Preview
FILED: ROCKLAND COUNTY CLERK 01/17/2024 04:39 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 87 RECEIVED NYSCEF: 01/17/2024
Ostrander Exhibit B
FILED: ROCKLAND COUNTY CLERK 01/17/2024 04:39 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 87 RECEIVED NO. 030709/2023
INDEXNYSCEF: 01/17/2024
FILED: ROCKLAND COUNTY CLERK 11/20/2023 06:09 PM
NYSCEF DOC. NO. 54 RECEIVED NYSCEF: 11/20/2023
STATE OF NEW YORK
SUPREME COURT COUNTY OF ROCKLAND
KPL GREEN LLC,
Plaintiff
VS. Index No.: 030709/2023
GREENPORT HUDSON ASSOCIATES LLC, VERIFIED ANSWER WITH
MORGENSTERN DeVOESICK, PLLC, as Escrow Agent, COUNTERCLAIM
and CRAZY BEER WORLD, INC.,
Defendants.
Defendant Greenport/Hudson Associates, LLC ("GHA") as and for its Verified Answer
with Counterclaim in response to the Verified Complaint ("Complaint") of Plaintiff KPL Green
LLC ("Plaintiff"), by and through GHA's attorneys, Woods Oviatt Gilman LLP, herein states as
follows:
. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph I of the Complaint.
Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 2 of the Complaint.
3. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 3 of the Complaint.
4. The allegations in paragraph 4 of the Complaint state a legal conclusion to which
no response is required. To the extent that a response is required, GHA denies the allegations in
paragraph 4 of the Complaint.
5. The allegations in paragraph 5 of the Complaint state a legal conclusion to which
no response is required. To the extent that a response is required, GHA denies the allegations in
paragraph 5 of the Complaint.
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6. Denies the allegations in paragraph 6 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
7. Admits the allegations in paragraph 7 of the Complaint.
8. Admits only so much of the allegations in paragraph 8 of the Complaint as allege
that GHA entered into a Lease Agreement with Defendant Crazy Beer World, Inc. ("CBW"), a
copy of which is annexed to the Complaint as Exhibit B thereto, and denies the remaining
allegations in paragraph 8 of the Complaint as they seek to characterize the document referred to
therein and respectfully refers the Court to the document itself for the meaning and import thereof.
9. Denies the allegations in paragraph 9 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
10. Denies the allegations in paragraph 10 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
11. Denies the allegations in paragraph 11 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
12. The allegations in paragraph 12 of the Complaint state a legal conclusion to which
no response is required. To the extent that a response is required, GHA denies the allegations in
paragraph 12 of the Complaint.
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FILED:
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13. Denies the allegations in paragraph 13 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
14. Denies the allegations in paragraph 14 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
15. Denies the allegations in paragraph 15 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
16. Admits the allegations in paragraph 16 of the Complaint.
17. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 17 of the Complaint.
18. Denies the allegations in paragraph 18 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
19. States that the allegations in paragraph 19 state a legal conclusion to which no
response is required. To the extent a response is required, GHA denies the allegations in paragraph
19 of Complaint.
20. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 20. GHA further denies the allegations in paragraph 20 to the extent that they seek to
characterize the terms of the document referred to therein and respectfully refers the Court to the
document itself for the meaning and import thereof.
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21. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 21 of the Complaint.
77. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 22 of the Complaint.
23. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 23 of the Complaint.
24. Denies the allegations in paragraph 24 of the complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
25. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 25 of the Complaint.
26. Denies the allegations in paragraph 26 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof. GHA affirmatively avers that the Exhibit F email did
not constitute an effective cancelation of the Beer Lease.
27. Denies the allegations in paragraph 27 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof. GHA affirmatively avers that Plaintiff could not accept
Beer World's termination of the Lease Agreement as, upon information and belief, Beer World
had not terminated the Beer Lease as of January 24, 2023.
28. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 28 of the Complaint.
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29. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 29 of the Complaint.
30. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 30 of the Complaint.
31. Denies the allegations in paragraph 31 of the Complaint.
32. The allegations in paragraph 32 of the Complaint state a legal conclusion to which
no response is required. To the extent that a response is required, GHA denies the allegations in
paragraph 32 of the Complaint.
33. Denies the allegations in paragraph 33 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectftâ–ºlly refers the Court to the document
itself for the meaning and import thereof.
34. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 34 of the Complaint.
35. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 35 of the Complaint.
36. Denies the allegations in paragraph 36 of the Complaint.
37. Denies the allegations in paragraph 37 of the Complaint.
38. Denies the allegations in paragraph 38 of the Complaint.
39. Denies the allegations in paragraph 39 of the Complaint.
40. Denies the allegations in paragraph 40 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
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INDEXNYSCEF: 01/17/2024
FILED: ROCKLAND
NYSCEF DOC. NO. 54 RECEIVED NYSCEF: 11/20/2023
41. Denies the allegations in paragraph 41 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
42. The allegations in paragraph 42 of the Complaint state a legal conclusion to which
no response is required. To the extent a response is required, GHA denies the allegations in
paragraph 42 of the Complaint.
43. Denies knowledge or information sufficient to form a belief as to paragraph 43 of
the Complaint.
44. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 44 of the Complaint.
45. The allegations in paragraph 45 of the Complaint state a legal conclusion to which
no response is required. To the extent a response is required, GHA denies the allegations in
paragraph 45 of the Complaint.
46. Denies the allegations in paragraph 46 of the Complaint.
47. Denies the allegations in paragraph 47 of the Complaint.
48. Denies the allegations in paragraph 48 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
49. Denies the allegations in paragraph 49 of the Complaint as they seek to characterize
the terms of the document referred to therein and respectfully refers the Court to the document
itself for the meaning and import thereof.
50. Denies knowledge or information sufficient to form a belief as to the allegations in
paragraph 50 of the Complaint.
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51. The allegations in paragraph 51 of the Complaint state a legal conclusion to which
no response is required. To the extent a response is required, GHA denies the allegations in
paragraph 51 of the Complaint.
52. Denies the allegations in paragraph 52 of the Complaint.
53. Denies and every allegation in the Complaint not expressly admitted, denied or
otherwise controverted heretofore.
AS AND FOR A FIRST AFFIRMATIVE DEFENSE
54. The Complaint, in whole or in part, fails to state a claim upon which relief is
Granted.
AS AND FOR A SECOND AFFIRMATIVE DEFENSE
55. Plaintiffs claims are barred, in whole or in part, by the equitable doctrines of
unclean hands, waiver, estoppel and/or 'aches.
AS AND FOR A THIRD AFFIRMATIVE DEFENSE
56. Plaintiffs claims are barred, in whole or in part, by Plaintiffs failure to mitigate its
daniaues. if any,
AS AND FOR A FOURTH AFFIRMATIVE DEFENSE
57. Plaintiffs claims are barred, in whole or in part, by the doctrines of accord and
satisfaction.
AS AND FOR A FIFTH AFFIRMATIVE DEFENSE
58. Plaintiffs claims are barred, in whole or in part. by reasons of its failure to perform
all obligations incumbent upon it to perform under the operative Contract for the Purchase and
Sale of Real Property.
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FILED: ROCKLAND COUNTY CLERK 11/20/2023 06:09 PM)
NYSCEF DOC. NO. 54 RECEIVED NYSCEF: 11/20/2023
AS AND FOR A SIXTH AFFIRMATIVE DEFENSE
59. Plaintiffs claims are barred, in whole or in part, by the express terms of the
operative Contract for the Purchase and Sale of Real Property, including, without limitation.
Contract Sections 14 and 12.
AS AND FOR A SEVENTH AFFIRMATIVE DEFENSE
60. Plaintiffs claims are barred, in whole or in part, because Plaintiffs damages, if
any, were caused by its own inequitable and culpable conduct.
RESERVATION OF ADDITIONAL AFFIRMATIVE DEFENSES
61. GHA reserves the right to make additional arguments and assert additional
affirmative defense as may become apparent or available as this litigation progresses.
COUNTERCLAIM
62. On or about June 7,2022, Maraki Realty Corp. ("Maraki"), as Purchaser, and GHA
as Seller, entered into a certain Contract for the Purchase and Sale of Real Property ("Contract")
concerning the sale of real property and improvement commonly known as Greenport Hudson
Plaza located in Columbia County at 300 Fairview Avenue, Hudson, New York as more fully
described in the Contract. A copy of the Contract is annexed to the Verified Complaint as Exhibit
A thereto.
63. The Contract was thereafter amended by Addenda to Contract on three different
occasions. Copies of the three Addenda to Contract are annexed hereto as Exhibit A.
