Botched Inwood Property Deal Leads To Lawsuits: Report

INWOOD, NY — Two development firms that were partnering to buy an Inwood property, until one backed out and pursued the deal on its own, are taking each other to court over the botched deal, according to reports.

Philadelphia-based developers The Arden Group and Brooklyn-based Hello Living filed lawsuits this week based on the claims that Hello Living is entitled to damages for a failed 2018 deal to buy 4650 Broadway, located on the corner of Sherman Avenue, the Real Deal first reported.

Arden's lawsuit claims that Hello Living has no claim to damages over the failed deal because Arden severed the partnership after a shared lender backed out due to concerns about lawsuits that Hello Living was engaged in at the time of the deal, according to the report. Hello Living's suit claims that Arden owes at least $38 million because Hello Living was responsible for setting up the Brooklyn deal.

The Arden Group recently closed on the property on its own for $54 million. Arden plans to redevelop the site into a mixed-use building with both market rate and below-market housing, a community space and parking. The site has long been occupied by a two-story parking garage.

Sellers FBE Limited, which bought the site for just $26 million last year, huge profit on the property.

A developer-led proposal to rezone the property in 2016 failed when former owners Acadia Sherman Ave LLC could not come to an agreement with local City Councilmember Ydanis Rodriguez over affordable housing requirements. The development firm wanted to build a 17-story mixed-use building containing 413 apartment units, according to an application filed with the city.

In 2018, the City Council has since rezoned much of Inwood to increase residential and commercial development in sections of the neighborhood. The rezoning does not affect 4650 Broadway or other Inwood sites south of Dyckman Street.

Read the full Real Deal article here.