A Florida real estate developer that was unable to secure land use approvals for a New Rochelle waterfront project is suing the Mamaroneck company that owns the land for $1 million.
MCRT Investments, an affiliate of Mill Creek Residential, of Boca Raton, Florida, accused Broad Avenue Realty Company of breach of contract and unjust enrichment, in a complaint filed on March 3 in Westchester Supreme Court. It is asking the court to make Broad Avenue Realty return a $1 million deposit.
But Jeff Meighan of Broad Avenue Realty says MCRT has to turn over the results of its work for the past five years.
“We have a new buyer,” he said, “and they’d like to see the work product.”
The property is at 366 and 368 Pelham Road, along New Rochelle Harbor. It has been in Meighan’s family since the mid-1950s, when his father and uncle developed what eventually became an A&P grocery store, bank branch and pizza parlor.
In 2020, MCRT agreed to buy the property for $18.1 million, according to the lawsuit. The price was reduced to $14.7 million in 2023, and MCRT deposited $1 million.
MCRT needed new zoning and other governmental land use approvals to build a complex with about 325 apartments.
It spent more than $1 million on fees for architects, engineers, and attorneys. It created conceptual plans and drawings and traffic studies. It attended public meetings and met with city building department staff and elected officials and community organizations.
MCRT and Broad Avenue Realty amended their deal seven times, to keep the project alive.
In November 2022, the complaint states, the city asked MCRT to withdraw its zoning petition, address outstanding issues, and build consensus.
“Without political and community support,” the complaint states, “there was no chance to secure rezoning.”
Last year, MCRT asked Broad Avenue Realty to amend their deal again, to gain more time to secure governmental approvals. Broad Avenue Realty refused, according to the complaint, and their deal expired on Oct. 31.
Broad Avenue Realty had to refund the deposit when the deal ended, MCRT says, but has refused to do so.
Meighan said MCRT was not aggressive enough in seeking governmental approvals. Part of the problem was the city’s desire for new zoning in the Pelham Road corridor, not just this property, “and then of course there was a slight change of course in New Rochelle Government.”
But the biggest problem, he said, was the impact of the Covid-19 pandemic bringing everything to a standstill.
He said the dispute will become a nonissue when MCRT turns over its work product.
Meanwhile, Meighan said he has four bids for the property. The site affords “glorious views of Long Island Sound,” he said. “Hopefully, somebody good will come in and build something nice.”
