Brokerage Open Impact Sues Joyland Over Unpaid Commission on School Sale

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Open Impact Real Estate might be just over a year old, but when it comes to its commission, it’s not getting pushed around.

The brokerage sued landlord Arthur Joyjack Holdings LH LLC for failing to pay at least $684,000 in brokerage fees related to Zeta Charter Schools’ deal to open its third location in Arthur Joyjack’s 1910 Arthur Avenue in the Bronx, according to a lawsuit filed Friday in New York County Supreme Court.

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Open Impact co-founder Lindsay Ornstein spent a year looking for a new location for Zeta, while working for Transwestern, until landing on the 65,000-square-foot Arthur Avenue site. In 2020, Ornstein arranged a $4.8 million, 49-year leasehold agreement for Zeta to take over the entire building with Arthur Joyjack, controlled by Joyland Management LLCJoyland Group and Joel Wertzberger of Hamilton Eastman, initially agreeing to pay $1.2 million in brokerage fees, according to the suit.

Arthur Joyjack later negotiated the fee down to $1 million but paid out only $304,789 to Transwestern and nothing to Open Impact, which Ornstein founded in 2021, the suit claimed.

Joyland did not immediately respond to a request for comment. Ornstein and Open Impact’s lawyers declined to comment.

Celia Young can be reached at cyoung@commercialobserver.com.