The ongoing issue between urban development and property rights in New York has taken a new turn, involving a former tech CEO and a global fast-food chain. Michael A. Smith, co-founder and former CEO of real estate website StreetEasy, is engaged in a $10 million legal dispute with McDonald's over an alleged unauthorized penthouse atop a Tribeca building. According to a lawsuit filed by McDonald's, the penthouse encroaches on an area the company had reserved for HVAC equipment.
With four outdoor decks and a swimming pool, Smith's penthouse expansion at 147 Reade Street has not gone unnoticed. According to Crain's New York, the renovation initiated in 2007 lead to the apartment boasting nearly 3,700 square feet of interior space. Meanwhile, McDonald's contends that it purchased rights to the roof space atop 147 and 149 Reade Street for HVAC purposes back in 1990, seeking now restoration of the roof to its original condition in addition to monetary damages.
The chronology of the dispute reveals a complex history reported by Crain's New York. McDonald's allegedly utilized the space until 2006 and discovered in 2012 that its Greenwich Street restaurant was experiencing serious HVAC problems. The fast-food conglomerate asserts that proposals to rectify the situation, including using the project's courtyard, were rejected by the condo board—of which Smith was president at the time.
In a more recent development, McDonald's learned in 2021, through a consulting engineer, that the roof space they intended to reclaim for their equipment had vanished beneath the foundations of Smith's luxury penthouse. Documentation from the legal actions indicates Smith claims the board approved the penthouse renovation plan in 2007, with work completed by 2010, as reported by The Post. Smith's lawyer, Emily Reisbaum, referenced a 2021 motion to dismiss the case, arguing it was barred by the statute of limitations.
Separate from the legal battle with McDonald's, the condo board has accused Smith of using his former position to mislead them about the scope of the penthouse project, concealing such features as a rooftop pool—which Smith denies, according to a Crain's New York report. The condo board demands at least $5 million in damages in this ongoing case.
Representatives for Smith and McDonald's have been approached for comment on these allegations and the impending litigation, but as of now, both parties have chosen to withhold statements from the press.
