Moinian Group files $84M suit to protect FiDi ground lease

The Moinian Group filed an $84 million lawsuit in Manhattan State Supreme Court to protect a valuable Lower Manhattan ground lease that was under threat of termination for the second time in three years, court records filed last month showed. The lease could be terminated as early as July 14, but Moinian held on the last time the lease was challenged by the landlord.

An affiliate of Joe Moinian’s Moinian Group, JDM Washington Street LLC, filed the suit June 30 against entities of the Katz family that own the fee at 90 Washington Street, a 397-unit apartment building at the corner of Rector Street, that secures a $74.8 million loan from Fannie Mae. The building is 27 stories and approximately 335,114 square feet and is two blocks south of the World Trade Center complex. The ground lease runs through April 20, 2066.

Moinian seeks a temporary restraining order and a Yellowstone injunction, which would block the immediate threat of ground lease termination. A Yellowstone injunction preserves the status quo of the lease while the litigation continues.

The Katz entities sent a 60-day notice of lease termination on May 4, alleging lease violations, including that Moinian was supposed to have completed certain facade work by April 30, 2021. The notice includes a list of complaints related to the facade. The Moinian Group did not immediately respond to a request for comment.

Moinian bought the leasehold in 2003 for $35 million from Tamir Sapir.

This is the second court case the Moinian Group has filed since 2019 related to the ground lease. At that time, the company sued after the Katz owners sent a notice of termination of the ground lease in 2018. Moinian won several rounds of motions and retained the ground lease, but was required to perform certain work by April.

Court case: LINK

Direct link to Acris document. LINK