Carvalho CRE Sued Over LVMH Office Lease Commission

Relationships are everything in real estate, but in this case, an agent claims ending romantic ties with a brokerage founder left him short of a commission share on a high-profile LVMH lease deal in downtown Miami.

Robert Festinger sued Coral Gables-based Carvalho Commercial Real Estate and its founder and CEO, Luciana Carvalho, whom he alleges he had a romantic relationship with, alleging he wasn’t compensated for his work on the luxury goods brand’s lease renewal, according to the complaint. Festinger filed the complaint in Miami-Dade Circuit Court on Tuesday.

It’s the second time Festinger has sued Carvalho in less than a month. Late last month, he sued her to recoup funds for a four-bedroom Coral Gables house they rented last year, while romantically involved, at a monthly rent of $10,250, alleging he paid a higher share of housing costs, including rent, security deposit and other costs, according to the complaint.

Festinger, who claims he and Carvalho were engaged, said he’s “disappointed” he wasn’t compensated for his work on the LVMH lease. He declined to comment on his suit over the Coral Gables home.

“I played a significant and documented role in advancing this transaction, supporting Luciana and Carvalho Commercial Real Estate throughout the process,” he said.

His attorney in the LVMH case, Cody German, said Festinger performed “substantial, meaningful work” on the deal.

Carvalho and her brokerage didn’t return requests for comment.

Festinger and Carvalho each have long careers in South Florida real estate, though both have seemingly played more of a background role, with neither emerging as a household name in the industry or major market player.

For a large portion of his career, Festinger has focused on hotels, including as vice president and general manager at the Mondrian South Beach Hotel and then holding various roles, including VP of hotel operations, at Miami-based Crescent Heights, led by Russell Galbut, according to Festinger’s LinkedIn. More recently, he held executive roles at Raoul Thomas’ Miami-based CGI Merchant Group, a company that came onto the South Florida real estate scene with a big splash pre-Covid but in more recent years floundered underneath the financial weight of its loans, amid elevated interest rates and skyrocketing insurance costs.

Carvalho lists more than 15 years of experience, including representing firms Midea, Phunware, Monte Nido & Affiliates, Banco do Brasil, ApexBrasil, Electrolux, John Hancock, Northwestern Mutual and MassMutual, along with LVMH, according to her website and LinkedIn.

Early last year, Festinger affiliated with Carvalho Commercial Real Estate, including to work on LVMH’s lease renewal in downtown Miami, with Carvalho orally agreeing he would be paid with a “fair and reasonable share” of the commission for the deal, according to his complaint. Carvalho and her team, including Festinger, represented LVMH, the suit says.

The luxury brands company this year renewed its roughly 30,000-square-foot office lease at 100 North Biscayne under a seven-year term at an effective net base rent of $50 a foot, according to the complaint, which bases its estimates on a letter of intent disclosed by the tenant.

Based on this estimate and the 4 percent commission negotiated with the landlord, LVMH’s lease renewal generated a $425,000 gross commission, the suit alleges, though it adds that this is an estimate as Carvalho and her brokerage have declined to disclose the exact amount. Neither the suit nor Festinger specify exactly how much of that he’s owed.

The 30-story tower is owned by New York-based RFR Realty, led by Aby Rosen, which paid $81.1 million for it and the adjacent garage in 2022.

In his complaint, Festinger goes on to say he worked on the deal over several months, including attending meetings, negotiating with the landlord and parking operators, and communicating with the tenant on lease terms and operating expense calculations and disputes.

Despite his affiliation with Carvalho Commercial for nearly a year, the brokerage didn’t provide him with an independent contractor agreement, according to the complaint.

This “lack of formality … was likely motivated by the fact that Festinger and Carvalho were in a romantic relationship and cohabitating at the relevant time periods,” according to the suit. “At no time did Festinger anticipate that the defendants would exclude him from his equitable share of the commission, even if (as has happened) the romantic relationship with Carvalho ended.”

In August, Festinger and Carvalho leased the Coral Gables home on Campo Sano Avenue, with Festinger covering a bigger share of expenses, including the entire $20,500 security deposit, according to his suit over the rental. In total, Carvalho owes over $16,300 for her share of expenses, according to an itemized statement of account attached to the suit.

At one point during their lease term, the rent for the property was decreased, and the pair eventually ended their residency there due to issues with the house, including mold, according to the suit.

Festinger claims he ended his affiliation with Carvalho’s brokerage in January, according to his lawsuit over the LVMH commission.