A company tied to Kennedy Homes sold its 50-home community in Palm Beach Gardens for $6.5 million as the development group is involved in a lawsuit that alleges the company executives mismanaged funds.
The Boca Raton-based homebuilder sold the 12.5-acre site at 12825 Trevi Isle Drive to 5 Star Developers LLC, which is tied to Jordan Fischer of Plantation, Florida.
Kennedy Homes planned to build 50 townhomes with four models on the land, but only a few of the homes have been completed so far, according to county records. The homes were marketed for sale in the low $400,000s.
Kennedy Homes and its executives have been entangled in lawsuits after the company’s founder Robert Kennedy had a stroke in September 2018 and his sons took over control of the company.
Last year, the company’s interim president Brian Kennedy alleged the company CEO Stephen Gravett, CFO Michael Ehrlich, COO Kevin Swill misused funds from Kennedy Homes to develop other projects. The lack of funds left no funds to pay subcontractors, the lawsuit alleges.
In March, a company tied to Swill filed a lawsuit in Palm Beach County Circuit Court alleging that it was actually Kennedy’s sons who mismanaged the funds. That complaint alleged that Robert Kennedy Jr., David Kennedy, Brian Kennedy and James Kennedy, along with Ehrlich, illegally transferred money between companies and failed to pay back Swill’s loan of over $880,000.
The complaint also alleges the company was on the verge of bankruptcy. Ehrlich disputes the allegations.