Michael A. Smith, co-founder and former CEO of StreetEasy, is embroiled in a legal dispute with McDonald’s over his Tribeca penthouse at 147 Reade Street in Manhattan. The fast-food corporation alleges that Smith’s residence unlawfully occupies rooftop space designated for their HVAC equipment and is seeking its demolition along with $10 million in damages, as New York Post reported.
The Back Story
In 1990, McDonald’s acquired four commercial units within the condominium complex, securing easements that included rights to install a cooling tower on the roofs of 147 and 149 Reade Street. Although the company removed the cooling tower in 2006, it retained its easement rights to the rooftop space, according to documents, as Bloomberg News reported.
Smith expanded his penthouse in 2007, obtaining approval from the condominium board, which he chaired as president. The renovation resulted in a five-story residence featuring approximately 3,700 square feet of interior space, four outdoor decks, and a swimming pool. McDonald’s contends that this expansion encroached upon the area reserved for their HVAC equipment.
Heated Conflict
The conflict intensified in 2021 when McDonald’s sought to exercise its easement rights to reinstall HVAC equipment on the roof, only to discover that the space was occupied by Smith’s penthouse. The company asserts that the construction was unauthorized and is demanding the restoration of the roof to its original state, in addition to financial compensation.
Smith maintains that his renovation was properly approved by the condominium board and that the statute of limitations for any objections has expired. His attorney, Emily Reisbaum, has referred to a 2021 motion to dismiss, emphasizing these points.
This is not the first controversy surrounding Smith’s penthouse. In 2021, the condominium board accused him of abusing his position to mislead fellow owners about the extent of the expansion, seeking $5 million in damages, according to Bloomberg News.
Smith co-founded StreetEasy and sold the platform to Zillow for $50 million in 2013. He now serves as a Managing Director at Tribeca Heavy Industries, according to Daily Mail.
