The Real Deal Miami

Investor sues partners over Hialeah property refi

Lawsuit claims industrial park improperly used as collateral in 2010
February 19, 2014 01:30PM

Palmetto Gardens Industrial Park

Palmetto Gardens Industrial Park

A Palmetto Gardens Industrial Park investor has sued his partners in the Hialeah property, claiming they conspired to use the park as collateral for other investments without his knowledge.

MP LLC, a company controlled by Miami-based Seth Nachman, filed the lawsuit against property owner Sterling Holding in Miami-Dade Circuit Court, the Miami Herald reported. Nachman’s company accuses Sterling of using the park to refinancing more than $20 million in defaulting loans on other properties.

The complaint seeks damages and the appointment of a receiver to take control of the property.

An attorney for the Sterling partners named in the suit denied wrongdoing and said the refinancing was approved by nearly 88 percent of the investors when the transaction occurred in 2010. [Miami Herald]Eric Kalis