Two Compass brokers, Brett Weinblatt and Ralph Hanan, are suing Triangle Equities for unpaid commissions related to a 150,000-square-foot Tesla lease in College Point, Queens. They claim they are owed nearly $6 million.
The lease involves a former Toys-R-Us, Party City, and movie theater site. Tesla plans to use the space for sales, service, and delivery.
The brokers allege they introduced Tesla to the landlord and negotiated the lease, submitting a letter of intent specifying a 4.75% brokerage fee. Triangle Equities initially agreed but later refused to pay. The brokers sued in July and placed a mechanic's lien on the property, which Triangle then discharged with a bond.
The 15-year lease is worth nearly $123 million to the landlord. Triangle Equities purchased the site for $9.8 million in 2000 and secured a $50 million loan in late 2023.
Triangle Equities has not responded to requests for comment. The brokers issued a statement expressing disappointment at Triangle's actions.
Two Compass brokers are battling Lester Petracca’s Triangle Equities for commissions on a blockbuster Tesla lease.
Triangle has refused to fork over the payment to Compass commercial brokers Brett Weinblatt and Ralph Hanan, who represented Tesla in a 150,000-square-foot lease at 30-02 Whitestone Expressway in College Point, they allege in a lawsuit. The pair are demanding almost $6 million.
Lawyers for Triangle did not respond to a request for comment. Triangle COO Evan Petracca referred questions to a spokesperson, who did not immediately respond to a request for comment.
The brokers introduced Tesla to the landlord and “continued to foster the relationship” during months of negotiations, the brokers claim. They submitted a letter of intent requiring Triangle pay all broker commissions, as is typical in commercial leases. The landlord did not object over an eight-month period, despite “dozens of changes” to the document, according to their suit.
The brokers proposed a 4.75 brokerage fee for the initial term of the lease, which will net the landlord nearly $123 million over 15 years. Triangle “suddenly shifted gears” and objected to the fee structure a month before the lease was finalized in May and refused to pay them, the suit alleges.
The brokers sued the landlord in July and placed a mechanic’s lien on the property. Triangle filed a bond to discharge the lien.
“We are extremely disappointed in Triangle Equities’ underhanded attempt to cheat us out of our well-earned commission,” the brokers said in a joint statement.
Triangle Equities bought the site from the city for $9.8 million in 2000, according to New York City records. Records show a $50 million loan on the property was secured from Centennial Bank in late 2023.
The site formerly housed a Toys-R-Us, Party City and College Point Multiplex. The movie theater shut its doors on May 5. The automaker plans to use the space for sales, service and delivery, Hanan said. Tesla has one service center in Queens, on Van Dam Street in Long Island City.
Filings show a 153,000-square-foot retail and manufacturing development is planned. It will include more than 700 parking spaces. Architectural firm Ceso is collaborating with Triangle Equities on the build-out for Tesla.
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