Condo Board Dispute Halts HMart Tribeca Opening

HMart’s planned Tribeca store at 111 Hudson St. remains unopen due to a condo board dispute.
The board adopted stricter operating rules post-sale, sparking two lawsuits from HMart and its developer.
Restrictions include capped hours, stringent approvals, and fines for violations, stalling store operations.
Both lawsuits are ongoing; the retail space has remained vacant since the dispute began.

Key Takeaways

Retail Standoff Raises Legal Stakes

A long-anticipated HMart location in Tribeca has remained unopened as a dispute with the 111 Hudson Street condominium board escalates, reports the New York Post. After HMart purchased the ground-floor retail space in 2022 for roughly $8M, post-sale rule changes by the board have left the space vacant and led to ongoing litigation.

Strict Rules Stall HMart Launch

According to court filings, after HMart’s development entity acquired the space, the condo board amended the building’s rules—imposing extensive oversight of retail operations. The new rules covered hours, signage, ventilation, inspection costs, and employee access, all requiring board approval. Violations could result in a short cure period and $1,000 daily fines, with sales and leasing now needing board consent.

Legal Actions and Implications

HMart claims the changes made continued operation unfeasible. It says it wouldn’t have bought the unit otherwise. In 2025, the company filed two lawsuits: one against the condo board and another against its attorney. Both suits allege fraud and breach of good faith. Similar governance clashes have surfaced in high-profile disputes involving major office and multifamily assets, underscoring how board control can complicate commercial operations. The cases remain active, leaving the 111 Hudson St. space idle.

Community Awaits Resolution

The ongoing HMart-condo board dispute has left local residents and business observers speculating about the store’s fate. If resolved, HMart would become the southernmost of four Manhattan locations. For now, the high-profile retail spot remains an empty storefront, reflecting broader challenges faced in mixed-use developments when governance conflicts emerge.