64. Pursuant to the initial Addendum to Contract, Maraki was replaced as Purchaser
such that the Purchaser would take title to the Property under the entity name "KPL Green LLC."
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65. Pursuant to Contract Section 2, the purchase price of five million nine hundred
thousand dollars ("$5.900,000") ("Purchase Price") was payable by Plaintiff in cash or certified
funds at Closing. Contract Section 2 further provided;
At Closing, $578,910.00 of the Purchase Price shall be escrowed
(the "Escrow Fund") with Seller's attorneys as Escrow Agent
pending Seller's execution of the proposed lease ("Beer Lease")
with Crazy Beer World, Inc. d/b/a Beer Universe.
66. Contract Section 12 states, in pertinent part: "All representations, warranties and
agreements made by either party shall not survive Closing and Transfer of Title."
67. Contract Section 14 further provides, in pertinent part:
If Seller breaches any of its covenants obligations of Seller
contained in this Contract. . . Purchaser shall be entitled to:
A. Close the transaction contemplated by this Contract, thereby
waiving such breach, default or failure; or
B. Sue seller for performance if this Contract; or
C. Terminate this Contract with the Deposit being returned to
Purchaser. Contract at pg. 7 at §14 (emphasis added).
68. On or about November 8, 2022, the purchase and sale transaction contemplated by
the Contract was closed and title to the Property was accepted by Plaintiff In connection with that
closing, Plaintiff and GHA signed and exchanged a Real Estate Closing Statement ("Closing
Statement"), a copy of which is annexed hereto as Exhibit B.
69. While the Exhibit C Closing Statement provided for a $74,865.38 credit to Plaintiff
for the "Beer Lease," it made no provision for the creation or funding of a $578.910.00 Escrow
Fund in connection with the Beer Lease or otherwise.
70. Upon information and belief, neither Plaintiff nor its attorneys delivered
$578,910.00 of the Contract Purchase Price to GHA's attorneys, Defendant Morgenstern
DeVoesick, PLC ("MDP"), or otherwise made arrangements for the creation of funding of the
Escrow Fund with MDP.
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71. To the contrary. Plaintiff, by way of its attorneys, caused the Purchase Price (as
defined in the Contract) and proceeds of sale to he disbursed as reflected in the Closing Statement.
72. The "Closing" contemplated by the Contract took place on or about November 8,
2022 and title for the Property was transferred to Plaintiff without Plaintiff ever having funded,
created or arranged for the Escrow Fund.
73. Upon further information and belief, the $578,910.00 Escrow Fund was not created
at Closing, but Plaintiff accepted title to the Property and caused the sale proceeds to be
disbursements in accordance with the Closing Statement.
74. Contract Section 21 provides, in pertinent part:
The parties agree that in the event that any disputes in the event that
any dispute arises in any waiver relating to or arising out of this
Agreement, the prevailing party in any Court proceeding will be
entitled to recover an award of its costs of said action including,
but not limited to, reasonable attorney's fees. Exhibit B at pg. 9,
§21 (emphasis in original).
75. At the Closing of the purchase and sale transaction contemplated by the Contract,
Plaintiff accepted a $74,865.38 credit for the "Beer Lease" in lieu of the Escrow Fund.
76. Furthermore, Plaintiff closed the transaction and accepted title to the Property at
Closing without the Escrow Fund having been created or funded, thereby terminating any
obligation to create or otherwise fund the Escrow Fund.
77. Plaintiff knowingly closed the transaction and accepted title to the Property at
Closino without the creation of the Escrow Fund, thereby terminating any obligation GHA may
have had with regard to the Escrow Fund pursuant to the express terms of Contract Section 12.
78. Plaintiff knowingly closed the transaction on or about November 8, 2022, without
the creation of an Escrow Fund, thereby waiving any alleged breach, default or failure by GHA, if
any, with regard to the Escrow Fund pursuant to the express terms of Contract Section 14.
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FILED: ROCKLAND COUNTY CLERK 11/20/2023
NYSCEF DOC. NO. 54 RECEIVED NYSCEF: 11/20/2023
79. Upon information and belief, CBW has never terminated the Beer Lease.
80. By reason of Plaintiffs commencement of this action, GHA has been forced to
retain legal counsel and incur significant expense in connection with this litigation in an amount
to be determined.
