Preview
FILED: NEW YORK COUNTY CLERK 02/22/2023 03:15 PM INDEX NO. 650950/2023
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/22/2023
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: COMMERCIAL DIVISION
BOARD OF MANAGERS OF 570 BROOME
CONDOMINIUM,
Index No. /2023
Plaintiff,
-against- SUMMONS
SOHO BROOME CONDOS LLC, YNC EQUITY Plaintiff designates New York County
PARTNERS LLC, MURAT AGIRNASLI, ERDEN as the place of trial.
M. ARKAN, SELIM AKYUZ, HILMI ULGUR
AYDIN, ERMAN AGIRNASLI, AGIME GROUP The basis for such venue is the
DOE"
LLC, "JOHN Nos. 1 through 10, and "JANE Plaintiff's residence in
DOE"
Nos. 1 through 10, said names being fictitious New York County. Plaintiff resides at:
and unknown to plaintiff but intending to be the
recipients of any voidable transactions made by 570 Broome Street
SOHO BROOME CONDOS LLC, New York, New York 10013
Defendants.
TO THE ABOVE-NAMED DEFENDANTS:
YOU ARE HEREBY SUMMONED to answer the complaint in this action and to
serve a copy of your answer, or, if the complaint is not served with this summons, to serve a notice
of appearance, on plaintiff's attorneys within twenty (20) days after the service of this summons,
exclusive of the day of service (or within thirty (30) days after the service is complete if the
summons is not personally delivered to you within the State of New York); and in case of your
failure to appear or answer, judgment will be taken against you by default for the relief demanded
in the complaint.
Dated: New York, New York
February 22, 2023
SCHWARTZ SLADKUS REICH
GREENBERG ATLAS LLP
AttorneysforPlaintiff
By:
Jared E. Paloff
Steven D. Sladkus
444 Madison Avenue, 6th Floor
New York, New York 10022
(212) 743-7000
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ADDRESSES OF DEFENDANTS
SOHO BROOME CONDOS LLC
36 North 10th Street, 2nd Floor
Brooklyn, New York 11249
YNC EQUITY PARTNERS LLC
149 West 36th Street, 6th Floor
New York, New York 10018
MURAT AGIRNASLI
149 West 36th Street, 6th Floor
New York, New York 10018
ERDEN M. ARKAN
136 North 10th Street, 2nd Floor
Brooklyn, New York 11249
SELIM AKYUZ
136 North 10th Street, 2nd Floor
Brooklyn, New York 11249
HILMI ULGUR AYDIN
136 North 10th Street, 2nd Floor
Brooklyn, New York 11249
ERMAN AGIRNASLI
136 North 10th Street, 2nd Floor
Brooklyn, New York 11249
AGIME GROUP LLC
1373 Broad Street, Suite 200B
Clifton, New Jersey 07013
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: COMMERCIAL DIVISION
BOARD OF MANAGERS OF 570 BROOME
CONDOMINIUM,
Plaintiff, Index No. /2023
-against-
COMPLAINT
SOHO BROOME CONDOS LLC, YNC EQUITY
PARTNERS LLC, MURAT AGIRNASLI, ERDEN
M. ARKAN, SELIM AKYUZ, HILMI ULGUR
AYDIN, ERMAN AGIRNASLI, AGIME GROUP
DOE"
LLC, "JOHN Nos. 1 through 10, and "JANE
DOE"
Nos. 1 through 10, said names being fictitious
and unknown to plaintiff but intending to be the
recipients of any voidable transactions made by
SOHOBROOMECONDOSLLC,
Defendants.
"Board"
Plaintiff Board of Managers (the or "Plaintiff") of 570 Broome
Condominium (the "Condominium"), by its attorneys Schwartz Sladkus Reich Greenberg Atlas
LLP, as and for its complaint, alleges as follows:
NATURE OF THIS ACTION
1. This is a case of a residential condominium apartment building located at
570 Broome Street, New York, New York (the "Building") whose sponsor/developer utterly failed
to construct it in accordance with the promises and representations made in the offering plan
pursuant to which the sponsor offered units of the Condominium for sale (the "Offering Plan").
2. The Offering Plan promised purchasers a building that would be designed
and constructed in compliance with all applicable laws and the terms of the plan, and that would
be safe in which to live. Instead, the unit owners were left with a building rife with defective
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conditions that in numerous respects violate applicable government regulations, compromise the
quality of life of residents, and deviate from express promises and material representations in the
Offering plan.
3. Due to the shoddy workmanship and construction practices of defendants
and their contractors, there is a laundry list of deficiencies at Building common areas and
individual units, including, among other things, a systemic lack of firestopping creating a blatant
life-safety issue; significant cracking at several locations through the concrete slab; misaligned
panels and façade repairs that fail to meet acceptable industry standards; pervasive window defects
and air, water, and noise infiltration issues; wood flooring at common areas and in apartments that
buckle, are out of level, and fail to meet an acceptable industry standards; and insufficient
heating/cooling and essive noise from HVAC units serving the individual condominium units.
