Former StreetEasy CEO locked in tense $10 million battle with McDonald’s over posh New York apartment

The former CEO of StreetEasy is locked in a tense $10 million legal battle with McDonald’s over claims he illegally built a penthouse on the roof they own.

Michael A. Smith is being sued by the fast food giant over the construction of the luxury apartment on top of a building in Manhattan.

Smith built the penthouse by extending his existing apartment upwards, but McDonald’s claims it owns the roof space that houses the extension.

The company says the space was reserved for heating, ventilation and air conditioning (HVAC) equipment used by a McDonald’s around the corner, according to the lawsuit obtained by Bloomberg.

McDonald’s is demanding 10 million dollars in compensation, as well as the demolition of the penthouse apartment.

The conglomerate bought four commercial units in the original five-storey building back in 1990 as part of the initial development.

It said it negotiated a number of terms, including installing cooling equipment on the roof where Smith’s penthouse is located.

However, in 2006 a new cooling system was installed and a cooling tower was no longer required.

The former CEO of StreetEasy is locked in a tense $10 million legal battle with McDonald’s amid claims he illegally built a penthouse on the roof they own

Michael A. Smith (right, pictured with Zillow CEO Spencer Rascoff) is being sued by the fast-food giant over the construction of the luxury condo atop a Manhattan building

McDonald’s claims they never gave up the rights and now wants to reinstall HVAC equipment because its nearby restaurant has been having problems.

The filing adds that McDonald’s called for the equipment to be installed in the building’s courtyard, but that this was “soundly rejected” by the apartment’s board.

In 2021, McDonald’s informed the board that it wanted to exercise its rights, but was apparently told that the space no longer exists as it has been converted into a penthouse.

But Smith claims his plans to expand to the property were fully approved by the board in 2007 and construction was completed in 2010.

His attorney Emily Reisbaum said the statute of limitations precludes any legal challenge. The lawyer for McDonald’s, Dan Ansell, declined to comment.

The renovation more than doubled the apartment from 1,253 square meters to 3,7000.

Smith co-founded StreetEasy in and sold the website to Zillow for $50 million in 2013. He currently serves as CEO of Tribeca Heavy Industries.

According to Bloomberg, his penthouse has been the subject of previous disputes.

McDonald’s says it owns the roof space and will use it to store HVAC equipment

In 2021, the condominium board accused Smith of abusing his position to mislead other homeowners about the expansion. The allegations surfaced in a lawsuit seeking $5 million in damages.

The property is part of the exclusive set of condominiums that make up 147 Reade Street, a 22-unit building.

DailyMail.com has contacted Smith and McDonald’s representatives for comment.