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
Movers & Shakers: Daniel Minkowitz joins Corcoran & more
Movers & Shakers: Daniel Minkowitz joins Corcoran & more
Movers & Shakers: Daniel Minkowitz joins Corcoran & more
The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
Miami Beach seeks buyers for city-owned development sites
Miami Beach seeks buyers for city-owned development sites
Developer David Edelstein and Robert Levine of RAL Development with the project (Getty, RAL)
David Edelstein, partner close on missing piece of Wynwood assemblage for office towers
David Edelstein, partner close on missing piece of Wynwood assemblage for office towers
David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Related Companies Chairman Stephen Ross with One Flagler (Related, Getty)
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
Moishe Mana and the downtown parking lot he purchased (Google Maps, Getty)
Moishe Mana expands downtown Miami assemblage with $12M purchase
Moishe Mana expands downtown Miami assemblage with $12M purchase
arrow_forward_ios

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

Loading...