M
ichael A. Smith, co-founder and former CEO of StreetEasy, is locked in a contentious lawsuit with McDonald's over a luxury penthouse apartment he owns atop a Manhattan condo building. The fast-food giant claims that Smith built the allegedly illegal structure on roof space it owns.

    The penthouse at 147 Reade Street in Tribeca features four outdoor decks and a swimming pool, according to court documents filed by McDonald's just before Thanksgiving. Smith acquired the unit in 2007, expanding it from around 3,700 square feet atop a five-story condo project built in 1987.

    McDonald's claims that it bought commercial units in 1990 and negotiated easements allowing it to install equipment on the roofs of 147 and 149 Reade Street. The company used the space until 2006, when it replaced its cooling tower with a new system. However, Smith obtained approval from the condo board to expand his penthouse unit in 2007, demolishing part of the easement McDonald's claimed rights to.

    McDonald's is seeking at least $10 million in damages and wants the roof restored to its original state. The company claims it never relinquished its rights to the space on the roofs and that Smith abused his position as condo board president to mislead fellow owners about the expansion. A consulting engineer told McDonald's that the roof space was no longer available due to the penthouse construction.

    Smith has maintained that the condo board properly approved the renovation plan in 2007, and work was fully completed by 2010. His attorney referred Bloomberg to a 2021 motion to dismiss, arguing that the statute of limitations had expired. The dispute is the latest in a series of issues surrounding Smith's penthouse, including a prior lawsuit filed by the condo board alleging he abused his position as president to conceal the true extent of the expansion.