One partner in Midtown Delray Beach sues another over efforts to sell the development

Miami /
Apr.April 28, 2019 04:00 PM

Midtown Delray Beach rendering

Litigation may delay construction of a $100 million mixed-use development in Delray Beach. One of the two partners in the Midtown Delray Beach development has sued the other, and a potential buyer of the project also has sued to complete the purchase.

The partners in the Delray project are Hudson Holdings, led by principal Steven Michael, and Marshall Florida Investments, led by Rick Marshall. They assembled the seven-acre development site along West Atlantic Avenue for $26 million.

In January, the partners negotiated a deal to sell Midtown Delray Beach to an affiliate of Boca Raton-based Pebb Enterprises for $40 million. But Pebb failed to close on a purchase of the project by the contractual deadline on February 28.

On March 21, two affiliates of Hudson Holdings filed a lawsuit in Palm Beach Circuit Court against Marshall Florida Investments and two entities linked to Pebb Enterprises.

Hudson’s lawsuit alleged that the defendants started working together to extend Pebb’s purchase deadline in “a conspiracy to enrich Marshall and Pebb” by cutting Hudson out of a $20 million interest in the Midtown Delray Beach development.

The lawsuit accuses Marshall of breach of contract, Pebb of tortuous interference with a contract, and both Marshall and Pebb of civil conspiracy.

On April 16, Pebb affiliate Delray Midtown Properties filed its own lawsuit, claiming it deserves to complete its planned purchase of Midtown Delray Beach.

Pebb’s lawsuit claims the company was unable to buy the project by the Feb. 28 deadline because the sellers undermined a due-diligence review of the deal by failing to provide certain documents.

The requested documents include a signed letter of intent by World of Beer and a proposal to relocate historic homes on the development site from Wolfe Movers.

Michael, the Hudson principal, told the Palm Beach Post he expects a quick resolution of the lawsuits but did not elaborate. [Palm Beach Post]Mike Seemuth


Related Articles

arrow_forward_ios
Pebb Enterprises' Ian Weiner (right) and Banyan Development's  Jason Sher with Research Park at Florida Atlantic University (Pebb, Avison Young, LinkedIn, iStock)
Pebb, Banyan pay $37.5M for Research Park at FAU in Boca Raton
Pebb, Banyan pay $37.5M for Research Park at FAU in Boca Raton
Real Estate Investment Services’ Kyle Matthews with  201 East Las Olas Boulevard (Real Estate Investment Services, Loopnet)
Lease roundup: Matthews Real Estate opens first Florida office in Fort Lauderdale
Lease roundup: Matthews Real Estate opens first Florida office in Fort Lauderdale
Hassan Whiteside and 528 Lakeview Court in Miami Beach (Getty, Joe Azar/Compass)
NBA’s Hassan Whiteside lists Miami home for $23M, triple what he paid for it
NBA’s Hassan Whiteside lists Miami home for $23M, triple what he paid for it
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
(ONE Sotheby's Realty)
Former mayor George “Bud” Scholl’s waterfront home hits market for $13.9M
Former mayor George “Bud” Scholl’s waterfront home hits market for $13.9M
Jackie Soffer with 2750 Northeast 199th Street (Google Maps, Turnberry.com)
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Home prices notched record-shattering growth in 2021, but slowdown is likely
Home prices notched record-shattering growth in 2021, but slowdown is likely
Home prices notched record-shattering growth in 2021, but slowdown is likely
6315 11th Ave Gulfport (iStock, Heckler Realty Group, Illustration by Shea Monahan for the Real Deal)
Tampa-area home billed as first in US to be sold as an NFT
Tampa-area home billed as first in US to be sold as an NFT
arrow_forward_ios

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

Loading...