Katan Group has lost another battle in its war to block partner CPC Resources from selling the Domino Sugar factory site to Two Trees Management.
Katan claims CPC failed to find the best buyer or a high enough price for the project, but last week a New York State judge dismissed the company’s lawsuit alleging CPC breached their contract, Crain’s reported. The ruling found that Katan “did not have [the] right of first refusal on the property.”
A separate lawsuit Katan filed seeking a preliminary injunction to halt the sale is still pending.
Earlier this year, CPC signed a deal to sell the site to Two Trees for about $180 million, and the transaction is slated to close in mid-October. CPC and Katan had originally partnered to transform the 11.2-acre industrial site into a $2 billion mixed-use development with 2,200 units of housing along the Williamsburg waterfront.
Katan’s attorney declined to comment, but Crain’s said that Katan could appeal the decision.
CPC said in a statement to Crain’s that it is “extremely pleased that the court has once again found Katan’s allegations meritless, and looks forward to closing the transaction with Two Trees.” [Crain’s] – Leigh Kamping-Carder