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Donna Karan Brand Sues Neighbor Over Alleged Rat Infestation

A West Village storefront by designer Donna Karan is suing its neighbor for its alleged role in creating and permitting a rat infestation so severe that it has staff members fearing for their safety. 

The neighboring property, associated with William Gottlieb Real Estate, is threatening its business operations and posing a health crisis, Urban Zen said in a complaint filed Friday in New York Supreme Court. The defendant disputes the accusations. 

The properties in question are 705 Greenwich Street, where Urban Zen has its store, and 703 Greenwich Street, a vacant lot connected to William Gottlieb Real Estate. 

The designer founded Urban Zen in 2007 to support her cultural preservation nonprofit of the same name. The brand, which also has locations in the Hamptons and Palm Beach, has high-end apparel, accessories and home furnishings, with cashmere sweatpants going for $1,395 and a suede romper advertised at $3,495.  

Urban Zen alleges that the rat problem began in 2024, when a downed tree was removed but its stump remained. That, along with rubble and debris, created “burrowing channels” that allowed rats to access the Urban Zen property, according to the store. A dumpster on the vacant lot created “a persistent and continuously replenished food source” for rodents, according to the complaint. 

The brand claims the infestation has caused “reputational harm, loss of clientele, and financial damage” after the store had to cancel events and business activities due to the presence of rats on the property. 

The store has also said the infestation is a “threat to human life and health,” since it exposes those in the store to diseases, including hantavirus. 

“Every employee, client, guest, and member of the public who enters the Premises is at risk,” Urban Zen said in its complaint.

The LLC that owns the neighboring vacant lot, 703 Greenwich Street, LLC, denied the claims, telling The Real Deal they were “spurious” and the property has been well-maintained for half a century. 

“We have consistently retained extermination services for this site for years and while we have only recently been made aware of complaints suggesting that additional extermination services may be needed, we take such matters seriously,” a representative for the LLC said in a statement. “In the past, no issues were brought to our attention in a manner that indicated the need for this level of intervention.”

The property owner said it would evaluate the situation and hire additional help as needed, but they may not be at fault for any vermin issues. A neighboring retail property or the many eateries in the area could be to blame. 

“We strongly encourage the tenant to fully evaluate their own space, including any such conditions, to ensure that they are not contributing to or facilitating this issue,” the representative said in a statement. “We are disappointed that the neighboring tenant chose to pursue litigation rather than to engage with us in good faith to address their concerns directly.”

The LLC is associated with William Gottlieb Real Estate, the eponymous firm of a prolific downtown property owner who compiled an expansive portfolio before his death in 1999 at 64. He bought more than 100 properties, the New York Times reported, most of them in the Meatpacking District and the far west side of the Village, but rarely sold. His sister, Mollie Bender, took over the business until her death in 2007, according to amNY. 

Gottlieb purchased 703 Greenwich Street in 1966, according to city records. Bender and Gottlieb’s estate transferred the property to an LLC in 2006. 

An attorney for Urban Zen did not immediately respond to a request for comment. 

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