Brickell Flatiron commercial space buyer seeks court-ordered discount on $22.5M sales price

An Avi Dishi partnership alleges ramp’s location cuts through commercial space and turned off prospective tenants

Miami /
Aug.August 29, 2019 05:30 PM
Brickell Flatiron rendering

Brickell Flatiron rendering

Three years after agreeing to pay $22.5 million for Brickell Flatiron’s retail and restaurant space, a partnership between Avi Dishi and Haim Yehezkel wants a Miami-Dade Court to reduce the purchase price over allegations of an undisclosed revision of the construction plans.

In a recent-filed lawsuit in Miami-Dade Circuit Court, Manhattan-based Dishi and Sons, and Brickell Flatiron Retail, a firm owned by Dishi and Yehezkel, accuse CMC Group affiliate Downtown Development Holdings of making significant portions of the 24,800-square-foot ground-floor commercial space unusable by placing a garage ramp through it.

CMC Group, headed by Ugo Colombo, is expected to complete the 64-story Brickell Flatiron tower with 594 condos at 1001 South Miami Avenue next month. According to the complaint, the Dishi entities have already paid deposits totalling $11.25 million and are tentatively scheduled to close the deal in mid-September.

“This appears to be a heavy-handed attempt by the buyer to re-trade a long-standing, binding contract on the eve of closing,” said Jesse Dean-Kluger, a lawyer representing Downtown Development Holdings.

Attorneys for Brickell Flatiron Retail and Dishi could not immediately be reached for comment.

The Dishi partnership claims that during negotiations in early 2016, CMC Group provided architectural plans and other renderings for Brickell Flatiron’s ground and mezzanine levels showing the commercial units contained usable, unobstructed spaces on the ground floor with appropriate ceiling heights.

The drawings for the second floor of the commercial units “were particularly attractive to the buyer, as the seller represented that it would allow an opportunity to feature high ceilings throughout…an appealing characteristic to commercial tenants, especially high-end restaurants,” the lawsuit states.

After signing the purchase contract in February 2016, Brickell Flatiron Retail began working with numerous potential tenants interested in leasing space. They entered into letters of intent, including with an unnamed high-end restaurant that wanted to do an open-concept fine dining establishment accentuated by the ceilings and ample space, according to the complaint.

Those plans unraveled this summer. The Dishi partnership claims that it became clear CMC Group had substantially deviated from the floor plans by building a “several-ton cement parking garage ramp” in the middle of the commercial space. As a result, the ceiling space was reduced and the prospective restaurant tenant could no longer use the second floor for its kitchen and storage, the lawsuit states.

Dishi and Brickell Flatiron Retail allege the changes to the ramp design were never disclosed and that they found out only when the ramp was being built.

The plaintiffs also claim the restaurant tenant is demanding a substantial rent abatement and could back out of its proposed lease agreement.


Related Articles

arrow_forward_ios
Regalia condominium tower at 19575 Collins Avenue in Sunny Isles Beach (Google Maps)
Regalia association scores $18M settlement in construction defects lawsuit
Regalia association scores $18M settlement in construction defects lawsuit
The JP Morgan Chase North Miami branch and attorney Howard DuBosar  
Hand over the money: JP Morgan Chase loses lawsuit over North Miami branch rent increases
Hand over the money: JP Morgan Chase loses lawsuit over North Miami branch rent increases
Setai Miami Beach and owners Joe, Ralph and Avi Nakash. (Setai)
Setai Miami Beach bans unwelcome hotel guest from using amenities: lawsuit
Setai Miami Beach bans unwelcome hotel guest from using amenities: lawsuit
Abraham Edgardo Ortega is one of nine people charged in the laundering scheme. (Getty, Department of Justice)
Former Venezuelan oil exec sentenced in $1B money laundering scheme
Former Venezuelan oil exec sentenced in $1B money laundering scheme
East End Capital’s Jonathon Yormak, BentallGreenOak’s Sonny Kalsi and 100 Biscayne Boulevard. (East End Capital, BentallGreenOak)
East End Capital, Australian investors lose suit over $6M deposit in failed downtown Miami office tower sale
East End Capital, Australian investors lose suit over $6M deposit in failed downtown Miami office tower sale
Guess CEO Carlos Alberini (Getty, Google Maps)
Guess it didn’t work out: Guess loses suit seeking rent break at Lincoln Road store in Miami Beach
Guess it didn’t work out: Guess loses suit seeking rent break at Lincoln Road store in Miami Beach
Cain International's Jonathan Goldstein, OKO Group's Vlad Doronin and the Brickell condo renderings. (Getty, OKO Group & Cain International)
Billionaire Vlad Doronin, partner score $128M construction loan for Brickell condo tower
Billionaire Vlad Doronin, partner score $128M construction loan for Brickell condo tower
The Coconut Grove Playhouse and Miami Mayor Francis Suarez (Phillip Pessar/Flickr, Getty)
Miami-Dade County wins lawsuit over Coconut Grove Playhouse partial demolition
Miami-Dade County wins lawsuit over Coconut Grove Playhouse partial demolition
arrow_forward_ios

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

Loading...