4. To make matters worse, the sponsor simply neglected to construct some of
the essential, expressly promised and/or Building Code-required components and design elements
of the Building as offered.
5. Unfortunately for the unit owners, the issues at the Condominium do not
end there. Rather, the sponsor and its principals deliberately understated the Condominium budget
and common charges to induce purchasers to purchase apartments, then substantially increased the
budget and common charges after nearly all Sponsor-owned units were sold. This has diminished
the value of units by nearly 20% and resulted in a massive assessment after barely two (2) years
of Condominium operation to account for the deficit.
6. Finally, the sponsor and its business partners have pilfered the sponsor's
assets, walking away with millions of dollars in distributions while leaving the Board and the
residents in the lurch.
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7. Plaintiff therefore brings this action to remedy the breaches of contract,
misrepresentations, fraudulent conveyances/voidable transactions, and other wrongful conduct on
the part of the defendants, to obtain redress for the defective conditions that exist throughout the
Building, and to hold accountable the sponsor/developer, its principals, and investors who
profiteered off the Building's numerous flaws and the sponsor's duplicity.
PARTIES
8. The Board consists of the duly elected members of the Condominium's
board of and is charged, pursuant to Article Section 7 of the Condominium's By-
managers, III,
Laws (the "By-Laws"), with governing the affairs of the Condominium.
9. The Condominium is an unincorporated association of the Building's unit
owners (the "Unit Owners") and was formed pursuant to a Declaration of Condominium filed and
recorded, pursuant to Article 9-B of the Real Property Law, in the Office of the City Register of
the City of New York on September 30, 2019.
10. Pursuant to Real Property Law § 339-dd and Article III, Section 7(13) of
the By-Laws, the Board is empowered to bring this action on behalf of the Condominium and the
Unit Owners. The commencement and prosecution of this action was ratified by the Board at a
duly called meeting for that purpose occurring on February 16, 2023.
11. Defendant Soho Broome Condos LLC ("Sponsor") is the sponsor/developer
of the Condominium and a New York limited liability company authorized to do business in the
State of New York. Upon information and belief, Sponsor maintains an office address at 136
10th 2nd
North Street, PlOOr, Brooklyn, New York 11249.
12. Defendant YNC Equity Partners LLC ("YNC") is a New York limited
liability company authorized to do business in the State of New York. Upon information and
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36th 6th
belief, YNC maintains an office address at 149 West Street, Floor, New York, New York
10018. At all relevant times, YNC was member and principal of Sponsor.
13. Defendant Murat Agirnasli ("Agirnasli") is an individual who, upon
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information and belief, maintains a business address at 149 West Street, Floor, New York,
New York 10018. From the Board's inception until in or about July 2022 (the "Sponsor Control
Period"), Sponsor had the right to appoint a majority of members of the Condominium Board. For
the entire Sponsor Control Period, Agirnasli served as a member and officer of the Board and was
appointed to that position by Sponsor.
14. In addition, Agirnasli is a member, manager, and principal of Sponsor, and
signed on behalf of Sponsor and in his personal capacity the Certification by Sponsor and
Sponsor's Principal (the "Sponsor's Certification"), sworn to March 1, 2017, in the Offering Plan.
Further, Agirnasli directly and personally participated in the conduct and transactions described
below, as well as caused Sponsor to act as alleged herein.
15. Defendant Erden M. Arkan ("Arkan") is an individual who, upon
information and belief, maintains a business address at 136 North 10th Street, 2nd Floor, Brooklyn,
New York 11249. For the entire Sponsor Control Period, Arkan served as a member and officer
of the Board and was appointed to that position by Sponsor.
16. In addition, Arkan is a member and principal of Sponsor and signed in his
personal capacity the Sponsor's Certification. Further, Arkan directly and personally participated
in the conduct and transactions described below.
17. Defendant Selim Akyuz ("Akyuz") is an individual who, upon information
and belief, maintains a business address at 136 North 10th Street, 2nd Floor, Brooklyn, New York
11249. For the entire Sponsor Control Period, Akyuz served as a member and officer of the Board
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and was appointed to that position by Sponsor.
18. In addition, Akyuz is a member and principal of Sponsor and signed in his
personal capacity the Sponsor's Certification. Further, Akyuz directly and personally participated
in the conduct and transactions described below.
19. Defendant Hilmi U1gur Aydin ("Aydin") is an individual who, upon
information and belief, maintains a business address at 136 North 10th Street, 2nd Floor, Brooklyn,
New York 11249. Aydin is a member and principal of Sponsor and signed in his personal capacity
the Sponsor's Certification. Further, Aydin directly and personally participated in the conduct and
transactions described below.
20. Agirnasli, Arkan, Akyuz, and Aydin are collectively referred to as "Sponsor
Defendants."
