The Real Deal Miami

Broker sues over $90M condo-hotel sale

Investco wants commission from Related purchase of Fort Lauderdale W
July 18, 2014 11:15AM

Fort Lauderdale W Residences and Hotel

Fort Lauderdale W Residences and Hotel

The $90 million sale of the Fort Lauderdale W Residences and Hotel has closed, and a brokerage is suing in an attempt to get more than $4 million in commissions for the transaction.

Investco Realty filed a lawsuit in Miami-Dade Circuit Court claiming the seller of the 3101 Bayshore Drive property wrongfully cut the firm out of the deal in favor of a CBRE broker. Related Real Estate Recovery Fund acquired the condo-hotel units and hotel in a transaction recorded by Broward County on Thursday. The seller, Capri Hotels, and two other companies are named as defendants in Investco’s suit.

In the complaint, Investco claims it found a buyer – Sheafor Investment Group – through a cooperating broker, according to Law360. Capri allegedly agreed to a 1.75 percent commission for Investco. That deal fell through, and Investco claims it brought in the Related entity through the same cooperating broker.

After the new buyer emerged, Capri did not hold up its end of the commission agreement, Investco’s attorney Jennifer Kerr claims.

“The sellers have gone around our client in an effort to avoid paying commissions,” Kerr said.

A CBRE spokesperson told the website the firm believes the lawsuit has no merit. [Law360]Eric Kalis