City of New York v. Tully

OPINION OF THE COURT

Kane, J.

Prior to August 15, 1972, 77 West 55th Street Associates (Associates) was the lessee of a 20-story apartment house at that address in the City of New York. The fee was owned by Gallery Land Associates (Gallery). Four mortgages covering the lease, and totaling approximately $2,800,000, were acquired by Setaols Realty Corp. (Setaols), an entity wholly owned by Associates, on August 15, 1972. Desiring to establish condominium ownership, Associates was advised by counsel that a leasehold residential condominium was not permitted (Real Property Law, § 339-e, subd 11)…