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August 19, 2019Cart

Business

by Westchester County Business Journal
by WCBJ

Ascensia sues Reckson for $2.9M over water-damaged Valhalla labs

100 Summit Lake Drive.

Ascensia Diabetes Care US Inc. has sued its landlord, Reckson Operating Partnership, for $2.9 million over leaks that have damaged crucial labs in Valhalla.

Ascensia claims that Reckson failed to repair and maintain offices and labs at 100 Summit Lake Drive, in a complaint filed in Westchester Supreme Court.

“Despite Reckson’s assurances that the roof would be repaired in the short term, and replaced in spring 2019,” the complaint states “the leaks have continued and intensified and (the) roof has not been replaced.”

Reckson, a division of SL Green Realty Corp. in Manhattan, declined to tell its side of the story because its policy is not to comment on ongoing litigation, spokeswoman Erin Holin said.

Ascensia, based in Parsippany, New Jersey, leased 65,000 square feet from Reckson in  May 2017, at nearly $1.7 million a year for 11 years.

Then Ascensia invested $6 million to build state-of-the-art facilities, including a crucial low humidity lab for research, development and testing of diabetes treatments.

Reckson, according to the complaint, also had agreed to reimburse $2,935,000 to Ascensia for the alterations.

Ascensia hired the contractor, Pavarini North East Construction Co., and the project was finished by June 2018.

Last August, water began leaking from the roof and damaging the facilities, the complaint states. The low humidity lab, offices and utility room are unusable, and several more labs are partially unusable.

Reckson is responsible for roof maintenance and repairs, according to the complaint, and in December the landlord assured Ascensia that it would replace the roof in the spring.

But Reckson has not replaced the roof and has not reimbursed Ascensia for its $2.9 million share of the renovations, the complaint states.

Delays have allegedly resulted in damages to the wallboard, ceiling tiles, carpet, paint, scientific equipment, furniture and fixtures.

Mold investigation and remediation will have to be done, Ascensia claims, for the labs to comply with scientific standards and regulatory requirements.

Ascensia is demanding payment of $2.9 million for the landlord’s contribution to the initial renovations and for unspecified damages for failure to repair the roof.

Ascensia is represented by Denis Serkin of Peckar & Abramson of Manhattan.