Commercial condo owners in South Beach sue over alleged “fire sale” attempt

Russell and Marissa Galbut among the defendants

Miami /
Nov.November 15, 2017 02:00 PM

1501 Collins Avenue and Russell Galbut (Credit: Google Maps, Tequilas Chicas)

The majority owners of a commercial condo building in South Beach are attempting to force a fire sale of the building, a recently filed lawsuit alleges. They’re seeking declaratory and injunctive relief and want the judge to stop the sale of the building.

Tequila Chicas, a Mexican-style restaurant and bar, and the owners of some units at 1501 Collins Avenue are suing the building’s condo association and other owners, according to the Daily Business Review. They claim that the association and majority owners of the commercial building – including Russell and Marissa Galbut – are pushing for an online foreclosure sale to buy the other units at a heavily discounted price from market value.

The building’s market value is more than $100 million, according to the lawsuit.

“Then they can take the property and they can redevelop it themselves and make lots of money,” Patrick E. Gonya Jr., an attorney for the plaintiffs, told the Daily Business Review. He said the association secretly voted to terminate the condo, and that the condo association has let the building fall into disrepair. It’s now mostly empty.

In January, a group of investors lost a years-long battle against companies tied to Galbut, his nephew Keith Menin and the Shelbourne’s condo association. The plaintiffs in that case alleged that Menin, Galbut and the association authorized nearly $30 million in illegal assessments to renovate and repair the hotel condo. [DBR]Katherine Kallergis


Related Articles

arrow_forward_ios
A unit in Continuum South Beach was the top sale last week (Luxhunters for ONE Sotheby’s International Realty)
Tech entrepreneur’s purchase of Continuum unit leads Miami-Dade weekly condo sales
Tech entrepreneur’s purchase of Continuum unit leads Miami-Dade weekly condo sales
Alex Rodriguez and Constantine Scurtis at far right (Getty)
A-Rod gets 13 lawsuits dismissed that were filed by ex-brother-in-law over real estate empire
A-Rod gets 13 lawsuits dismissed that were filed by ex-brother-in-law over real estate empire
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Tech entrepreneur pays $8M for Continuum South Beach condo
Tech entrepreneur pays $8M for Continuum South Beach condo
Tech entrepreneur pays $8M for Continuum South Beach condo
Harvey Hernandez and a rendering of his Brickell project
Harvey Hernandez plans three-tower project on riverfront Brickell site
Harvey Hernandez plans three-tower project on riverfront Brickell site
Louis McMillian of Global International Realty and real estate investor Thomas Conway, president of Miami-based Conway CRE (Global International Realty, LinkedIn via Conway)
Jumping the gun? Miami brokerage sues developer for commission on future Bellsouth land deal
Jumping the gun? Miami brokerage sues developer for commission on future Bellsouth land deal
AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
(Facebook via Hotel Astor Miami Beach)
Shuttered Hotel Astor in Miami Beach gets a new owner
Shuttered Hotel Astor in Miami Beach gets a new owner
arrow_forward_ios

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

Loading...