Jan 18, 2011

Landlord Sues Tenants Over $81M Midtown Office Renovation

The best Landlord/Tenant lawsuits are the ones with the wildest issues- this one seems pretty clear cut...although everyone involved has enough real estate experience to know this so I'd bet there's a lot more to this story than we're being told...no one spends $81 Million without checking if they have the rights to do so!
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Developer Peter and Anthony Malkin, who control the Empire State Building, might be up for a Pinnacle Award next month for their renovation of 112 East 34th Street. We'd send our congratulations—the Pinnacle is "the real estate equivalent of a Golden Globe," according to the Times' Charles Bagli—if it weren't for one thing: The Malkins don't actually own 112 West 34th Street, and the office building's owner, Charles Cohen, is suing over the $81 million renovation they completed. Cohen claims the Malkins didn't have permission, required by their 1963 lease, to fancy up the building with its new glass facade or marble entrance. The Malkins, meanwhile, argue that Cohen just wants to break their lease, which lasts until 2077 at a rent rate 10x below what Cohen could get now. So we guess it's too soon to talk about what the Malkins might wear to the real estate Golden Globes? 
· Official website: 112 West 34th Street [112west34thstreet.com]
· Malkins Sued by Landlord Over $81 Million Renovation [NYT]
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