McDonalds demands ex-StreetEasy CEO demolish his NYC penthouse in $10M legal feud
The co-founder and former CEO of StreetEasy is embroiled in a bitter legal feud with McDonald’s for building an allegedly illegal posh penthouse atop a Manhattan condo building — roof space the fast-food giant claims it owns.Michael A.Smith, who sold the popular realtor site to Zillow for $50 million in 2013, owns the penthouse apartment at 147 Reade Street in the Tribeca — which includes four outdoor decks and a swimming pool, according to the lawsuit filed just before Thanksgiving by McDonald’sIt was expanded in 2007 and totals around 3,700 square feet atop a five-story condo project called the Tribeca, which was built in 1987 and encompasses 149 Reade Street, 165 Chambers Street and 303-307 Greenwich Street.McDonald’s claims that it bought four commercial units in 1990 and negotiated several easements — one of which allowed the company to install a cooling tower on the roofs of 147 and 149 Reade, according to court documents, which was first reported by Bloomberg News.According to the company, it used the space until 2006, when it replaced the cooling tower with a new system that didn’t require it take up space on the roofs.The next year, Smith obtained approval from the board to expand the penthouse unit, which entailed demolition of the portion of the easement that McDonald’s claimed rights to.McDonald’s wants the roof restored to its original state and is seeking at least $10 million in damages, according to court records. In 2012, McDonald’s said it encountered “serious HVAC problems” and that it needed to install a water tower and condensers.
The company said that it never relinquished its rights to the space on the roofs.Years of back-and-forth between McDonald’s and the condo board ensued.The board, whose president at the time was Smith, rejected McDonald’s request to have its HVAC unit installed in the condo courtyard.In 2021, McDonald’s informed the board that it was exercising its original easement, according to the laws...