Dezer Evicting Some Tenants From Mall It Wants to Redevelop
A Dezer Development attorney says the lawsuits have nothing to do with the company's future redevelopment plans.
January 23, 2018 at 03:24 PM
5 minute read
South Florida developer Dezer Development wants some businesses out of its North Miami Beach mall before redevelopment, attorneys for tenants say.
The Sunny Isles Beach company reportedly wants to build there but exactly what, where on the property and when remains unclear. It has submitted no plans to the city, according to Richard Lorber, community development director.
A 2015 zoning change done with input from Dezer sheds light on what could rise there — up to 2,000 residential units, 2.5 million square feet of commercial space and buildings up to 40 stories tall on the east side of the site and scaling down to up to three stories on the west, Lorber said.
The Intracoastal Mall sits on 26.2 acres north of the Northeast 163rd Street causeway connecting North Miami Beach and Sunny Isles Beach. Dezer Intracoastal Mall LLC, an affiliate of Dezer Development, bought the property in December 2013 for $63.5 million, records show.
Since then, it has sought to evict at least six tenants for alleged nonpayment, according to Miami-Dade Circuit Court complaints. Attorneys for some of the tenants claim Dezer wants them out so it can move ahead with its project.
The Downs Law Group attorney Jeremy Friedman, who represents former tenant North Miami Beach PB LLC, said redevelopment is one of the reasons why Dezer didn't renew this tenant's lease.
The Planet Beach spa has sued Dezer for failing to renew its lease as allowed in the lease signed with the previous landlord, court records show. Instead, Dezer wanted the tenant to sign a modified lease that would have allowed Dezer to force the tenant out with notice, according to the December 2016 complaint.
Gary Phillips, managing partner for Phillips, Cantor, Shalek & Pfister in Hollywood and the attorney for tenant Sea Grill restaurant, said Dezer's lawsuit against his client was ”so they could build their condominium without having to either relocate or work with the tenant or buy out the tenant's lease.”
Dezer sued to evict the Sea Grill in March 2016, claiming the restaurant owed $128,194. Dezer upped that amount to $600,000 over time, Phillips said.
Dezer Development general counsel David Reimer denied there's a connection between landlord-tenant issues and a future project.
The lawsuits “have nothing to do with the redevelopment of the property,” he said. “They are simply landlord-tenant cases. There are plenty of tenants we have no problem with. … Allegations that this is related to the redevelopment of the mall are not true.”
Most recently, Dezer sued to evict OBK Center Corp. saying the tenant failed to pay more than $668,000, according to the Jan. 10 complaint.
The issue in both cases stems from Dezer recalculating how much tenants owe in common area management fees, according to interviews with OBK Center Corp. and Phillips. Both tenants signed leases with previous landlords, and Dezer Intracoastal took over the leases after buying the mall.
Dezer went back to the first year and “said, 'Look, here's what you owe, and then we are going to increase it after that.' We said, 'No, you can't go back and recalculate. Read the lease.' There's an addendum to the lease and says notwithstanding the actuals, this is the only amount we need to pay,” Phillips said.
Judge Jorge Cueto sided with Sea Grill, concluding the restaurant overpaid $2,110, according to a Dec. 26 final judgment.
“Landlord utilized an improperly calculated increase in the operating expenses to assert a claim for rent owed,” the judge wrote.
Alex Rosenthal of the Rosenthal Law Group in Miami and Dezer's attorney in some of the lawsuits, has appealed, according to court records.
OBK Center Corp., which operated the Russian restaurant Bahor, closed in part because Dezer recalculated the common area management fees and the restaurant couldn't pay, said Irina Eliutina, who owned the eatery with her husband, Oleg Elyutin. Both are named defendants.
The recalculated common area management fees “was huge money for us, and we couldn't pay it,” she said.
In some of the cases, the court has sided with Dezer. In September 2014, the company sued tenant Rudy's Barbershop and Spa LLC, saying it didn't pay monthly rent and assessments. The court ordered the tenant out.
Dezer Intracoastal sued to evict Prestige Beauty Academy International Inc. alleging it owed $126,370. The two sides settled, and the case was dismissed, court records show.
The developer, whose projects include the glitzy car elevator-equipped Porsche Design Tower, in 2014 disclosed plans to the Daily Business Review to develop the east side of the mall property with 600 residential units. The subsequent city rezoning allows for a much bigger project.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllPlaintiffs Attorneys Awarded $113K on $1 Judgment in Noise Ordinance Dispute
4 minute readUS Judge Cannon Blocks DOJ From Releasing Final Report in Trump Documents Probe
3 minute readRead the Document: DOJ Releases Ex-Special Counsel's Report Explaining Trump Prosecutions
3 minute readTrending Stories
- 1We the People?
- 2New York-Based Skadden Team Joins White & Case Group in Mexico City for Citigroup Demerger
- 3No Two Wildfires Alike: Lawyers Take Different Legal Strategies in California
- 4Poop-Themed Dog Toy OK as Parody, but Still Tarnished Jack Daniel’s Brand, Court Says
- 5Meet the New President of NY's Association of Trial Court Jurists
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250