a threat to the project: Loan agreements require the developers to sell 35 units by Aug. 2, 2018. And if the projected isn’t completed within five years of the sale, the city could take back the property.