Arch Companies sues joint venture partners in SoHo apartment building dispute – Trade Observer

It took over two decades to secure the luxurious SoHo apartment building in 11 Greene Street off the ground, but the six-story property isn’t out of the woods yet.

Arch Enterprises sued its joint venture partners Perot 11 Greene Investor LLC (an entity that shares an address with ABS Partners) and TDRT 11 Greene Street LLC for allegedly failing to repay Arch for the $1.14 million it invested in the 31-unit luxury rental asset, according to a lawsuit filed Tuesday in New York County Supreme Court.

The developer also wants the court to keep the remaining $1.3 million in construction funds and security deposit income from the joint venture, as it fears Perot and TDRT will seize the money before paying its debts to Arch. , according to the file.

Arch, his attorneys and ABS did not immediately respond to requests for comment.

The development of Greene Street was originally planned by Thor Stocks but languished for almost two decades thanks to the downturn in the real estate market after 2001 and the Monuments Preservation Commissionslow process to approve the Kaufman Gene design of the landmark building, City Realty reported.

Arch took over the Thor project in 2018 and, armed with $45 million in financing for the construction of Maxime Capital Groupbegan renting the property in 2021. The building opened in July after obtaining a certificate of occupancy, according to a spokesperson for the New York City Department of Buildings.

Arch says it spent around $486,635 to complete the ownership and hired third-party vendors itself to do the work, but in September it was removed as JV director by its partners and asked to hand over the funds. of construction remaining without reimbursement.

“After reaping the benefits of Arch’s labor and expertise, Perot devised to deprive Arch and its affiliates of amounts owed to them,” Arch said in the lawsuit.

Arch also alleged that Perot failed to distribute proceeds from the $45 million refinance. National Bank of the Valley provided in September, and said it would not be able to pay the contractors without those funds, according to the lawsuit and property records.

But the joint venture should apparently be loaded with cash since the building is fully leased with two- and three-bedroom units bringing in $10,000 and $14,500 a month, respectively, according to City Realty and 11 Greene’s website.

Celia Young can be contacted at [email protected].

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