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Extell Sues Landsea Homes Over 540 Sixth Avenue

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Left to right: Gary Barnett of Extell and John Ho of Landsea Homes with 540 Sixth Avenue (Linkedin, Getty)

Gary Burnett extel development The developer behind one of Manhattan’s most expensive condos has been accused of defrauding Extell from a $21 million lease and trying to steal its retail tenants.

Lawyer representing development company filed a lawsuit In Manhattan on Monday, Landsea Homes was accused of breaching a contract to sell its 11,200-square-foot retail store at 540 Sixth Avenue in Extell.

Extell also accused Landsea of ​​trying to force the closure of the unit while Extell was still challenging the terms of the deal. The complaint was first reported in commercial observer.

Developers are asking the New York Supreme Court to force Landsea to sell its retail condominium units. The company is also seeking at least $5.6 million, plus interest for damages it purports to have caused because Landsea terminated the contract and interfered with the tenancy agreement.

Extell accused Landsea of ​​failing to complete the retail condo before the transaction closed at the end of June and claimed the seller sought multiple amendments to the contract to delay the completion date. After failing to reach agreement on a sixth amendment to the sales contract, Landsea “decided to take matters into their own hands,” the company said.

Extell’s attorneys alleged that Landsea “fabricated a plan” to keep the retail division and Extell’s security deposit while attempting to run its own leases with tenants.

As part of the alleged scheme, Landsea gave Extell “Fake” notifications All closing conditions have been met and the transaction is expected to close in early July. Landsea also allegedly asked her Extell to provide contact information for tenants with whom an agreement was reached for space.

extel was denied Landsea’s “malicious” closure alleges that the seller failed to satisfy its concerns and made no effort to address legal or factual matters. Extell’s attorneys explained that Landsea’s “completely inappropriate” closure notice was invalid because the seller failed to meet its obligations.

Landsea withdrew the deal and kept the down payment after the buyer sued the seller for default, Extell said in the lawsuit. Extell’s attorneys argued that Landsea claimed it had the right to terminate the deposit after Extell refused to comply with the closing date.
The lawsuit’s award, which will be determined by the court, will include out-of-pocket costs, loss of lease income, and increased financing costs, according to the lawsuit.

Landsea has at least 20 days to respond to complaints. According to the complaint, if no response is received within the allotted period of time, the defendant will be sentenced for default.

Landsey declined a request for comment. She reached out to an Extell rep for comment, but she did not immediately respond.

More commonly known as Förena, the condominium was developed by Landsea and DNA Development after purchasing the site from Extell for $52.8 million in 2018. city ​​realty report. Landsea and DNA demolished two of his four-story properties to make way for that project.

Located at the intersection of Chelsea, Greenwich Village and Flatiron, the 12-story, 50-unit building Most Expensive Condo Application Last year in Manhattan for $127 million

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