The co-founder and former CEO of StreetEasy is embroiled in a bitter legal feud with McDonald’s for building an allegedly illegal posh penthouse atop a Manhattan condo building — roof space the fast-food giant claims it owns.
Michael A. Smith, who sold the popular realtor site to Zillow for $50 million in 2013, owns the penthouse apartment at 147 Reade Street in the Tribeca — which includes four outdoor decks and a swimming pool, according to the lawsuit filed just before Thanksgiving by McDonald’s
It was expanded in 2007 and totals around 3,700 square feet atop a five-story condo project called the Tribeca, which was built in 1987 and encompasses 149 Reade Street, 165 Chambers Street and 303-307 Greenwich Street.
McDonald’s claims that it bought four commercial units in 1990 and negotiated several easements — one of which allowed the company to install a cooling tower on the roofs of 147 and 149 Reade, according to court documents, which was first reported by Bloomberg News.
According to the company, it used the space until 2006, when it replaced the cooling tower with a new system that didn’t require it take up space on the roofs.
The next year, Smith obtained approval from the board to expand the penthouse unit, which entailed demolition of the portion of the easement that McDonald’s claimed rights to.
McDonald’s wants the roof restored to its original state and is seeking at least $10 million in damages, according to court records.
In 2012, McDonald’s said it encountered “serious HVAC problems” and that it needed to install a water tower and condensers. The company said that it never relinquished its rights to the space on the roofs.
Years of back-and-forth between McDonald’s and the condo board ensued. The board, whose president at the time was Smith, rejected McDonald’s request to have its HVAC unit installed in the condo courtyard.
In 2021, McDonald’s informed the board that it was exercising its original easement, according to the lawsuit.
But a consulting engineer told the company that the roof space was “no longer there” because a penthouse was built atop of it.
Smith has claimed that the board properly approved the renovation plan in 2007 and that the work was fully completed and visible by 2010.
His attorney, Emily Reisbaum, referred Bloomberg to a 2021 motion to dismiss in which Smith says that the statute of limitations had expired.
The Post has sought comment from Reisbaum and McDonald’s.
Smith co-founded StreetEasy in 2006 alongside Sebastian Delmont, Doug Chertok and Nataly Kogan.
After cashing out in 2013, he has held several executive positions at a number of tech firms.
Smith’s penthouse has been the subject of prior disputes, according to Bloomberg News.
In 2021, the condo board alleged that Smith abused his position as president to mislead fellow owners about the expansion. The board, which alleged that Smith concealed the true extent of the penthouse expansion, is seeking at least $5 million in damages.
