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RFR, Tricap File Dueling Lawsuits For Control Of W South Beach

New York developers Aby Rosen and David Edelstein are in a high-noon standoff over a proposed buyout deal for the W South Beach — with a maturing loan raising the stakes.

Entities controlled by Edelstein, principal of Tricap (formerly Tristar Capital), and Rosen, co-founder and principal of RFR Realty, recently filed dueling lawsuits against each other in Miami-Dade Circuit Court and New York Supreme Court.

The W South Beach co-owners are in a hostile stalemate over Tricap’s $200 million proposal to buy RFR’s interest in the luxury hotel at 2201 Collins Avenue in Miami Beach.

A Tricap spokesperson said Edelstein’s firm sought legal action in Miami-Dade to “enforce a contractually agreed-to process for buying or selling the hotel to each other,” and that RFR followed up with its own complaint in New York, “apparently seeking to avoid litigating the matter in Florida.”

Last week, Tricap’s entity sued RFR’s entity in Miami-Dade, seeking a court order to enforce an agreement the partners allegedly reached in October. The suit also seeks to require RFR to either agree to extend a $157.4 million Citibank mortgage due on Jan. 25, or come up with its share of the funds to pay it off.

RFR has “repeatedly refused” to cooperate with Tricap on the loan issue as a tactic to obtain a more favorable buyout at “an inflated price,” the Miami-Dade lawsuit states. If Tricap refused, RFR threatened to “burn the house down,” the complaint also states.

On Monday, RFR’s entity sued Tricap’s entity in New York, accusing its partner of using the buyout negotiations as a stall tactic to extend the loan’s maturity date, which was originally set to expire in August of last year.

RFR claims it was “ostensibly negotiating in good faith,” while Tricap was “merely stringing [RFR] along in an effort to extract additional concessions,” the New York lawsuit states. Tricap walked away from Tricap’s $200 million offer last month, RFR also alleges.

In 2009, the New York firms co-developed the 395-room W hotel.


Source:  The Real Deal

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David Edelstein, Related And Partners Plan Resi Project On Former RedSky Property In Wynwood

David Edelstein’s TriStar Capital, Related Group, Alex Karakhanian’s Lndmrk Development and Tricera Capital paid $26.5 million for a development site where they plan to build a residential project.

Chinese firm Seven Valleys, led by real estate moguls Zhang Xin and Pan Shiyi, sold the nearly 1.3-acre property anchored at 2700 Northwest Second Avenue in Miami’s Wynwood neighborhood. Seven Valleys had been the lender for the property, which previously belonged to RedSky Capital and JZ Capital Partners, whose planned developments never came to fruition.

TriStar and its partners plan to build “well over” 300 residential units on the site, Edelstein told The Real Deal. They could break ground in about 10 months, he said. The venture secured a roughly $20 million loan from Comerica Bank.

Edelstein said the market for new development in Wynwood is “on fire” and that there is very little undeveloped land left.

The development site sold at a loss compared to its $31 million sale to RedSky and JZ in 2016. The previous owner, Wynwood pioneer Goldman Properties, had planned a mixed-use development with 72 residences, 68 hotel rooms, about 11,000 square feet of ground floor retail and 47,000 square feet of offices.

In Wynwood, Related, Karakhanian and Tricera are partnering to develop another project, called the Dorsey Wynwood, at 2801 Northwest Third Avenue. They broke ground earlier this year. The project will have more than 300 rental apartments, commercial space, office space and amenities.


Source:  The Real Deal

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TriStar Affiliate Buys Wynwood Property To Start Major Development

An affiliate of New York-based TriStar Capital and New York-based RAL Development Services paid $13 million for a building in Miami’s Wynwood Arts District to set up a major development.

JCR Investments of Boca Raton, managed by Ok Bun Yu in Boca Raton, sold the 31,250-square-foot site at 2701 N.W. Fifth Ave.

The buyer was Brownstar LLC, managed in partnership with RAL and TriStar, a major commercial real estate developer led by and David Edelstein. Dallas-based Comerica Bank provided a $12.1 million mortgage to the buyer.

The property has a 20,239-square-foot building that was constructed in 1963 and recently housed clothing and jewelry retailers.


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