81. By reason of the foregoing and otherwise, GHA is entitled to judgment against
Plaintiff in an amount to be determined by the trier of fact, but in no case less than its costs,
disbursements and reasonable attorney's fees incurred in connection with this action.
WHEREFORE, Defendant GHA respectfully requests judgment against Plaintiff KPL
Green LLC, dismissing the Verified Complaint in its entirety, awarding GHA its costs,
disbursements and reasonable attorneys' fees incurred in connection with this litigation together
with interest and awarding such other and further relief as the Court deems just and proper.
Dated: November 20, 2023
WOODS OVI TT GILMAN LLP
By
F. Michael Ostrander, Esq.
Attorneys• for Defendant Greenpor•t/ Hudson
Associates, LLC
1900 Bausch and Lomb Place
Rochester, New York 14604
585-987-2800
fostrander@woodsoviatteom
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FILED: ROCKLAND COUNTY CLERK 11/20/2023 06:09 PM)
NYSCEF DOC. NO. 54 RECEIVED NYSCEF: 11/20/2023
CORPORATE VERIFICATION
STATE OF NEW YORK)
COUNTY OF MONROE) ss:
SUSAN GORDON, being duly sworn, deposes and says that the Deponent is a member-
manager of Defendant Greenport/Hudson Associates LLC; Deponent has read the within Verified
Answer and Counterclaim and knows the contents thereof: that the same are true to Deponent's
knowledge, except as to matters therein stated to be alleged upon information and belief, and as to
those matters, Deponent believes them to be true.
"-\
Susan, Gordon, ember Manager
Sworn to before me this
of November, 2023.
Notary Public
CHAUNCEY D. WILSON
Notary Public, Slate of New York
Monroe County Reg. #01W16
Commission Expires 04/19/
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Answer Exhibit A
FILED: ROCKLAND COUNTY CLERK 01/17/2024 04:39 PM INDEX NO. 030709/2023
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NYSCEF DOC. NO. 55 RECEIVED NYSCEF: 11/20/2023
ADDENDUM TO CONTRACT
SELLER: Creenport/Hudson Associates, LLC
PURCHASER: Maraki Realty Corp.
PREMISES: 300 Fairview Avenue, Hudson, NY 12534
The Contract of Sale shall hereby be amended as follows:
I. The Purchaser shall take title under the entity name "KPL Green LLC".
2 It is agreed upon between Parties that the Due Diligence period has been extended up to
and including August 12, 2022.
3. It is agreed upon between Parties that the date of closing be amended to "on or about
September 26, 2022".
4. An electronic copy of this Addendum shall be deemed an original.
5. All the remaining terms of the contract shall remain the same.
Greenport/Hudson Associates, LLC KPL Green LLC
(
Steven I. Gordon Saari rf -. Konstantitios Paxos, Purchaser
1
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SECOND A DDENDU NI TO CONTRACT
SELLER: Creen port/Hudson Associates, LI.,C
PURCHASER: Maraki Realty Corp,
PREMISES: 300 Fairview Avenue, Hudson, NY 12534
The Contract ofSale. as amended. shall hereby be further amended as follows:
I. It is agreed upon between Parties that the Due Diligence period has been extended up to
and including August 26, 2022
It is agreed upon between Parties that the date of closing he amended to "on or about
October 10. 202r.
1. Purchaser acknowledges that seller has no further obligations to provide to Purchaser any
due diligence. items for its nniew. inctudine but not limited to, any abstract of title and
searches.
4. An electronic copy of this Second Addendum to Contract shall he deemed an original.
5. All the remainirn terms of the Contract of Sale, as amended. shall remain the same.
Cireenporulludson Associates. IC KPI.. Green ••
,
/ ./
/-
I /I , •
13y: 13 V :
Ste‘en .1. ijordon. Member OS.14(6.11(6 PaxoX Purchaser
6... •
/
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ADDENDUM TO CONTRACT
SELLER: Greenport/Hudson Associates, LLC
PURCHASER: Ma raki Realty Corp.
PREMISES: 300 Fairview Avenue, Hudson, NY 12534
The Contract of Sale, as previously amended, shall hereby be further amended as follows:
1, It is agreed upon between Parties that the Due Diligence period has been extended two
weeks up to and including September 9, 2022.
It is agreed upon between Parties that the date of closing be amended to "on or about
October 24, 2022".
