However, Alrose Steinway soon discovered a disturbing reality: the amendment quietly eliminated a “valuable option right” initially embedded in the 2014 lease. This right would have enabled the company to purchase two properties specified in the lease for a mere $11 million in 2023.
Rosenberg, heeding Epstein’s counsel, had signed the document without scrutinizing the amendment’s content. It wasn’t until after the signature that a shocking revelation emerged. The option had been voided, a fact brought to Rosenberg’s attention by his broker on the very day of the signing.
In the aftermath, a humbling admission emerged from Epstein himself. During a phone call with Rosenberg, he admitted his error, acknowledging multiple times that he had blundered, as detailed in the complaint.
Jaspan Schlesinger $12M Malpractice Suit : A Costly Turn of Events
By August 2016, Alrose Steinway had entered into an agreement to purchase the same buildings for a staggering $14.5 million. To facilitate the 10% down payment, the company had to part with a 25% interest in the properties, securing additional funds through a two-year mortgage at an interest rate of 10.5%. By this point, the properties had burgeoned in value to an estimated $25 million, significantly diminishing Alrose Steinway’s bargaining position.
Settlement Terms Shrouded in Secrecy
The terms of the settlement reached last Thursday remain veiled in secrecy. However, one stipulation of the agreement appears to hint at a financial component: “[U]pon funding of the settlement provided in the settlement agreement, a stipulation of discontinuance with prejudice, currently held by defense counsel in escrow pending funding, will be filed with the court.”
