McDonald’s wants ex-StreetEasy CEO to demolish NYC penthouse

The co-founder and former CEO of StreetEasy is embroiled in a bitter legal feud with McDonald’s for building an allegedly illegal posh penthouse atop a Manhattan apartment building — roof space the fast-food giant claims it owns.

Michael A. Smith, who sold the popular real estate site to Zillow for $50 million in 2013, owns the penthouse at 147 Reade Street in Tribeca — which includes four outdoor decks and a swimming pool, according to the lawsuit filed just before Thanksgiving by McDonald’s

It was expanded in 2007 and totals about 3,700 square feet atop a five-story condominium project called Tribeca, which was built in 1987 and includes 149 Reade Street, 165 Chambers Street and 303-307 Greenwich Street.

McDonald’s claims it bought four commercial units in 1990 and negotiated several easements — one of which allowed the company to install a cooling tower on the roofs of 147 and 149 Reade, according to court documents. which was first reported by Bloomberg News.

According to the company, it used the space until 2006, when it replaced the cooling tower with a new system that did not require it to take up space on the roofs.

The next year, Smith got approval from the board to expand the penthouse unit, which involved demolishing the portion of the easement to which McDonald’s claimed rights.

McDonald’s wants the roof restored to its original condition and is seeking at least $10 million in damages, according to court records.

In 2012, McDonald’s said it encountered “severe HVAC issues” and needed to install a water tower and condensers. The company said it never relinquished its rights to the rooftop space.

Years of back and forth between McDonald’s and the condo board followed. The board, whose president at the time was Smith, denied McDonald’s request to have its HVAC unit installed in the apartment’s courtyard.

In 2021, McDonald’s informed the board that it was exercising its original easement, according to the lawsuit.

But a consulting engineer told the company the roof space was “no longer there” because a penthouse was being built on top of it.

Smith has claimed that the board properly approved the renovation plan in 2007 and that the work was fully completed and visible in 2010.

His attorney, Emily Reisbaum, referred Bloomberg to a 2021 motion to dismiss, in which Smith says the statute of limitations had expired.

The Post has sought comment from Reisbaum and McDonald’s.

Smith co-founded StreetEasy in 2006 with Sebastian Delmont, Doug Chertok and Nataly Kogan.

After payment in 2013, he has held several senior positions at a number of tech companies.

Smith’s penthouse has been the subject of controversy in the past, according to Bloomberg News.

In 2021, the condominium board alleged that Smith abused his position as president to mislead other owners about the expansion. The board, which claimed Smith hid the true extent of the penthouse expansion, is seeking at least $5 million in damages.