Kassirer sues Gotlib, Orbach after partner sued Kassirer over $387M deal

Real estate investor Isaac Kassirer, who leads Emerald Equity Group, which at one time was one of the largest multifamily owners in the city, sued two other major property owners, Joshua Gotlib and Meyer Orbach, over an alleged oral agreement related to the financing of a $387 million multifamily purchase from 2022. Kassirer filed his suit two weeks after a partner on the $387 million deal, Gold Wynn Asset Management, sued Kassirer over that same deal.

The court filings underscore the enormous sums of money needed to close transactions and the risks involved in assembling those funds. The filings also provide a window into the world of low-profile investors who bankroll large acquisitions and developments.

Emerald Equity Group amassed thousands of rent regulated units prior to the 2019 rent laws, and the business plans for many of those properties failed after the more restrictive legislation. He turned over virtually the entire portfolio to lenders, as many of the properties faced foreclosure or bankruptcy.

Meanwhile, Black Spruce and Orbach Affordable have acquired thousands of units after the 2019 rent laws. The largest purchase came in 2022.

That year, the New York City real estate press widely covered the $1.75 billion purchase Gotlib, who leads Black Spruce Management, and Orbach, head of Orbach Affordable Housing Solutions arranged for six rental buildings with about 1,700 mostly free market units, from Stefan Soloviev, son of the late developer Sheldon Solow. The transaction was important to the industry since it was the largest multifamily transaction coming out of the pandemic, and it closed as lenders were raising interest rates, the Wall Street Journal reported at the time.

One of the buildings was 685 First Avenue, which closed on September 23, 2022. In the first of the two lawsuits related to the $387.5 million purchase of that building, Gold Wynn Asset Management sued Kassirer and his investment company Titanium Asset Management, alleging they only contributed $750,000 of a promised $13 million related to the funding, as The Real Deal reported last month. Kassirer’s spokesperson told the publication that “We will defend, and counter… [We] welcome the opportunity for the facts to come out.” The plaintiff filed the case, 654285/2024, in Manhattan State Supreme Court on August 21.

Kassirer on September 6, 2024, filed his own action in Manhattan State Supreme Court, 654664/2024 but not against Gold Wynn. Instead he sued Gotlib, Orbach and three entities related to the purchase of the building, 685 Investors LLC, 685 Manager LLC, 685 1st Ave LLC. Kassirer alleges his contacts contributed significant funding and he contributed $1.66 million, and as such, he is owed a one-third share, based on a verbal pledge, he says.

An attorney representing Gotlib and Orbach, Avi Schick of Faegre Drinker Biddle & Reath, said in an email statement to PincusCo, “This lawsuit hasn’t been served. That is not surprising because it appears to be nothing more than a pathetic PR ploy to distract attention from the lawsuit filed against Mr. Kassirer by those who actually did invest alongside GO Partners.” GO Partners is an affiliate of Gotlib and Orbach.

According to Kassirer’s complaint, “Thus, Gotlib, Orbach and Kassirer were to each own a one-third interest in 685 Manager LLC (which is the manager of 685 Investors LLC, the joint-venture entity which owns and controls 685 1st Ave LLC). Nevertheless, Gotlib and Orbach refused to memorialize in a written document their agreement with Kassirer that he owns one-third of the interests in 685 Manager LLC… Gotlib, Orbach and 685 Manager LLC further refused to pay Kassirer one-third of the fees which they collected in connection with the Properties, such as acquisition, financing, preferred equity and/or asset management fees… Gotlib and Orbach thus breached their oral agreement with Kassirer.”

Kassirer did not immediately provide comment.

The surrounding

Within a 400-foot radius of 685 1 Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months. One of those two items was a sale which Black Spruce Management and Orbach Affordable Housing Solutions bought three condo units in the 0-square-foot, 558-unit mixed-use building (RM) on 685 First Avenue and zero other properties for $387.5 million from Solow Realty & Development on September 29, 2022. One of those two items was a loan which Black Spruce Management and Orbach Affordable Housing Solutions borrowed $290.6 million from JPMorgan Chase secured by three condo units in the 0-square-foot, 558-unit mixed-use building (RM) on 685 First Avenue on September 29, 2022.

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