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SME Capital to transfer Hudson Yards condo building amid NY AG probe
The New York Attorney General says the firm failed to pay property bills and address safety issues, leading to a $700,000 settlement and about $140,000 in unpaid NYC Fire Department fines.
SME Capital Ventures is set to hand over ownership of a nine-unit condominium building at 441 West 37th Street in Manhattan to the condo board following an investigation by the New York Attorney General’s office, Commercial Observer reports. The Attorney General said SME acquired the property out of foreclosure in 2023, then did not meet obligations related to the Hudson Yards site.
The AG said SME failed to pay bills tied to the building and neglected safety violations, which contributed to a settlement requiring payment of $700,000. The office also said residents were left to cover costs including a new $15,824 certificate of occupancy after the firm allegedly failed to report it was the winning bidder and did not acknowledge it owned the building.
Commercial Observer also reported that some units were rented while awaiting buyers, and that 35 formerly homeless people were ousted around the time SME took control, according to The Real Deal. The AG said the NYC Fire Department issued citations for failures tied to fire safety paperwork and other health and safety violations, totaling about $140,000 in unpaid fines.
In a statement attributed to New York Attorney General Letitia James, the office said private equity firms must comply with legal responsibilities to homeowners, and that it would continue holding firms accountable when safety duties are put aside. SME’s Eran Silverberg signed the settlement agreement, and the firm did not immediately respond to a request for comment, according to Commercial Observer.