Golenbock Eiseman Assor Bell & Peskoe LLP Wins Breach of Contract Suit for Atlantic Development Group

NEW YORK, NY (March 26, 2010) –Attorneys at Golenbock Eiseman Assor Bell & Peskoe LLP have won summary judgment on behalf of Atlantic Development Group (Atlantic), in a breach of contract action against New York City real estate developer Larry Silverstein’s 99 Church Investors LLC. Golenbock litigation partner Adam C. Silverstein served as lead counsel for Atlantic. Michael Stolper, of The Stolper Group, was co-counsel on the case.

Atlantic, a leading developer of affordable housing in New York City, and 99 Church, a special purpose entity formed by Larry Silverstein’s Silverstein Properties, Inc. and the California State Teachers’ Retirement System (CalSTRS) to develop a mixed use luxury tower at 99 Church Street in lower Manhattan, entered into two contracts for 99 Church to purchase from Atlantic a total of $6,300,000 in 421-a tax certificates. 421-a tax -certificates are transferable tax benefits offered by the NYC Department of Housing, Preservation and Development (HPD) to subsidize and promote the development of affordable housing.

The contracts provided that in the event that Atlantic was ready, willing and able to perform, and for any reason 99 Church failed to deliver the purchase price and such default was not cured within ten business days after written notice, Atlantic could draw, as liquidated damages, on two letters of credit totaling $3,150,000 that 99 Church had deposited into escrow as security for its performance.

Atlantic brought suit in April 2009, alleging that 99 Church reneged on the deal when, due to the credit freeze, Mr. Silverstein suspended development of the 99 Church Street project, for which the certificates had been bought. On March 17th, Justice Melvin L. Schweitzer of the Supreme Court of the State of New York, New York County, Commercial Division agreed, holding as a matter of law, that 99 Church had breached its agreements with Atlantic and there was no basis for asserting that Atlantic had not complied with all pre-closing steps required to be taken by the agreements.

The order was filed on March 23, 2010. Attorney fees were awarded to Atlantic Development Group.

Said Adam Silverstein, “The sale of 421-a tax certificates has been critical to the development of affordable housing throughout this City. We are pleased that, through our efforts, a party that sought to back out from its agreement to purchase such certificates, to the detriment of our client, Atlantic, was held accountable by the courts.”

About Golenbock Eiseman Assor Bell & Peskoe
Golenbock Eiseman Assor Bell & Peskoe LLP is a full-service Manhattan law firm of approximately 50 attorneys which has served its clients’ complex litigation and corporate needs for over 25 years. The firm takes pride in its sophistication, experience and ability to take on major engagements for its domestic and international clients while also maintaining a hands-on, personalized approach to all matters.

About Atlantic Development Group
As a neighborhood builder, Atlantic Development Group is devoted to preserving and enhancing New York’s status as America’s greatest urban center. Founded in 1995 by Peter Fine and Marc Altheim, Atlantic has become one of New York’s leading real-estate companies, as a developer, owner and manager of properties totaling nearly $2 billion. Inspired by Peter and Marc’s background in social work, the organization develops housing that speaks to the lifestyle needs of its residents, for New Yorkers of various economic means. Since its founding, Atlantic has grown into a fully integrated real estate firm, with 250 employees and subsidiaries responsible for development, construction and building management. Including projects currently in construction, Atlantic has developed 70 residential and mixed-use properties, with 6,500 housing units and 300,000 square feet of retail and community space.