Kramer Levin Wins $12 Million Award for Clients in Connection with Condemnation of Properties to Facilitate East Side Access Project

Kramer Levin Naftalis & Frankel LLP today won an award of approximately $12 million on behalf of two clients, 43rd Street Realty and Tomislava Grgas, in connection with the condemnation of their Long Island City properties by the Metropolitan Transportation Authority (MTA) to facilitate the East Side Access Project which will connect the Long Island Railroad to Grand Central Station.

After a four-day trial, Justice Rios found that the highest and best use of the properties was as mixed-used industrial warehouse and office buildings for owner occupancy. The court held that there is a market for owner-occupied buildings in Queens and that owner-users commonly pay premiums for buildings versus those purchased by investors for leasing purposes. At the time of the taking the buildings were leased to various tenants. However, the court explained that under condemnation law condemnees are entitled to be paid just compensation based upon the highest and best use of the properties regardless of whether that use was the actual use at the time of taking.

Kramer Levin attorneys engaged in the matter include James G. Greilsheimer and Cynthia Lovinger Siderman.