Courts roundup: $14M W’burg dev site contract; Investor sues All Year; C-III sues DiamondRock

Double U in contract to pay $14.1M for Williamsburg dev site: Michael Weitzman of Double U Realty is in contract to pay $14.1 million to the Roman Catholic Church for a development site at 96 South 9th Street, 98 South 9th Street, 100 South 9th Street in Williamsburg, according to a court petition. The purchase price is $14.1 million, according to the April 1, 2022 purchase and sale agreement, disclosed in the petition seeking the New York State Attorney General’s approval to sell, which is a process for nonprofit and religious organizations to sell significant assets. According to the petition, the land is: “The (i) former rectory building located on Parcel I and (ii) former church and parish hall buildings located on Parcel III (collectively, the “Building”), including all fixtures, equipment, systems and improvements owned by Seller located on the Land or used in connection with the aforesaid Building (collectively, the “Improvements”). Parcel II consists of vacant land.” According to the filing, “the Closing Date. The purchase and sale of the Property shall close the later of: (i) seventy-five (75) days from the Effective Date hereof or (ii) thirty (30) days from the date Seller’s counsel notifies Purchaser’s counsel via electronic mail, of Seller’s receipt of all Approvals (the “Closing Date”), as evidenced by the delivery of the Closing Documents as set forth in Section 8 of this Agreement (the “Closing”). Purchaser shall have the right to extend the Closing Date an additional fifteen (15) day period (the “Outside Closing Date”).” The brokerage firm, according to the petition, was JLL. Steven Rutman of JLL has a listing for the property, “The Site presents an investor the opportunity to develop up to a 42,525 ZSF residential building in a prime Brooklyn submarket.” LINK

Investor sues All Year over alleged stake in Bushwick rental: Plaintiff Martin Ehrenreich alleges he provided $1.05 million to All Year Management in exchange for a stake in the Bushwick properties, 527 Knickerbocker Avenue and 533 Knickerbocker Avenue. The buildings have a loan with an original principal of $8.4 million, given in 2018. Plaintiff Martin Ehrenreich alleges All Year Management is in discussions to sell the property, which Ehrenreich believes will harm him. According to the complaint, “The Defendants, collectively, voluntarily, and willfully retained Plaintiff’s investment but have egregiously failed to uphold their obligation to the Plaintiff, i.e., make him a shareholder and provide the distributions in accordance with the profits and losses of Knickerbocker.” LINK

C-III Capital sues DiamondRock for $3M, alleging undisclosed union costs: C-III Capital Partners, an affiliate of Island Capital Group alleges that the former owner of the 511 Lexington Avenue hotel did not disclose a union side agreement which C-III calculates will cost it an additional $463,229 per year, or when capitalized, a total of $3.5 million. C-III paid $183.5 million to DiamondRock Hospitality for the hotel in June 2021.  LINK

Affordable developer in contract for Harlem townhouse: MLappin & Associates, an affordable housing development firm led by Michael Lappin, signed a contract to buy 154 West 122nd Street, a four-story, 3,952-square-foot townhouse from the nonprofit Hale House Center. Hale House, a once-renowned nonprofit that cared for infants with AIDS, was engulfed in scandal in 2001, according to an article in the Daily News,  and the entity changed focus, but in recent years could not obtain necessary financing, thus precipitating this sale. LINK