Dubai-based brokerage Greenstone sues Mack Real Estate over fees from $100M Saudi Aramco investment

The company alleges Mack refused to pay $1.8M for arranging meeting with Aramco

TRD New York /
Apr.April 21, 2017 03:15 PM

Greenstone Equity Partners is suing Mack Real Estate Group and its affiliate Claros Mortgage Trust (CMTG) over a $1.8 million payment it says it earned for brokering an eventual $100 million investment.

The suit, filed Thursday in New York State Supreme Court, alleges Mack and CMTG have refused to pay the Dubai-based investment brokerage its fee for arranging a meeting with the Saudi Arabian Oil Company, known as Saudi Aramco.

According to the suit, Greenstone played matchmaker between Aramco and Mack in February 2016. By June of that year, the Saudi oil conglomerate pledged to invest $100 million with Mack. Less than 90 days later, Mack said it was terminating the agreement with Greenstone, which entitled it to a fee for arranging the meeting, the suit alleges.

But in March of 2017 Aramco did in fact follow through on its original commitment to invest $100 million in the real estate firm, the suit says.

Greenstone sent a “success fee” invoice for $1.8 million in April, but Mack rejected the collection effort and said “Aramco’s investment bears no connection to any introduction made by Greenstone,” according to the suit.

“It is clear that the Defendants had no intention of paying Greenstone’s earned Success Fee and that Defendants deliberately and maliciously represented otherwise,” the suit states.

“If there is a lawsuit, we are confident it is baseless and entirely without merit,” said a spokesperson for Mack.

It’s not clear from the suit how the $100 million in capital would be deployed.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
J.C. Penney at the Westfield South Shore mall in Long Island and  J.C. Penney CEO Jill Soltau (Google Maps; Getty)

J.C. Penney to keep Bay Shore outpost open for now

J.C. Penney to keep Bay Shore outpost open for now
Signature Bank CEO Joseph DePaolo and New York Community Bank CEO Joseph Ficalora (Photos via Getty; Facebook; iStock)

NYC’s multifamily lenders see shares tumble in 2020

NYC’s multifamily lenders see shares tumble in 2020
The analysis predicts that office vacancies across the world will continue upward (iStock)

Report: Office market won’t return to glory until 2025

Report: Office market won’t return to glory until 2025
Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
CEO Mark Tritton and 410 East 61st Street (Getty, Google Maps)

Bed Bath & Beyond will permanently close UES store

Bed Bath & Beyond will permanently close UES store
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...