Courts roundup: Tessler, Trader Joe’s, Haruvis, SoHo condo

Tessler Development and Cornell Realty Management sue Trader Joe’s: Tessler Development and Cornell Realty Management allege grocer Trader Joe’s has not commenced paying rent at the commercial property at 206 Kent Avenue in Williamsburg, Brooklyn, and they are owned $5 million. According to the complaint the retailer has not paid rent since opening in 2021, citing alleged construction delays.

Court filings represent the positions of one party and are not necessarily accurate or complete.

According to the complaint, “The parties entered into a written lease agreement nearly eight (8) years ago, and Trader Joe’s has been operating its successful retail business at the property since December 2021. Despite the foregoing, Trader Joe’s has yet to pay Petitioners a single dollar of rent, claiming it is entitled to a “rent credit” as a result of alleged construction delays.
“After the parties’ discussions to resolve their differences broke down, Petitioners served Trader Joe’s with a notice of default in anticipation of litigation, in which they seek to recover back rent and other amounts due under the Lease in excess of $5 million. Pursuant to a written Lease agreement dated June 9, 2015, as amended by a First Amendment of Lease dated September 19, 2016, and a Second Amendment of Lease dated May 2, 2019, Petitioners agreed to lease certain commercial property in Williamsburg, Brooklyn to Trader Joe’s for a fifteen-year term. See Ex. 3 (Lease). On February 10, 2023, Trader Joe’s purported to commence the Arbitration against Petitioners before the American Arbitration Association, Case No. 01-23-0000-5964. In its Demand for Arbitration, Trader Joe’s asserts three claims for a declaratory judgment. Those claims arise out of a dispute regarding (i) the Rent Commencement Date under the Lease as determined by Section 4(a)(ii) of the Lease, (ii) “punch list” costs allegedly incurred by Tenant that it seeks to recover from Landlord pursuant to Section 4(g) of the Lease, and (iii) cleanup costs allegedly incurred by Tenant following a “flood” in the Premises. See generally Ex. 2. None of these claims have anything to do with the matters that are subject to the arbitration clause.” LINK

Michelle Haruvi sues over alleged improper $139M sale: Michelle Haruvi is suing her father Arthur Haruvi and investor Peter Hungerford and seeks to void a $139 million sale to entities controlled by Peter Hungerford. This is another in a series of lawsuits related to the division and management of the valuable portfolio among family members.      LINK

570 Broome Street condo sues sponsors: The condominium board of 570 Broome Street in Soho is suing the sponsors of the condo, including Agime Group and others, alleging construction problems and other issues. the building well, and alleges a series of problems with the property. The condo, which is ground-up new construction, is a 25-story building with 54 residential units and one commercial unit. The total value of sponsor’s initial offering for the 54 residential units was $148,870,000. All residential units have been sold, according to the complaint. LINK

Direct link to the property’s ACRIS page and link to DOB NOW portal.