21. Defendant Erman Agirnasli ("Erman") is an individual who, upon
information and belief, maintains a business address at 136 North 10th Street, 2nd Floor, Brooklyn,
New York 11249. For approximately the last year of the Sponsor Control Period, Agirnasli served
as a member of the Board and was appointed to that position by Sponsor.
22. Agimasli, Arkan, Akyuz, and Ennan are collectively referred to as
Members."
"Sponsor Board
23. Defendant Agime Group, LLC ("Agime") a New York limited liability
company authorized to do business in the State of New York. Upon information and belief, Agime
maintains an office address at 1373 Broad Street, Suite 200B, Clifton, New Jersey 07013.
Doe" Doe"
24. "John Nos. 1 through 10 and "Jane Nos. 1 through 10 are named
herein pursuant to CPLR §1024, said names being fictitious and unknown to Plaintiff as of the
date of this amended complaint but intending to be the individual and entity recipients of any
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fraudulent conveyances or voidable transactions made by Sponsor.
BACKGROUND
25. The Building, which is ground-up new construction, is a 25-story building
with 54 residential units and one commercial unit. It also contains 14 storage spaces located in the
cellar.
26. The total value of Sponsor's initial offering for the 54 residential units was
$148,870,000. All residential units have been sold.
27. Using the Offering Plan as a promotional tool, Sponsor commenced
marketing units of the Condominium for sale and, starting in or about February 7, 2019, entering
into purchase agreements. Sponsor continued selling units of the Condominium throughout the
Building's construction and thereafter, with the first closing on the sale of a residential unit
occurring on or about November 22, 2019.
28. In the Offering Plan and other marketing materials, as well as through
communications with prospective purchasers, Sponsor represented that the Condominium and its
units are constructed in accordance with all applicable government codes, rules, regulations, the
filed building plans, and the representations in the May 30, 2017 Description of the Property and
Specifications ("Description of Property") in the Offering Plan.
29. this was not the case at as multiple promised and/or code-
However, all,
required Building components and features are missing and many of the components and features
that are installed suffer from material defects, exhibit poor workmanship and shoddy construction
practices, or are contrary to what Sponsor depicted the Building and its units to be.
30. Adding insult to injury, to induce unsuspecting homebuyers to purchase
units in the Condominium and not disrupt sales, upon information and belief, Sponsor intentionally
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understated the operating budget for the Condominium knowing full well that Condominium
operating expenses would be exponentially higher than what they were represented to be in the
Offering Plan.
31. Because the specified common charges in the Offering Plan and several
amendments were insufficient to cover operating costs, in February 2022, the Sponsor-controlled
Board inexplicably and without warning raised common charges by an exorbitant 65%, causing
the value of units to plummet overnight. Yet, conveniently for Sponsor, at the time of the increase,
it owned only two (2) residential units (although these 2 units had gone into contract), which it
sold shortly thereafter and avoided the considerable financial impact the increase had on owners.
In short, the Sponsor waited until all units were sold or in contract and finally disclosed the true
common charges which were 65% higher than ones advertised at the time of units being marketed
and sold to unit owners.
32. In or around May 2022, the Sponsor-controlled Board also imposed
approximately a $500,000 assessment (which was disclosed in or around February of 2022),
notwithstanding that the Condominium had been in operation for only a little more than two (2)
years, to make up for budgetary shortfalls stemming from underestimated common charges while
the Residential Units were being marketed and sold.
FIRST CAUSE OF ACTION
AGAINST SPONSOR
(Breach of Contract: Damages)
33. Plaintiff repeats and realleges all prior paragraphs.
34. Each Unit Owner of the Condominium who purchased a unit from Sponsor
entered into a form written agreement with Sponsor, as seller, for such purchase (the "Purchase
Agreement[s]").
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35. The Offering Plan is incorporated by reference in the Purchase Agreement,
which provides that if there is any inconsistency between the terms of the Purchase Agreement
and the terms of the Offering Plan, the Offering Plan controls.
I. Problematic Conditions Regarding Construction of the Building
a. Offering Plan Terms and Requirements
36. The Offering Plan, at page 21, provides that "[t]he Units, the Building
containing them and all other improvements will comply with all applicable rules, regulations,
laws, and other requirements of all governmental authorities having jurisdiction thereof, including
those governing zoning and construction, and the Sponsor and all other persons engaged by the
Sponsor in connection with this Plan have complied and will comply with all applicable laws, rules
and regulations and other governmental requirements pertaining thereto. Construction of the
York."
Condominium will comply with the Building Code of the City of New
37. The Offering Plan, at page 84, requires Sponsor to "diligently and
expeditiously complete construction of the Condominium substantially in accordance with the
specifications."
plans and Upon information and belief, the plans and specifications called for the
Building's construction, installation, and design to be in accordance with local and customary
construction practices.
38. At page 87 of the Offering Plan, in whic