Related’s Jeff Blau accuses frustrated EB-5 investors of aggressive harassment

Related Companies’ CEO Jeff Blau filed a lawsuit Friday asking a judge to restrain a group of angry EB-5 investors from allegedly hostile activities targeting Blau and his family at his home in New York City. The individuals, seven foreign nationals who are now green card holders through the EB-5 program, are seeking the return of their $500,000 investments made that financed a portion of Related’s construction of the commercial and residential mega project, Hudson Yards. Blau states they are not legally entitled to the repayment at this time.

Case LINK

The Real Deal reported in 2020 that a group of 30 EB-5 investors were seeking to force Related to open its books, fearing they may never be repaid.

A website called EB5Investors.com reported on the start of these actions in January.

The individuals made their investments as equity and not debt in the entity ERY Tenant LLC in 2013 and 2014, so their repayment was not structured with a specific maturity date. ERY Tenant LLC is the ground lessee with the Metropolitan Transportation Authority for a portion of the West Side Rail Yards called the Eastern Rail Yard, which is the multi-block location of Hudson Yards.

According to Blau’s filing, “Plaintiff brings this action for private nuisance, trespass, assault, and civil conspiracy with respect to acts of harassment, intimidation and abuse that Defendants have engaged in through demonstrations and inappropriate conduct outside of Plaintiff’s residence and place of business. Over the past six months, Defendants have repeatedly staged aggressive demonstrations in front of Plaintiff’s primary residence, and at his business, to harass and intimidate Plaintiff.

“For example, on February 3 and February 11, 2024, Defendants staged loud demonstrations in front of Plaintiff’s residence, including at his front door, and subsequently sent text messages and emails to Plaintiff stating, ‘all of your neighbors are already fully aware of your behavior” and demanding $500,000 “or else you’ll see us EVERY WEEK.’

“Indeed, Defendants’ wrongful demands will be adjudicated soon through the arbitration commenced against them,” the complaint says.

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