The Real Deal Miami

Masoud Shojaee sues development partner for $100K in office rent spat

They sold the Doral building for $96M in September
By Francisco Alvarado | December 20, 2017 02:30PM

Masoud Shojaee and 3470 Northwest 82nd Avenue (Credit: Shoma Group, CBRE)

Three months ago, Miami-based developer Masoud Shojaee and New Boston Fund, an investment, development and management firm based in Bean Town, sold an 11-story office building in Doral for $96.1 million — a 253 percent price increase from what he and the company paid for it in 2010.

One might think such a substantial profit would have left the previous owners more than happy about the deal. Apparently not.

Shojaee’s Urbanika Holdings II is accusing New Boston Park Square Limited Partnership and New Boston Shoma Park Square LLC of withholding nearly $100,000 over a wrongful claim of not paying rent, according to a Nov. 17 lawsuit filed in Miami-Dade Circuit Court.

In 2009, Shoma completed the 281,786-square-foot office building with 49,942 square feet of ground-floor retail space and a parking garage at 3470 Northwest 82nd Avenue. A year later, the company sold the property for $27.5 million to New Boston Shoma Park Square, a partnership between Urbanika and New Boston. TA Realty, another Boston-based real estate firm, then purchased the building this September for $96.1 million, a price that came out to $341 per square foot.

According to Urbanika’s suit, New Boston deducted $99,476 for rent payments that were not made by Shoma Alliance Management Corp., a separate company also controlled by Shojaee that leased space in the building. “Shoma Alliance moved out of the subject office space prior to the sale of the property,” the lawsuit states. “Urbanika is not a party to the above described lease between [the Park Square LLC and Shoma Alliance].”

Urbanika is seeking a judgment to make New Boston pony up the $99,476, plus attorney fees and court costs.

A spokeswoman for New Boston said the firm doesn’t comment on pending litigation. Frank Silva, in-house counsel for Shoma Group, Shojaee’s primary real estate development company, did not respond to emails and phone messages seeking comment.

The building is next to CityPlace Doral, which Shoma developed portions of with the Related Group. In August, Related, Shoma and PGIM Real Estate Investors sold the Manor at CityPlace apartments for $135 million to TA Realty.

Harunobu Coryne contributed reporting.