Manhattan, NY – Citibank has filed for an injunction against the former Toy Building to block the landlord, Yitzchak Tessler, from evicting a branch location from the building’s commercial space.
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Citibank says it stopped paying the monthly rent in March and has since placed more than $296,300 in escrow amid claims that the landlord failed to pay for utilities and keep the building, at 1107 Broadway between 24th and 25th streets, in safe condition. The building, a stalled condominium conversion, is currently being foreclosed on by Lehman Brothers.
“In violation of the lease, 1107 Broadway has failed to make all necessary repairs (including structural repairs) to keep the premises in good working order and condition,” attorney Cari Lewis, representing the plaintiff, alleged in the injunction request filed July 20.
The lawyers for Tessler counter that Citibank withheld rent in violation of its lease, which it signed in 2004. They also claim that Citbank continues to operate a branch at the location despite filing complaints with city officials about alleged safety issues.
“There were some violations that were issued as a result of Citibank calling various agencies to complain,” Mitchell Kosoff, attorney for Tessler, told The Real Deal. “The owner of the building is making arrangements with the Department of Buildings to ensure that the building continues to be in compliance with all applicable rules and regulation. None of these violations, however, is a basis for Citibank to withhold its rent pursuant to its lease.”
The dispute comes at a time when bankrupt Lehman is trying to foreclose on the 16-story building, which Tessler wanted to convert into a 165-unit condo. The investment firm filed suit in May seeking $136.8 million from Tessler, after he allegedly defaulted by not making payments when the loan came due in 2008. Tessler, president and chief executive of Tessler Development, is being held personally accountable for the default, as he signed guarantees linked to the mechanic’s liens and other default items, according to Lehman’s suit.
Citibank initially filed suit in June, seeking to block the eviction, alleging not only was the building unsafe, but that the building failed to maintain working sprinkler systems and then that the bank was forced to pay all of the building’s Consolidated Edison payments since March, totaling tens of thousands of dollars.
According to the DOB website, there are 49 open violations at 1107 Broadway. A stop-work order was issued against the building in October 2008 for failure to maintain a site safety officer at the site. A second stop-work order was issued in May 2010 after the construction permits were revoked.
In addition to the restraining order, the Citibank suit demands that DOB issue an immediate vacate order and that the landlord pay damages of more than $1 million.
Tessler was not immediately available for comment. Beth Huffman, a spokesperson for Dechert, which represents Lehman, declined to comment, and DOB officials were not immediately available for comment.
Those banks are ruthless, always, I love it when people settle their credit cards for pennies on the dollar
, I love it when people settle their credit cards for pennies on the dollar?
So you are for genave,dishonesty and cheating?In a malchus shel chesed where is the justification for that?Lets make a new daily chumrah! NO cheating the banks?think we can get 30 rabbonim to sign it?
Sure as soon as the banks stop charging 30% interest.
Why are you all ganging up against the bank? It is quite evident that they are in the right in this case. And #2 , you know that no one will sign unless they get at least a 15% cut.