In 1975, plaintiff Barry Fox leased a rent-stabilized apartment at 12 East 88th Street in Manhattan from nonparty Nostra Realty Corp. In 1996, Fox agreed with Nostra to combine his apartment with a neighboring unit, and to enter into a market rate lease. At the time the units were combined and purportedly deregulated, the building was receiving J-51 tax benefits. In 2008, at Fox's suggestion, Nostra entered into a renewal lease with plaintiff MBE Ltd., an entity wholly owned...
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