Arch Companies, led by Jeffrey Simpson, sued Meir Babaev’s AB Capstone last week seeking to take control of their joint venture project Myrtle Point, at 3-50 St. Nicholas Avenue in Ridgewood, Queens. The project topped out in December, according to an article from YIMBY at the time. Arch laid out a series of causes of action supporting its complaint, filed February 15. LINK
According to the complaint, “The project Myrtle Point, was designed to be a 17-story mixed use building with a four-story retail podium and 13 floors of residential units at 3-50 St. Nicholas Avenue in Ridgewood with ground floor retail space and significant affordable housing set asides.
“Plaintiffs bring this action to enforce their rights under a joint venture agreement and three pledge agreements Defendants entered to secure B3 Ridgewood’s financial obligations in a joint venture for the development of a mixed use real estate project known as Myrtle Point. Meir Babaev encouraged MPJV to invest substantial equity and credibility into Myrtle Point.”
Arch Companies alleges Babaev misrepresented the financial health of the development. Court filings represent the position of one party, and are not necessarily accurate or complete. AB Capstone has not yet filed a response in court.
Harry Karten sues Josh Schuster over $5.7M Gramercy condo investment: Harry Karten alleges he was not informed of critical information related to the financing of the condominium development at 250 East 21st Street in Gramercy, Manhattan. Karten, according to the complaint, invested $5.7 million in the project with the understanding he would get an approximately 19.9 percent indirect interest. Karten later learned of alleged defaults, and because of those defaults that his investment was worth significantly less. He is suing
Another investor, Claudio Soifer, brought a suit against Schuster in 2021 related to this development, 654475/2021. Despite the litigation, the project is selling well, according to documents filed in Soifer case.
According to the complaint, “Had [Karten] known about the existence of the Notes, the Security Pledge, any default of the Notes and Security Pledge, the possibility that SD Manager did not own an 83.79% interest in JVEM Silverback, that its investment might not result in it indirectly owning a 19.91% interest in SD Venture, and that SD Manager had defaulted on the Lettire Note and owed $1,500,000 plus interest, it would not have entered into the SD Manager LLC Agreement, the MIPA, paid $5,000,000 for a 48% interest in SD Manager, or paid an additional $718,344 in capital contributions to the Project.”