A legal dispute has arisen between McDonald’s and the co-founder and former CEO of StreetEasy regarding the construction of a high-end penthouse atop a Manhattan condominium. McDonald’s asserts ownership of the rooftop space utilized for the penthouse, the New York Post reported.
The former StreetEasy CEO, Michael A. Smith, who garnered $50 million from the sale of the company to Zillow in 2013, is the owner of the lavish penthouse at 147 Reade Street. McDonald’s lawsuit, filed recently, describes the penthouse as possessing four outdoor decks and a private swimming pool.
The rooftop area underwent an expansion in 2007, resulting in a total area of approximately 3,700 square feet. It is situated atop the Tribeca, a five-story condominium complex constructed in 1987. This complex encompasses the properties located at 149 Reade Street, 165 Chambers Street, and 303-307 Greenwich Street.
McDonald’s claims that it purchased four commercial units in 1990 and negotiated several easements, one of which permitted the company to install a cooling tower on the roofs of 147 and 149 Reade, as detailed in court documents first reported by Bloomberg News.
The company says it used the space until 2006 when it replaced the cooling tower with a new system that no longer required rooftop space.
In the following year, Smith received approval from the board to expand the penthouse unit, which involved demolishing the part of the easement that McDonald’s claimed ownership of.
His attorney, Emily Reisbaum, directed Bloomberg to a 2021 motion to dismiss, where Smith argued that the statute of limitations had expired.
Smith co-founded StreetEasy in 2006 with Sebastian Delmont, Doug Chertok, and Nataly Kogan.
After selling his stake in 2013, he held various executive roles at several tech companies.
Smith’s penthouse has been involved in previous disputes, according to Bloomberg News.
In 2021, the condo board accused Smith of abusing his position as president to deceive other owners about the penthouse expansion. The board, which claims Smith hid the full scope of the expansion, is seeking at least $5 million in damages.