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212 Fifth developers settle lawsuit with Town over termination

Parties locked horns over sales benchmarks

Andrew Heiberger, Robert Gladstone and 212 Fifth Avenue
Andrew Heiberger, Robert Gladstone and 212 Fifth Avenue

The developers of 212 Fifth Avenue, a 48-unit luxury condominium conversion project near Madison Square Park, have settled a legal battle with the project’s former marketing firm, Town Residential.

In the suit, filed in January, the development team, a partnership between Madison Equities, Building and Land Technology and Thor Equities, alleged that the brokerage resisted being replaced by Sotheby’s International Realty despite having failed to meet sales targets.

Town countered that the developers had been improperly withholding more than $2.5 million in commissions its new development team had already earned from closings and contracts. The firm also accused the developers of failing to provide a finished sales office or adequate marketing materials, thereby delaying marketing of the units.

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Spokesperson for Town and the developers declined to provide any details on the terms of the settlement.

Town had sold 23 units, or about 50 percent of the project, at the time of its dismissal in December, the firm previously said. A spokesperson for the project said it’s now about 70 percent sold.

Buyers at the NoMad building include real estate developer Charles Kushner and Ed Bass, the Fort Worth billionaire famous for funding a “Biosphere” experiment, The Real Deal previously reported.

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