The Real Deal New York

Adam Hess’ break with TerraCRG gets more contentious with another lawsuit

Hess says he’s owed $1M for his stake in the company
March 14, 2019 09:00AM

Adam Hess and Terra CRG president Ofer Cohen (Credit: Terra CRG and iStock)

Broker Adam Hess’ departure from TerraCRG has gotten even more contentious, with a lawsuit alleging his former firm owes him $1 million.

Hess left the Brooklyn-focused brokerage with two colleagues to join Meridian Capital Group last year, Crain’s reported. He filed a suit in State Supreme Court claiming the brokerage owes him compensation for his ownership stake in the company.

The lawsuit says that Hess, who was one of the firm’s top brokers, had paid $82,947 for 100,000 ownership units in TerraCRG in two purchases made in 2017 and 2018. It further says the firm opted to buy him out of his stake after he left, but offered him half the $975,814 that Hess claims he is owed for his shares.

The move adds to existing litigation surrounding his departure. Shortly after Hess left, TerraCRG filed a lawsuit alleging Hess and his team took proprietary information, including a list of clients, from the firm. Hess denied those allegations to Crain’s and said he filed a counterclaim for the $500,000 in commissions he said he and his team are owed.

Meanwhile, at Meridian, Hess’ team recently announced the Brooklyn Palisade Portfolio, a $100 million package of rental buildings the team has been hired to market and sell. [Crain’s] — Meenal Vamburkar