The former CEO of StreetEasy is embroiled in a tense $10 million legal battle with McDonald’s over claims he illegally built a penthouse on the roof they own.
Michael A. Smith is being sued by the fast food giant for building a luxury apartment on top of a building in Manhattan.
Smith built the penthouse by extending his existing apartment upstairs, but McDonald’s claims to own the roof space on which the extension is located.
The company says the space was reserved for heating, ventilation and air conditioning (HVAC) equipment used by a McDonald’s around the corner, according to the lawsuit obtained by Bloomberg.
McDonald’s is seeking $10 million in damages and the demolition of the penthouse.
The conglomerate purchased four commercial units in the original five-story building in 1990 as part of the initial development.
It is said that a number of terms have been negotiated, including the installation of refrigeration equipment on the roof where Smith’s penthouse is located.
However, in 2006 a new cooling system was installed and a cooling tower was no longer necessary.
The former CEO of StreetEasy is embroiled in a tense $10 million legal battle with McDonald’s amid claims he illegally built a penthouse on the roof they own
Michael A. Smith (right, pictured with Zillow CEO Spencer Rascoff) is being sued by the fast-food giant over the construction of a luxury apartment on top of a Manhattan building
McDonald’s claims it never gave up the rights and now wants to reinstall HVAC equipment because the nearby restaurant is experiencing problems.
The filing adds that McDonald’s proposed installing the equipment in the project’s courtyard, but this was “thoroughly rejected” by the apartment’s board.
In 2021, McDonald’s informed the board that it wanted to exercise its rights, but was apparently told that the space no longer exists because it has been converted into the penthouse.
But Smith claims his plans to expand into real estate were fully approved by the board in 2007 and construction was completed in 2010.
His attorney Emily Reisbaum said the statute of limitations precludes any legal challenge.
The renovation more than doubled the apartment size from 1,253 square feet to 3,7,000 square feet.
Smith co-founded StreetEasy and sold the website to Zillow for $50 million in 2013. He currently works as Managing Director for Tribeca Heavy Industries.
His penthouse has been the subject of previous disagreements, according to Bloomberg.
McDonald’s says it owns the roof space and must use it to store HVAC equipment
In 2021, the condo board accused Smith of abusing his position to mislead other homeowners about the expansion. The allegations emerged in a lawsuit seeking $5 million in damages.
The property is part of the exclusive range of apartments that make up 147 Reade Street, a 22-unit building.
DailyMail.com has contacted representatives for Smith and McDonald’s for comment.