The co-founder and former CEO of StreetEasy is embroiled in a bitter authorized feud with McDonald’s for constructing an allegedly unlawful posh penthouse atop a Manhattan condominium constructing — roof area the fast-food big claims it owns.
Michael A. Smith, who offered the favored realtor website to Zillow for $50 million in 2013, owns the penthouse condominium at 147 Reade Road within the Tribeca — which incorporates 4 outside decks and a swimming pool, in line with the lawsuit filed simply earlier than Thanksgiving by McDonald’s
It was expanded in 2007 and totals round 3,700 sq. ft atop a five-story condominium venture known as the Tribeca, which was inbuilt 1987 and encompasses 149 Reade Road, 165 Chambers Road and 303-307 Greenwich Road.
McDonald’s claims that it purchased 4 business items in 1990 and negotiated a number of easements — one in every of which allowed the corporate to put in a cooling tower on the roofs of 147 and 149 Reade, in line with courtroom paperwork, which was first reported by Bloomberg Information.
In accordance with the corporate, it used the area till 2006, when it changed the cooling tower with a brand new system that didn’t require it take up area on the roofs.
The following yr, Smith obtained approval from the board to increase the penthouse unit, which entailed demolition of the portion of the easement that McDonald’s claimed rights to.
McDonald’s desires the roof restored to its unique state and is looking for at the very least $10 million in damages, in line with courtroom data.
In 2012, McDonald’s mentioned it encountered “serious HVAC problems” and that it wanted to put in a water tower and condensers. The corporate mentioned that it by no means relinquished its rights to the area on the roofs.
Years of back-and-forth between McDonald’s and the condominium board ensued. The board, whose president on the time was Smith, rejected McDonald’s request to have its HVAC unit put in within the condominium courtyard.
In 2021, McDonald’s knowledgeable the board that it was exercising its unique easement, in line with the lawsuit.
However a consulting engineer advised the corporate that the roof area was “no longer there” as a result of a penthouse was constructed atop of it.
Smith has claimed that the board correctly authorised the renovation plan in 2007 and that the work was absolutely accomplished and visual by 2010.
His lawyer, Emily Reisbaum, referred Bloomberg to a 2021 movement to dismiss wherein Smith says that the statute of limitations had expired.
The Put up has sought remark from Reisbaum and McDonald’s.
Smith co-founded StreetEasy in 2006 alongside Sebastian Delmont, Doug Chertok and Nataly Kogan.
After cashing out in 2013, he has held a number of govt positions at quite a lot of tech companies.
Smith’s penthouse has been the topic of prior disputes, in line with Bloomberg Information.
In 2021, the condominium board alleged that Smith abused his place as president to mislead fellow homeowners in regards to the enlargement. The board, which alleged that Smith hid the true extent of the penthouse enlargement, is looking for at the very least $5 million in damages.
