Madison Equities Owes $700K in Back Rent at Madison Avenue Offices: Suit
By Anna Staropoli September 23, 2021 12:28 pm
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New York City tenants have used the pandemic to postpone rent payments, resulting in a pattern of lawsuits, but now luxury property developer Madison Equities is in the hot seat, Crains New York Business first reported.
Although a landlord of Manhattan offices, Robert Gladstone’s Madison Equities has allegedly failed to pay rent on its own 105 Madison Avenue office, according to a lawsuit filed by A&R Real Estate in Manhattan State Supreme Court on Tuesday. A&R asserted that the developer owes nine months’ worth of payments, totaling $701,686.21.
This is not the first time A&R has held Madison Equities accountable for missing rent. In a court case filed on July 26, A&R won a back rent payment of nearly $400,000, which has yet to be paid. Tuesday’s filing includes that sum, as well as an additional $10,000 owed in attorney fees.
Since 2012, Madison Equities has had an office on the ninth floor of 105 Madison, with the lease set to expire in April 2023, court records show. Until then, A&R expects Madison Equities to continue to put forward rent payments — of which Madison Equities collects throughout its own properties.
Madison Equities owns properties spanning the city, including 212 Fifth Avenue and 45 Broad Street. Jeff Bezos is among 212 Fifth Avenue’s tenants and pays rent for five apartment buildings to the tune of $119 million. That property has been in high demand since 2019; tenants occupy all 48 units.
Spokespeople for Madison Equities and A&R did not immediately respond to requests for comments. Smith & Krantz filed the case on behalf of the landlord.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
