StreetEasy’s former CEO is in a tense $10 million legal battle with McDonald’s over claims he illegally built a rooftop penthouse they own.

Michael A. Smith is being sued by the fast food giant over the construction of the luxury apartment on a building in Manhattan.

Smith built the penthouse by extending his existing condominium upwards. However, McDonald’s maintains that it owns the rooftop space that houses the expansion.

The company says the space was reserved for heating, ventilation and air conditioning (HVAC) equipment used by a McDonald’s around the corner, according to the lawsuit obtained by Bloomberg.

McDonald’s is demanding $10 million in damages and the demolition of the penthouse.

As early as 1990, the conglomerate purchased four commercial units in the original five-story building as part of the initial development.

It said a number of conditions had been negotiated, including the installation of refrigeration equipment on the roof where Smith’s penthouse is located.

However, in 2006 a new cooling system was installed and a cooling tower was no longer required.

The former CEO of StreetEasy is in a tense $10 million legal battle with McDonald’s over allegations of illegally building a rooftop penthouse they owned

Michael A. Smith (right, pictured with Zillow CEO Spencer Rascoff) is being sued by the fast food giant over the construction of the luxury apartment on a Manhattan building

McDonald’s claims it never gave up the rights and now wants to reinstall the HVAC equipment because the nearby restaurant was having problems.

The filing goes on to say that McDonald’s offered to install the devices in the apartment complex’s courtyard, but this was “firmly rejected” by the condominium board.

In 2021, McDonald’s told the board it wanted to exercise its rights, but was apparently told the space no longer existed as it had been converted into a penthouse.

However, Smith maintains that his plans to expand into real estate were fully approved by the board in 2007 and construction was completed in 2010.

His attorney, Emily Reisbaum, said the statute of limitations precludes any legal challenge. McDonald’s attorney Dan Ansell declined to comment.

The renovation more than doubled the living space from 1,253 square feet to 3,7000.

Smith co-founded StreetEasy and sold the site to Zillow in 2013 for $50 million. He currently works as a general manager for Tribeca Heavy Industries.

According to Bloomberg, his penthouse has already been the subject of controversy.

McDonald’s says it owns the roof space and uses it to store HVAC equipment

In 2021, the condo board accused Smith of abusing his position to mislead other homeowners about the expansion. The allegations surfaced in a lawsuit seeking $5 million in damages.

The property is part of the exclusive condominiums that make up 147 Reade Street, a 22-unit building.

DailyMail.com has contacted Smith and McDonald’s representatives for comment.