Aby Rosen, the owner of RFT Realty and one of New York’s top real estate moguls’ has one a big court victory in dispute regarding RFT’s Gramercy Park Hotel.
A judge in a Manhattan Supreme Court has ruled that Abby Rosen cannot be held personally accountable for a lease at the Gramercy that was left unpaid.
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The Gramercy is a landmark New York Hotel, located in the heart of the City. It has been home to creative minds and distinguished guests for nearly a century. The Hotel is a modern take on a traditional grand New York Hotel, with its custom-designed, handcrafted furnishings and rotating collection of 20th century Artwork, including masterpieces from Andy Warhol and Jean-Michel Basquiat. Every room in this New York Hotel features unique Luxury Amenities — imported Italian linens, exquisite Artwork and luxurious beauty products.
The Hotel’s 21st century facelift from Oscar-nominated director and artist Julian Schnabel focused on a distinct Renaissance-revival concept incorporating the vivid colors of the era with bold hues on the walls, upholstery and carpets. The furniture was specially imported from markets around the world. The result is an ambiance that is regal, relaxed and ultimately, transporting.
So, what was the law suit all about?
Well, back in April, Solil Management which handles the ground lease management at the hotel filed a lawsuit against RFR Realty. Solil wanted to end RFR’s 72-year ground lease for the lot and collect $79.5 million Solil said that it was owed from their contract deal.
The problem here for RFT is that while the company owns the Gramercy Park Hotel, it does not own the ground upon which the hotel sits. It pays Solil Management about $5 million a year to rent the space. And RFT could not make its payments to Solil in recent times because the Gramercy was closed indefinitely due to the worldwide Covid crisis.
RFT, as a company, may still be on the hook for the money owed. But the judge ruled that Abby Rosen, the person, cannot be held liable for any of the debt.
