Courts roundup: Two stalled sales, one Brooklyn investment partnership dispute

Stalled $6.75M mixed-use sale in NoMad: The purchaser, which remains anonymous through the Delaware company 28th Street Holdings LLC, alleges the seller of the mixed-used building at 127 East 28th Street in Nomad, Manhattan, has not conformed with the sale contract as it relates to residential and commercial leases. The buyer notified seller it would not appear at the closing, scheduled for December 23, 2022, but was willing to close if the contract issues were resolved.
Court filings represent the positions of one party, and are not necessarily accurate or complete.
The mixed-use building with five residential units in NoMad has 6,021 square feet of built space and 4,106 square feet of additional air rights for a total buildable of 10,131 square feet according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 78 feet deep with a total lot size of 1,683 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.4 million. LINK

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

Brooklyn investment partnership dispute: The Long Island-based investment firm Cedar Grove Capital Partners and its founder Aaron Gorin allege the company has invested substantial sums in Zachary Ehrlich’s real estate investment firm Neue Urban and a plan to acquire five properties but Cedar Grove has lost money in that pursuit. In addition, the complaint alleges that Ehrlich will not provide access to records.  The properties the partnership intended to buy are 248 Driggs Avenue, 104 President Street, 331 Tompkins Avenue, 1467 Bedford Avenue, 408 Myrtle Avenue. They did buy 248 Driggs, for $3.3 million. 104 President, 331 Tompkins and 408 Myrtle are all subjects of sale contract litigation.
According to the Cedar Grove complaint, “This action stems from Plaintiffs’ investment of hundreds of thousands of dollars in connection with plans to acquire various properties in Brooklyn, New York. As detailed below, these investments… have essentially vanished. Moreover, Defendant Zachary Ehrlich has refused to furnish Plaintiffs with any information about any of the entities at issue, leaving Plaintiffs in the dark for months now as to the status of their development, or the deployment of the cash invested… Plaintiffs are done waiting, and bring this action to ensure and insist that Defendants are held to account, and that they be granted access to review all relevant books and records with respect to the Properties.” Gorin through CGCP committed to contributing 80 percent of cash equity on those deals, the complaint says.
LINK

Neue Urban alleges seller has not conformed to $2.85M contract: Neue Urban alleges it signed a contract to buy 408 Myrtle Avenue in Clinton Hill, Brooklyn, for $2.85 million, but the sale has not been consummated. The parties signed a sale contract on December 3, 2021, but according to this complaint, the seller has not adhered to the agreement, and so the buyer does not want to close until those items conform to the agreement. Joel Gorjian is also a signatory as the contract vendee, but is not in the litigation. The mixed-use building with two residential units in Clinton Hill has 3,775 square feet of built space and 2,791 square feet of additional air rights for a total buildable of 6,568 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 1,642 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2 million. LINK