The former CEO of StreetEasy is locked 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 over the construction of the luxury apartment atop a Manhattan building.
Smith built the penthouse by expanding his existing condo upwards, however McDonald’s claims it owns the roof space which house the expansion.
The corporation says the space was reserved for heating, ventilating 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, as well as demolition of the penthouse.
The conglomerate bought four commercial units in the original five-story building back in 1990 as part of the initial development.
It said that it negotiated a number of terms, including installation of cooling equipment on the roof where Smith’s penthouse sits.
However, in 2006 a new cooling system was installed and a cooling tower was no longer required.
The former CEO of StreetEasy is locked 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 the luxury apartment atop a Manhattan building
McDonald’s claims it never gave up the rights and now wants to reinstall HVAC equipment because its nearby restaurant has been having problems.
The filing adds that McDonald’s pitched installing the equipment in the development’s courtyard but that this was ‘soundly rejected’ by the condo’s board.
In 2021 McDonald’s informed the board that it wished to exercise its rights but was apparently told the space no longer exists as it has been converted into the penthouse.
But Smith claims that his plans to expand to property were fully approved by the board in 2007, with construction completed in 2010.
His lawyer Emily Reisbaum said that the statute of limitations bars any legal challenges.
The renovation more than doubled the condo from 1,253 square feet to 3,7000.
Smith co-founded StreetEasy in and sold the website to Zillow for $50 million in 2013. He currently works as a 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 needs to use it to store HVAC equipment
In 2021, the condo board accused Smith of abusing his position to mislead other home owners about the expansion. The accusations appeared in a lawsuit seeking $5 million in damages.
The property forms part of the exclusive set of condos which make up 147 Reade Street, a 22-unit building.
DailyMail.com has contacted Smith and McDonald’s representatives for comment.
