Developer Sued Over Alleged Default Tied to Cape Cod Inn

A Massachusetts developer with ambitious multifamily plans around Greater Boston is facing allegations that it stiffed the former owners of a Cape Cod boutique hotel, then sold the property to avoid repaying millions owed under the deal.

The former owners of the Queen Anne Inn in Chatham sued Boston-based Copper Mill and its principal, Andrew Flynn, in Suffolk Superior Court last week, alleging the developer defaulted on payments tied to its $10 million acquisition of the property before transferring the hotel and its sale proceeds beyond the reach of creditors, Banker & Tradesman reported.

The lawsuit centers on Copper Mill’s February 2025 purchase of the historic inn from longtime owner Guenther Weinkopf, who had owned the property since 1979. Copper Mill financed the acquisition with a $6 million loan from Boston-based Acorn Street Capital, according to the complaint, and assigned the purchase agreement to an affiliated entity, Queen Anne Chatham LLC, which shares Copper Mill’s Long Wharf address.

The affiliate agreed to a $7.75 million promissory note, plus interest, as part of the acquisition. The complaint alleges it stopped making monthly payments in mid-2025, missed additional payments beginning that November and failed to make a required $2.12 million principal installment in April. After notifying the LLC of its default in March, the plaintiffs claim they received no response from Flynn.

Instead, the lawsuit alleges Flynn sold the property for $8.2 million in November to Queen Anne Realty Trust, an entity tied to Hajjar Management. The sale proceeds satisfied the mortgage but left the former owners unpaid, according to the complaint, including money that had been set aside in a $387,500 interest reserve at closing.

The plaintiffs allege Flynn then transferred the remaining proceeds with the intent to “hinder, delay, or defraud” creditors. They are seeking damages on claims including breach of contract, unjust enrichment, fraudulent conveyance, violation of the state’s consumer protection law and breach of the implied covenant of good faith and fair dealing.

Flynn has not responded publicly to the allegations. Hajjar Management previously told the Cape Cod Times it planned to restore the Queen Anne Inn “to what it once was.”

The litigation arrives as Copper Mill continues pursuing several high-profile development

projects across Massachusetts. The firm has won approvals for large residential developments in Dorchester and Brockton and is seeking permission to build a 26-story, 502-unit apartment tower in Somerville’s Davis Square.

— Holden Walter-Warner