A legal dispute has arisen between McDonald’s and the co-founder and former CEO of StreetEasy over the construction of a luxury penthouse atop a Manhattan condominium. According to a report in the New York Post, McDonald’s is claiming ownership of the rooftop space, which is being used as a penthouse.
Former StreetEasy CEO Michael A. Smith, who sold his company to Zillow in 2013 for $50 million, is the owner of the luxury penthouse at 147 Reed Street. McDonald’s recently filed lawsuit states that the penthouse has four outdoor decks and a private pool.
The rooftop area was expanded in 2007, bringing the total area to approximately 3,700 square feet. Located atop Tribeca, a five-story apartment complex built in 1987. The complex includes properties at 149 Reid Street, 165 Chambers Street and 303-307 Greenwich Street.
As detailed in court documents first reported by Bloomberg News, McDonald’s purchased four commercial units in 1990, negotiated several easements, and created a lead 147 in one of them. It is claimed that cooling towers were allowed to be installed on the rooftops of No. 1 and No. 149.
The company said it used this space until 2006, when it replaced the cooling tower with a new system that didn’t require rooftop space.
The following year, Smith received approval from the board to expand the penthouse unit, which included demolishing part of the easement that McDonald had claimed.
Smith’s attorney, Emily Reisbaum, instructed Bloomberg to file a motion to dismiss in 2021, but Smith argued that the statute of limitations had passed.
Smith co-founded StreetEasy in 2006 with Sebastian Delmont, Doug Chertok, and Nataly Kogan.
After selling his stock in 2013, he held various executive roles at several technology companies.
According to Bloomberg News, Smith’s penthouse has been involved in disputes in the past.
In 2021, the condominium board accused Smith of abusing his position as president and misleading other owners about penthouse expansions. The commission claims Smith concealed the full scope of the expansion and is seeking at least $5 million in damages.
