The Real Deal Miami

Engel & Völkers’ Irving Padron allegedly skipped out on $285K payment: lawsuit

Investor Alejandro Abascal accuses Padron of going on a “buying binge” while still owing him money
By Francisco Alvarado | December 12, 2018 11:30AM

From left: Irving Padron and Alejandro Abascal. (Credit: iStock)

Irving Padron, the license partner, president and managing broker of Engel & Völkers Miami, is being accused by a former business partner of welching on a $285,000 payment connected to his purchase of another brokerage, according to a recent lawsuit filed in Miami-Dade Circuit Court. Alejandro Abascal sued Padron and his company Seamless Transactions II for breach of contract and unjust enrichment regarding nonpayment of the six-figure sum, which was the final installment in a deal to buy Abascal’s stake in Submarket Realty LLC.

In an emailed statement, Padron said he doesn’t comment on pending litigation and noted that Engel & Völkers is not named as a defendant in the lawsuit. His attorney Brian Goodkind also declined comment. Abascal, a principal of Miami Avenue Realty, claimed Padron has been on a buying binge, acquiring other realty companies while leaving him hanging.

According to its website, Miami Avenue Realty’s off-market commercial listings include a vacant lot on Brickell Avenue, the Sorrento Villas hotel in Miami Beach and a Miami Lakes office building resembling the White House. The firm also markets Miami Beach mansions for sale. Abascal was also a founding partner of Engel & Völkers’ Miami office.

“I got tired of asking him to pay so I had to file this lawsuit,” Abascal said. “Submarket Realty is now under his control, but he hasn’t met his obligations yet.” Abascal also claimed that Padron has not paid an additional $215,000 to other ex-owners of Submarket Realty.

Earlier this week, Engel & Völkers Miami bought Select Realty Group, a boutique brokerage in Coconut Grove whose owner Magnus Jennemyr is joining Padron’s team. In July, Engel & Völkers Miami also secured rights to the Sunny Isles market that gave the franchisee control of Miami-Dade County.

Abascal’s lawsuit includes copies of agreements between Padron’s Seamless Transactions II and Abascal’s company One Limited Properties, which owned a 49 percent stake in Submarket Realty. The documents show Seamless agreed to buy One Limited’s interest for $1.7 million.

Seamless paid $1.1 million with the balance of $527,000 due on May 1, 2017. That amount includes Abascal’s $285,000. The complaint also states that One Limited gets a 15.2 percent stake in Submarket Realty and that Padron is personally on the hook if the balance is not paid.