StreetEasy's co-founder and former CEO is embroiled in a bitter legal battle with McDonald's for building an illegally luxurious penthouse on top of a Manhattan apartment complex – Fast It's a rooftop space that a major food company claims ownership of.
Michael A. Smith, who sold the popular real estate website to Zillow for $50 million in 2013, owns a penthouse apartment at 147 Reed Street in Tribeca. mcdonalds
Expanded in 2007 and totaling approximately 3,700 square feet atop a five-story condominium project called Tribeca, it was built in 1987 and is located at 149 Reed Street, 165 Chambers Street, and 303-307 Greenwich Street. Contains.
McDonald claims he purchased four commercial units in 1990 and negotiated several easements. One of them allowed cooling towers to be installed on the roofs of 147 and 149 Reed, according to court documents. Bloomberg News first reported.
The company said it used the space until 2006, when it replaced the cooling tower with a new system that took up less space on the roof.
The following year, Smith received approval from the board to expand the penthouse unit, which required demolishing the portion of the easement that McDonald had claimed.
McDonald's is seeking to have the roof restored to its original condition and at least $10 million in damages, according to court records.
McDonald's said in 2012 that it was facing “serious air conditioning issues” and needed to install a water tower and condenser. The company said it never gave up its rights to the rooftop space.
Years of back and forth continued between McDonald's and the condominium board. The board, chaired by Mr. Smith at the time, rejected McDonald's request to install the HVAC unit in the condominium's courtyard.
McDonald's notified the board that it would exercise the original easement in 2021, according to the complaint.
However, a consulting engineer told the company that the rooftop space “no longer exists” because a penthouse was built on top of it.
Mr. Smith argued that the board properly approved the renovation plans in 2007, and that the work was fully completed and visible by 2010.
Emily Riesbaum, Smith's attorney, referred Bloomberg to a 2021 motion to dismiss that Smith argues is past the statute of limitations.
The newspaper has contacted Reisbaum and McDonald's for comment.
Mr. Smith co-founded StreetEasy in 2006 with Sebastian Delmont, Doug Chartock and Natalie Kogan.
Since raising capital in 2013, he has held executive positions at a number of technology companies.
According to Bloomberg News, Smith's penthouse has been the subject of previous disputes.
In 2021, the condominium board alleged that Smith abused his position as president to mislead other owners about the expansion. The commission claims Mr. Smith concealed the true extent of the penthouse expansion and is seeking at least $5 million in damages.
