Flank Closes On South Williamsburg Assemblage Despite Ongoing Litigation
Flank has closed on the $36M purchase of a South Williamsburg assembly adjacent to the Domino Sugar Factory, but the specter of an ongoing lawsuit hangs over the deal.
Investor Shulem Herman has filed two lawsuits since October alleging he was pushed out of a deal to buy the five contiguous lots that lie along South 2nd and South 3rd streets, and Wythe Avenue, The Real Deal reports.
He initially accused Long Island-based landlord Bruce Terzano of canceling his contract to buy the assemblage for $36M, but a judge threw out that suit in January.
The next day, Shulem came back with another suit alleging Bruce conspired to find a new buyer, in the form of Flank.
Despite the ongoing litigation, Flank now owns the site, and a broker involved in the sale tells TRD he expects the lawsuit to go away now that the deed has been transferred.
The site has roughly 80k BSF, and sources tell TRD Flank plans to convert the area to residential after the leases expire in the existing retail space. [TRD]