The Real Deal Miami

Resorts World Miami hit with lawsuit over broker commissions at Boulevard Shops

Suit alleges Resorts World fired brokerage to get out of paying 6 percent commission

May 25, 2016 02:15PM
By Sean Stewart-Muniz

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Rendering of renovated Boulevard Shops

Rendering of the renovated Boulevard Shops

Resorts World Miami has just been sued by a brokerage alleging it’s owed commissions for a lease signed at the Boulevard Shops redevelopment site in Miami.

As first reported by the Next Miami, brokerage Prime Sites, Inc. filed suit last week alleging Resorts World Miami, a subsidiary of gaming giant Genting Group, had fired them to get out of paying commissions for a lease executed at the Boulevard Shops.

The suit says Prime Sites was hired in 2013 to seek out tenants for the aging building, which Resorts World is renovating. In exchange, Prime Sites would get a 6 percent commission for any leases that were signed.

The term of the agreement was for one year, according to the suit, and it would be renewed until the developer received its 40-year certification from the county. The re-certification is a county requirement where buildings more than 40 years old are inspected to ensure their integrity.

Two years later, Resorts World fired Prime Sites, according to the suit. Then in March 2016, reports began surfacing that Crystal Cruises — which is also a Genting subsidiary — signed a lease at the Boulevard Shops for 40,000 square feet of space.

Prime contends that because Resorts World has yet to receive its 40-year re-certification, the brokerage’s termination was in violation of their agreement, and Resorts World owes them a 6 percent commission for the Crystal Cruises lease.

Resorts World, however, responded by saying there was no formal agreement between it and Crystal Cruises — despite Crystal Cruises’ signage on the building — which means there’s no lease to speak of.

Prime is suing for breach of contract and a trial by jury.