Riese family sues Vornado over Crowne Plaza ground lease, seeks $15M
The Riese family, is claiming Vornado Realty Trust and Argent Ventures are colluding to not pay property taxes and maintain the property free of liens as a scheme to pressure the Riese family. The Riese family is seeking up to $15 million in damages.
There are $11.5 million in taxes due and Riese claims it is owed $1.8 million in back rent. The Riese family signed a lease with the original developers of the Crowne Plaza Hotel, the Zeckendorfs, in 1986. That parcel was combined into the 795-unit hotel.
“On information and belief, Times Square JV [Vornado] is actively colluding with Mortgagee [Argent] to run the Times Square Property into the ground in order to gain leverage over its landlords, including the Riese Family… This subterfuge is draining much of value of Riese Property by allowing enormous obligations to accrue against the Riese Property, in violation of the lease, and subjecting the Riese Property to a sheriff’s sale.”
Argent Ventures bought the loan in December 2020 at a steep discount, reported to be a sale price of $90 million. The loan had an original principal of $195 million.
The Riese family is a long-time owner of retail-centric properties going back decades.
Last month, SL Green Realty paid $121 million for a portion of the fee under the hotel, that was previously owned by the Walter & Samuels investors and the Friedland family. SL Green is not named in the suit.
-Adam Pincus