Major battles Maclowe, Churchill after exclusion from projects



Dropped by Maclow and Churchill, Core Real Estate Demands Payment

Harry Maclow and 1 Wall Street, Sean Osher of Core Real Estate and Churchill Real Estate founders Justin Ehrlich and Sorab Maheshwari of 517 West 29th Street (Getty, LinkedIn and Churchill Real Estates)

Sean Osher unleashed a war on two fronts against developer Harry McLough and investment company Churchill Real Estate.

Osher, founder and CEO of Core Real Estate, is demanding $ 950,000 in completion fees, which he says they all owe him together following Core’s removal from his position as the exclusive sales firm for the three projects.

Osher filed a lawsuit against Maclow on July 16, claiming that Core owed $ 750,000 for its agreement to conduct sales of condominiums on One Wall Street was terminated for no reason. On the same day, Osher wrote to Churchill’s management demanding a meeting to discuss the Chelsea condominium they had kicked out of him over a year ago.

Both projects were in the midst of launching sales with other brokerage firms, according to Churchill’s Supreme Court complaint. (In the case of One Wall Street, Compass took over the project, while Eklund Gomez Douglas Elliman’s team now leads sales at the Chelsea condo.)

Core did not respond to requests for comment.

Core’s lawsuit against Macklowe stems from the fact that the developer abandonment of the firm in December in favor of Compass to manage sales of its 566-unit condominium in the Financial District. Osher’s firm worked on the project, which is expected to sell $ 1.7 billion, over five years and requires payment of $ 750,000 to exit.

If he is denied this commission, the broker has another argument. Core said in its complaint that it had been denied the ability to sell One Wall Street units since Maclowe ordered it to stop selling in April 2020. The firm “as an alternative” is seeking damages for lost commissions since the start of the pandemic, as well as attorney fees.

In a dispute with Churchill, a lawsuit was filed against Core: the investment company sued the brokerage firm after it abandoned it on two projects.

After meeting with Churchill executives last week, Osher emailed them demanding a $ 200,000 shutdown fee for Core at the Chelsea project, 517 West 29th Street, and the Soho condominium at 74 Grand Street. In both cases, Churchill cut ties with Core over a year ago. IN Eklund Gomez team is currently engaged in both projects.

Churchill responded to Osher’s demand, which he called “an ex post facto, unfair refusal to accept” his dismissal, by asking the court to confirm that Churchill was right. According to the lawsuit, its agreements with Core say no termination fee is required if Core is discontinued before the condominium offer plan is filed.

Moreover, Churchill argued in his complaint that “the time [Core]User actions were aimed at offending [Churchill] at a crucial moment in their sales process. “

Despite the tension, Churchill and Core are still working together on the same project: pool house at 435 West 19th Street, where each apartment should have a private pool. But here, too, there was some drama.

Churchill fired Core from the project last summer because, according to the lawsuit, Churchill’s executives and investors objected to working with the brokerage company after Black’s former employee and agent spoke out about the feeling of discomfort in Core. However, after a few months, the investment company canceled the termination of the contract.

Churchill has yet to submit a layout for West 19th Street and the source said the apartments are not currently up for sale.

This isn’t the first time Core has gone to court to collect termination fees from former customers.

Core sued developer Carey Tamarkin and architect Carey Pike last year for halting construction of their respective Chelsea condominium projects. The case against Tamarkin, who swapped The core for star broker Ryan Serhant continues in 2019, but Pike paid Core over $ 260,000 last year.

Sales for the Tamarkin project at 550 West 29th Street are currently being handled by Steve Gold at the Corcoran Group, while Pike’s project at 455 West 19 Street is being implemented by Lisa Simonsen’s team at Elliman.

Basic, which is owned by Osher, related companies and Midtown Equities, is in the business of selling at least 12 new buildings, according to its website and public records.

Churchill’s lawyer and Maclowe’s spokesman did not respond to requests for comment.


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