The co-founder and former CEO of StreetEasy is embroiled in a bitter legal battle with McDonald’s over the construction of an allegedly illegal luxury condo atop a Manhattan apartment building — rooftop space the fast-food giant claims it owns .
Michael A. Smith, who sold popular real estate site Zillow for $50 million in 2013, owns the penthouse at 147 Reade Street in Tribeca — which includes four outdoor decks and a pool, according to the lawsuit filed recently Thanksgiving from McDonald’s
It was expanded in 2007 and reaches an area of about 3,700 square meters on top of a five-story residential project called Tribeca, which was built in 1987 and includes 149 Reade Street, 165 Chambers Street and 303-307 Greenwich Street.
McDonald’s claims 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 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 did not require it to take up space on the roof.
The next year, Smith received approval from the board to expand the penthouse unit, which caused the demolition of the portion of the easement that McDonald’s claimed rights to.
McDonald’s wants the roof returned to its original condition and is seeking at least $10 million in damages, according to court records.
In 2012, McDonald’s said it had encountered “serious HVAC problems” and needed to install a water tower and condensers. The company said it never gave up its rights to the rooftop space.
Years of back-and-forth ensued between McDonald’s and the condo board. The board, whose president at the time was Smith, denied McDonald’s request to install its HVAC unit in the apartment’s courtyard.
In 2021, McDonald’s informed the board that it was exercising its original easement, according to the suit.
But a consulting engineer told the company that the roof space was “no longer there” because a penthouse had been built over it.
Smith has maintained that the board duly 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 the statute of limitations had expired.
The Post has sought comment from Reisbaum and McDonald’s.
Smith co-founded StreetEasy in 2006 along with Sebastian Delmont, Doug Chertok and Nataly Kogan.
After cashing in in 2013, he has held several executive positions at a number of technology firms.
Smith’s penthouse has been the subject of previous disputes, according to Bloomberg News.
In 2021, the condo board alleged that Smith abused his position as president to mislead other owners about the expansion. The board, which claimed Smith hid the true extent of the apartment expansion, is seeking at least $5 million in damages.
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