A legal dispute has arisen between McDonald’s and Michael A. Smith, the co-founder and former CEO of StreetEasy, concerning the development of a luxury penthouse atop a Manhattan condominium. McDonald’s asserts ownership of the rooftop area utilized for the penthouse, according to the New York Post.
Smith, who made $50 million from the 2013 sale of StreetEasy to Zillow, possesses the high-end penthouse located at 147 Reade Street. McDonald’s has recently initiated a lawsuit detailing the penthouse, which features four outdoor decks and a private swimming pool. The rooftop space was expanded in 2007, leading to roughly 3,700 square feet of area above the Tribeca condominium, a five-story structure erected in 1987. The complex encompasses properties situated at 149 Reade Street, 165 Chambers Street, and 303-307 Greenwich Street.
McDonald‘s contends that it acquired four commercial units in 1990 and negotiated multiple easements, one of which permitted the company to install a cooling tower on the rooftops of 147 and 149 Reade. The company utilized the area until 2006 when it substituted the cooling tower with a new system that eliminated the need for rooftop space.
In 2007, Smith gained consent from the condo board to enlarge the penthouse, which involved demolishing a section of the easement McDonald’s claims to own. Smith’s attorney, Emily Reisbaum, cited a 2021 motion to dismiss in which Smith maintained that the statute of limitations had lapsed.
Smith co-founded StreetEasy in 2006 and assumed various executive positions at technology companies following the sale of his stake in 2013. His penthouse has been the focus of prior controversies. In 2021, the condo board accused Smith of exploiting his role as president to mislead other owners about the penthouse’s expansion. The board is pursuing at least $5 million in damages.
