McDonald’s Sues to Demolish StreetEasy Founder’s Penthouse

StreetEasy co-founder Michael Smith has a global fast-food chain as an enemy in the expansion of his penthouse in Tribeca

McDonald’s filed a lawsuit last month, seeking upwards of $10 million in damages and a restoration of the roof at 147 Reade Street, Bloomberg reported. The roof was reserved for HVAC equipment for the restaurant around the corner, according to the lawsuit, but has since been replaced by Smith’s penthouse.

Smith proposed expanding his condominium in 2007, according to a court filing. Today, the penthouse spans 3,700 square feet, not including four outdoor decks and a swimming pool.

Decades earlier, however, McDonald’s acquired a handful of commercial units originally included in a proposed condo project known as the Tribeca, according to the suit. The chain also claims to have negotiated several easements, one of which allowed for a cooling tower to be installed on the roofs of 147 and 149 Reade.

In 2006, McDonald’s installed a system that no longer required the cooling tower, the Golden Arches alleges. But by 2012, the company recognized significant HVAC issues for its Greenwich Street location. Critically, the company claims it never relinquished its rights to the roofs.

McDonald’s negotiated with the condo board — once led by Smith — and tried to have HVAC equipment installed in the courtyard, which was rejected, according to the suit. When McDonald’s exercised its original easement in 2021, it was informed the rooftop space was no longer available due to the expanded penthouse.

A lawyer for Smith declined to comment on the suit.

This is the second time Smith is facing action over his penthouse. In 2021, the condo board alleged Smith abused his role as condo president to push the penthouse expansion through. The condo board is seeking $5 million in damages; the case is ongoing.

Smith filed to have the case dismissed several years ago, claiming the statute of limitations has expired.

Zillow acquired StreetEasy in 2013 for $50 million. Smith is a managing partner of Tribeca Heavy Industries, according to his LinkedIn.

— Holden Walter-Warner