Steve Roth pulls the strings of NYC's top brokers, Koreins say

"For Manhattan real estate brokers, Vornado is a highly relevant and sought-after client. Because landlords like Vornado pay the commissions for both the landlord's and the tenant's brokers, remaining in Vornado's good graces can be vital to a broker's livelihood."

"The Koreins, who own the land under Penn 1, say it's virtually impossible to find an impartial broker to appraise the fair market value of the property because everyone is fearful of arriving at a valuation that would offend Vornado."

"At the heart of the matter is a disagreement over the rent at Penn 1, the 2.5 million-square-foot office tower that Vornado controls through a ground lease with the Korein family. Vornado has controlled the ground lease since 1998."

The Korein family filed a lawsuit against Vornado Realty Trust over a rent dispute at Penn 1, a 2.5 million-square-foot office tower. The Koreins own the land under the property while Vornado controls it through a ground lease established in 1998. When the lease came up for renewal in June 2023, the annual ground rent was supposed to increase based on fair market value. The Koreins claim that Vornado's significant market influence prevents brokers from providing impartial valuations, as brokers fear losing Vornado's lucrative business. Rent estimates varied dramatically, from Vornado's 2022 suggestion of $26 million to lower projections due to market conditions. The parties remain in an appraisal stalemate.

Read at therealdeal.com