Investor in $46M Midtown West office condo sues partner over $1.4M commission, transparency

Investor Edouard Ullmo, who participated in the $46 million purchase in March 2018 of a 56,000-square-foot office condominium unit at the base of the mixed-use condo building 135 West 52nd Street in Midtown West, is suing the deal’s managing partner Beekman Reim and principal Ariel Lahmi, over an alleged $1.38 million commission payment and alleged lack of transparency in the deal. The case was filed in New York State Supreme Court yesterday.

Ullmo and Lahmi did not immediately respond to a request for comment.

Complaint LINK

Beekman Reim is a real estate investment management firm which lists significant properties in New York City, Paris and Chennai.

This suit is another example of wealthy passive investors suing deal makers. Other recent examples include the Wiener family of Canada which invested with Arch Companies and Claudio Soifer who sued Josh Schuster in a case related to a development in Gramercy.

Edouard Ullmo as a 50% limited partner was a party to Beekman Reim’s purchase of the office condo unit at 135 West 52nd Street in March 2018 for $46.05 million, according to the complaint.

According to the complaint, “As part of the initial capital contributions, Plaintiff  [Ullmo] contributed $4,000,000, Beekman Office contributed $3,979,200; and Beekman Reim contributed $20,800. ”

Ullmo in the complaint says he was under the impression that the managing partner, Ariel Lahmi, contributed the other 50% equity, but in fact Lahmi only contributed a fraction.

Following two capital calls during Covid, Ullmo is now an 85% owner, the complaint says.

Ullmo is suing over a commission of $1.38 million allegedly paid to Black Diamond Advisory Group, which the complaint says shares an office with Beekman Reim. That commission, according to the complaint, should not have been paid since the only broker on the deal accoring to the contract was JLL.

According to the complaint, “Unbeknownst to Plaintiff at the time, however, Lahmi had little or no equity stake in Beekman Office whatsoever, which in reality was owned by the Other Investors.

“Lahmi specifically and repeatedly based his demand to secure and thereafter maintain managerial rights over BR [the entity that owns the property] on his false claim that he was an equal partner to Plaintiff in connection with their joint investment in the Property…. In a letter dated November 16, 2023, Lahmi effectively admitted that his prior statements were false, but claimed that he was somehow excused from disclosing the Other Investors because he, in turn, never asked Plaintiff about its investors, which was a complete sham excuse because Plaintiff was transparent about all its equity stakeholders from day one and at all times subsequent thereto… However, to date, neither Lahmi nor Beekman Reim provided any proof whatsoever that Black Diamond performed any services in connection with the transaction, brokerage or otherwise”

Direct link to the property’s ACRIS page.