Courts roundup: Related sues Furnished Quarters; Eckstein sues Pinnacle Group, more

501 9th Avenue (Credit - Google)

Related sues Furnished Quarters for $2.45M: Related Companies alleges Furnished Quarters owes $2.45 million in unpaid rent and fees, after falling behind on more than 80 units in nine buildings during covid.

Court filings are the positions of one party and are not necessarily accurate or complete. Furnished Quarters has not yet filed response papers.

According to the complaint, “Upon information and belief, Furnished Quarters is in the business of providing furnished apartments to business and leisure travelers, as well as other renters, in New York City and other locations… Under the terms of the Leases, the Landlords agreed to lease the relevant apartment units to Furnished Quarters for a specified period of time, provided that Furnished Quarters fulfilled its contractual obligations, including the payment of rent each month… Between approximately May 2020 and August 2021, Furnished Quarters sent wire transfers in lump sums… as payment towards the amounts due for various units. Related then applied these lump sums to the outstanding balances for various individual apartments, yet these wire transfer payments fell well short of the amounts due under the Leases… The Statement of Outstanding Balance Due reflected a total outstanding amount of $2,167,319.47 for 81 delinquent units, as of October 31, 2021. A copy of the Statement of Outstanding Balance Due… appears on the following page.” LINK

Erik Eckstein sues Pinnacle Group for $5M following $48M HY sale: Erik Eckstein of Eckstein Development Group alleges he was a partner in the ownership of five parcels from 485 9th Avenue to 505 9th Avenue in Hudson Yards, in a venture with Joel Wiener’s Pinnacle Group, created in 2018, and remains a partner in one of the properties, following the May 10, 2022, $48 million sale of four properties to ZD Jasper Realty. The complaint alleges Pinnacle Group sold four of the properties without proper notice to Eckstein. They retain ownership of 493 9th Avenue the complaint says.
Court filings are the positions of one party and are not necessarily accurate or complete. Pinnacle Group has not yet filed response papers.

According to the complaint: “By letter dated January 4, 2021, [Pinnacle Group] noticed a required capital contribution or a capital call pursuant to a bank refinancing under section 7.1(b) of the HZ Operating Agreement (the “2021 Capital Call”). The 2021 Capital Call was not served in accordance with Section 17.2 and Exhibit A of the HZ Operating Agreement, which requires all notices to members be sent to each member and their respective counsel. The 2021 Capital Call was only sent to E&T 9 LLC, [Eckstein Development] not to its counsel as required by the HZ Operating Agreement. Accordingly, the notice was defective, null and void and of no force and effect and was treated as such by Plaintiff. Two days after the 2022 Capital Call, by letter dated March 16, 2022, H9 LLC notified E&T 9 LLC that it was electing to dilute its membership interest as a result of the 2021 Capital Call pursuant to section 7.2(d)(ii) of the HZ Operating Agreement (the “Dilution Notice”). The Dilution Notice was copied to E&T 9 LLC’s counsel as required under the HZ Operating Agreement – evidence that the Hudson Defendants are aware of the requirement to serve copies of all notices on counsel (despite their failure to do so with the prior defective notices).” LINK

UWS co-op sues owner of neighboring landmarked property over party wall: The cooperative at 160 Riverside Drive is seeking a judgment that the Yeshiva Ketana of Manhattan is in part responsible for the repair and maintenance of a party wall they share. The filing is only a summons and does not indicate a specific amount of money. The Yeshiva owns the former mansion at 346 West 89th Street, the Isaac L. Rice House, designated by the city as an Individual Landmark, which is the property directly north of the co-op building. LINK

 

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