3. All the remaining terms of the Contract of Sale shall remain the same.
GreenportiHudson Associates, I.LC KPE, Green LLC.
i
C\11 4 (. :1/ JJ-4/11Q-1 5.c nstatin6s Pax6s, Purchaser
Steven Gordiln, Seller
67,/
/.
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NO. 0.30709•2023
NYSCEE DOC. NO. 3(1) RECEIVE:: NYSCEF: 11 20/2073
Answer Exhibit B
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REAL ESTATE CLOSING STATEMENT
100006 STERN DEVOESICK PLIC
1030 PITTSFORD VICTOR ROAD. gm 700
PITTSFORD. NEW TORN IOU
pmee (0155 6713560 7.19.77999 norpinvesul
100W. Orteapor0N44.66 Mech., LLC
heduen Krt.
Prepaw Felnieo Aram Hukon. New Vol 11514
010600 Navaho 6 1D11
411001T3 TO 510100.
tertlase P,ia 1500.00000
1/.411leveser11/7/20114 S 11100.50 elotned S 411.03 F44445 A4. (1171,21.101.2) S 1473.16
Schmlloos S 57.230.51 s4usted S 15160 wd.y A4.111/1022-4430.131 S 36141.21
000417 Ta5e7 S 53,791.19 44a0cd S 14737 pa day A4. (11/614.12/31/211 5 7.951.11
TOTAL CRE MT] TO SELLER. S 0.947.177.55
SRSQIL£TU1y@CIIMEB1
heptidReet (Doembal 4 Sem R4(655,000 5 2.400.00
Sou- 1164.A.C.4.4 5 430000 44.1eal 5 146.07 pada). A4 (11,12, 11(301311 5 1)10.00
lam. Ely loo 5 16511601 ateureel 5 35105 Keay A4. (117703.11110251 5 6471.10
aro. Achur.olime 5 400124 66usel 5 266.01 way A4. (1/003.11/53rD) S 0.404.10
Roe.Dter Roes S 1.35000 aipsed 5 0531 pocky 44 (11/7X1.110521) 5 140100
005.61.46 5 0.1167.13 •611161 5 22639 podaT A4(11/122.1100011 S 331036
1407. hlorlini a11. lied,. 3 945110 05,11041 3 31 31 0-7,0Y A4.111/7/22.11,31/2.1) 5 73100
Sal. SetradosArcey S 4,131.66 0.40eol 5 30439 per 44y A4 111/7/22-11,3N23) 5 7.34033
1501.F0stertRsOigaseeo S 14010 544d S 10.60 pa ,fay A4.1117741.1110:.4 S 1.52000
teal.. 5 7466131
03906 1101611 5 114000.00
DcpesR 6.4016 LW 11i14.0 5 150000.90
SettrilyDepas74 5 1700.00
TOTAL 41101711110 KRCHASER, 650.24117
RAIA0CRI/VE 5ELLER AT ctosiNc• 5331.01333
0401730 MIMES OF 501101
Sadefettee Rood; Fee 7105
Tereiewieeer Aoimeeni *Moe 10040
UCC.7 Ming F411 130.00
7110074e491e3•0171 200.00
Trusfet T45 C40002i7 Canty 11.600.00
%wham - NY3 2160000
TP.554 500
'fa Holm Wird 71. 3171100
Seal Ems 677.40
To Holm 161100 11tle 67730
Cennissiong 21.42600
To IKON Roby Gm". 1.1C 21X0.00
Coanizakes(3765 07,00000
To NI.= & 1421clap 117.00102
OccerOP76 169.00
To 1.1411o1Cerpersit 54471061s 159.00
5...Nisi. se US 514.1 51122.114.50
1451151.15 Back 3719.52
Candy Pa 051.15 Bak 53300.00
Anat. Pew Coney Omen k More la. 13,00000
losieeeLesd w OryseCees Leithxen PairserLLP 511.050.00
Samoa,BaroneLopla KipeeielTetemedO 5076ne LLP 54 020.00
Sumer Barme ., SD OFZU.0 u.soo.00
Edemas Coml., t4 AST DefiasoteCwohoo 55.000.00
Seurat Pluming Halibut ism000 poc with 613.000 emeOl 0eree) 5000
Tad Ulnae= 5054. 1.362.034.37
Fele /104/115505 500
Lciel Fez 50 Movestere ONO** 3100000
6/31,95.939919 wMapa.w Del it 1590.00
Tee IleepseeeeeD4Ve.elekPLLC 17.50900
TOTAL EXPENSES O