Lawsuit: Ritz Carlton Developers Blocking $100 Million Bid For 48-Unit Tropicana Condo In Sunny Isles
Developers Edgardo Defortuna and Manuel Grosskopf are being sued by owners in the Tropicana condo building in Sunny Isles for allegedly blocking a sale of the property, according to The Real Deal.
The suit claims that Defortuna and Grosskopf have used straw buyers to gain control of five of the 48 units in the building in order to block the sale. Under Florida law, 10 percent of owners can vote to block a dissolution and sale of the association.
Defortuna and Grosskopf are planning to build the 52-story Ritz-Carlton Residences next door. The lawsuit claims that the developers are trying to preserve the views for their building.
The owners of five units had earlier filed suit against the association for amending the declaration of condominium which required a 100 percent threshold to dissolve the association. The counter suit claims that those five owners are employees and straw buyers of Grosskopf and Defortuna.
Developers have offered to buy out the Tropicana for up to $100 million, and the suit seeks $120 million in damages. Grosskopf’s Chateau Group offered $50 million but was rejected.