Left rectangle ads redesigned
History of Tribeca Buildings
Eulalie owners forced to sue their landlord
The owners of the noted restaurant Eulalie, which took over the former Bâtard space on West Broadway and White in 2024, have sued their new landlord — the LLC that bought 4-6 White Street from the estate of Peter Matera — after the landlord threated them with termination of their lease.
Eulalie owners Chip Smith and Tina Vaughn took over the lease from Drew Nieporent in April 2023 (Drew had had it since he first opened Montrachet there in 1985), which gave them until December 31, 2036, for the ground floor restaurant and a small portion of the basement for storage. It also gave them access to the rooftop air conditioning unit installed two decades ago, which as tenants, they were required to maintain.
But on June 9, the new landlord — 4-5 White LLC — gave them 15 days to fix what he said were defaults on the lease, including an illegal use of the basement and lack of insurance. That “cure notice” has forced Eulalie to hire a lawyer and fight the charges in court. They have had to provide the court with the lease documents and insurance certificate, which, according to their complaint, was required with the lease signing.
The complaint also says the new landlord charged them with an illegal alteration default — by replacing the 20-year-old compressor on the roof. That, Eulalie’s complaint notes, was also not legit: the existing electrical lines and venting and bracketing systems already existed and were installed 20 years ago; as tenants, they were required to replace the condenser when it broke. The landlord alleges that this was yet another default of the lease.
All in all, the “Cure Notice” issued on June 9 threatens to terminate Eulalie’s lease if they do not fix the defaults, none of which actually seem like defaults.
Eulalie and its lawyers are asking the court to issue a judgement declaring that the Cure Notice was not proper — and they have not in fact defaulted on their lease. They ask that the court prevent the landlord from terminating the lease or attempting to take possession of the premises.
The building was sold just this past February, at which time the Eulalie folks were asked to sign a certificate that they would abide by their lease agreement. The new owners paid $5.9 million.
11 Comments
Comment:
Medium rectangle #1 (top)
Right column rectangle ads
Restaurant guide icon
Eulalie is one of the best restaurants in the neighborhood. Chip and Tina are lovely people, hosts, and great stewards of the space. Eulalie is an asset to the neighborhood and represents the best Tribeca has to offer.
I hope they are able to win against the nameless faceless corp that bought their building and no doubt just want to renovate and release the space at a higher price to someone or something that is not representative of the neighborhood.
Its pretty easy to run a nice restaurant and be an “asset to the neighborhood” when your rent is 13,000 per month for a space that is worth 30.
The nameless/faceless corp you are referring to is someone who purchased the building as an investment. That’s how it works. I think the better question to ask is why is this entire building sold for the same price as a 2,000 square foot condo in the area.
Have you been to Eulalie? What Chip, Tina, and their team accomplish night after night is anything but easy. Very much the opposite. About the last thing they need is any more stress.
Regarding the landlord who purchased the building as an investment: was their “below market rate” lease a surprise? Assuming not, then what’s up? (I’ll leave the answer to you.)
I genuinely hope both sides can find common ground. Eulaie is one of the best restaurants in all of NYC. Would be truly sad to see it disappear.
alright Intheknow, we get it, you’re the landlord. Coming onto the tribeca citizen to defend your position and air out the terms of your lease is not really the way to do it. Read the room in these comments bro.
And agree with Dean – if you buy a building with an existing long term lease at below market terms, that’s a decision between you and god. Trying to footfault someone into a lease termination so you can fill the lease at “market” (btw, again, read the room, lots of failing resuarants in Tribeca becuase people have massively overestimated the “value” of retail in this neighborhood) is literally why people hate landlords.
Hey intheknow I don’t think your comment is doing what you think it will accomplish. You’re obviously the landlord, and knowingly purchasing a building with an existing lease that you claim is more than half below market and then complaining that you’re the victim will not garner you the sympathy you crave. This is a neighborhood with people and families that care about the community, the businesses and their owners. The last thing we need in Tribeca is another landlord willing to let their commercial space sit empty for years because of greed. We all wish Chip and Tina the best of luck fighting this bogus lawsuit.
so sorry , Chip and Tina.
this all sounds too familiar
good luck
Presumably the new owners bought the building subject to the existing lease and had an opportunity to review it before they closed.
The devil is in the details, of course, but the three claimed defaults sound pretty shaky. Unless there are additional facts supporting the landlord’s actions, it sure sounds like they are trying to bully the tenant into leaving or paying more rent.
To bring a lawsuit about this stuff seems extreme. If the tenant’s insurance is not in compliance with the stated requirements in the lease, then that can be fixed. As for the storage area, the lease (or some ancillary agreement) either includes it or it doesn’t. It’s hard to tell what the issue is with the compressor. Even if the tenant didn’t strictly follow the applicable procedural requirements in the lease regarding alterations, the compressor has now been installed, right? Does the landlord want them to remove a brand new compressor? Why? Is the landlord saying that the new unit adversely affects their property or is not technically compatible with the existing electrical and venting equipment?
Lots of questions, but litigation should be a last resort IMO.
You ever own a building then have to absorb liability on a 7 figure injury lawsuit because the tenant cheaped out on insurance coverage?
I think it’s called due diligence and sounds like something the new owner (likely you) failed to conduct.
I knew Peter Matera well before his passing. In fact I’m the only person he ever sold a building to (he sold a couple vacant lots) before his unfortunate passing. He only did so because he could see I too cared. He knew what he was doing when he gave Eulalie the sweetheart lease he did, I know because he told me to my face. He cared far more about the neighborhood than money. As a landlord you know what you’re buying into, they knew this lease was there and was legitimate, they’re morons who have zero chance of winning by just harassing the restaurant and all they’re doing is just giving us other decent landlords bad names.
My husband and I truly love this restaurant, it’s our favorite in the city. Such a wonderful atmosphere, all the staff are so amazing as well. It’s a shame this greedy and shameless landlord is putting Tina and Chip through this nonsense. Hoping T and C prevail in court.