Apartment wars: Morgan, Kushner in $25M fight
New York developer Kushman Cos. and King of Prussia's Mitchell L. Morgan Management are suing each other for $25 million left over from their 2007 apartment deal.
The other day we wrote about the dispute between mega-apartment owners Mitchell L. Morgan Management Inc. of King of Prussia vs. American International Group's real estate finance units. In a lawsuit marking time in Montgomery County Common Pleas Court while the parties try to settle, Morgan said AIG has delayed promised payments that were supposed to finance apartments it bought from Kushner Cos., with AIG backing, for $2 billion, in 2007.
Turns out Morgan is also in a cash dispute with Kushner. The New York developer says Morgan won't release the final $25 million from an escrow account to pay for the deal; Morgan has said it doesn't owe because Kushner hasn't complied with all terms of the original deal. Each side has filed suit in Essex County Superior Court in New Jersey, according to people familiar with the dispute.
If the names sound familiar to our politically-minded readers: Kushner sold the properties to Morgan after chief Charles Kushner went to prison, partly for illegal donations to former NJ Gov. Jim McGreevey. Morgan, by contrast, is a national Republican donor.