A Michigan judge dismissed a $6 million lawsuit stemming from the bitter ownership dispute over 1 Park Row, ruling that the fight over the Lower Manhattan luxury tower belongs in New York courts.
Kent County Business Court Judge Curt A. Benson sided with the building’s original developer, an affiliate of New York-based Circle F Capital, which argued that claims brought by entities tied to its new partner, Grand Rapids-based Eenhoorn Development, were subject to an agreement requiring disputes to be litigated in New York.
The conflict stems from a $93 million restructuring deal in March that gave Eenhoorn an 80 percent stake in the project, while Circle F retained a 20 percent interest and rights to several units.
After the relationship soured, Eenhoorn’s group issued default notices, declared Circle F’s remaining stake forfeited, and sued in Michigan to recover over $6 million. Circle F’s attorneys at Oved & Oved successfully argued that the alleged defaults fell under an agreement requiring disputes to be litigated in New York.
In New York, Circle F is actively pursuing a $20 million lawsuit against Eenhoorn, which alleges that Eenhoorn took control of a project conceived as a luxury condominium and ultimately turned it into rentals. That suit challenges the forfeiture and accuses Eenhoorn of using associates as “sham buyers” to artificially hit the state’s 15 percent sales threshold required for a condo conversion. Circle F alleges Eenhoorn then backed out of those contracts and pivoted the building to rentals without properly amending the offering plan.
“Our adversaries tried to win a race to the courthouse by filing a narrow Michigan action designed to gain a tactical advantage,” said Terrence and Darren Oved, attorneys for Circle F’s entity. “The Michigan court rejected their procedural maneuvering and determined the case belongs in New York, where our client’s rights can be fully vindicated and the defendants can be held fully accountable for their misconduct.”
Attorneys for Eenhoorn Development’s corporate entity did not return a request for comment by press time.
Completed in 2025, the 24-story luxury tower at the former J&R Music site is currently leasing its 62 residences as high-end rentals rather than selling them as condominiums.
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