Broker claims seller didn’t pay $260,000 Oakwood Gardens commission
Mordel Real Estate Advisors claims that the seller of an affordable housing midrise in Mount Vernon has refused to pay a $260,000 brokerage fee.
Mordel, of Great Neck, Nassau County, sued Mt. V LLC, April 1 in Westchester Supreme Court claiming that it had procured “a ready, willing and able buyer” for $13 million.
The transaction was for Oakwood Gardens Apartments at 630 E. Lincoln Ave., near the Pelham border. The 89-year-old, 100-unit Tudor-style structure provides subsidized housing through the federal Section 8 program.
Mordel says it contacted Mt. V in 2017 about a potential buyer, K&R Preservation of  Manhattan.
Mt. V is a special purpose entity managed by real estate attorney Aaron Seligson of Seligson, Rothman & Rothman in Manhattan.
K&R Preservation”™s founders, Francine Kellman and Brian Raddock, specialize in buying and renovating affordable housing properties that are deteriorating or close to financial default.
Mordel claims it negotiated a deal in which K&R Preservation would pay Mt. V $13 million, for a 2.5 percent commission. The commission was later reduced to 2 percent, or $260,000.
Mordel also claims that it saved Mt. V $800,000 on its mortgage “and otherwise acted as a catalyst for the sale of the property to K&R.”
The contract of sale acknowledged Mordel”™s brokerage services, the complaint states, and Mt. V”™s obligation to pay the brokerage commission.
The deal closed on Feb. 26 but Mt. V, according to the complaint, has refused to pay the commission.
The lawsuit charges Mt. V with breach of contract and unjust enrichment.
Seligson was not available to respond to the allegations, and associate Stewart Rothman did not immediately respond to a voicemail message.
K&R has budgeted $20.6 million for the acquisition, according to a Mount Vernon Industrial Development Agency document, including renovations on the 2.25-acre property.
Mordel is represented by attorney Martin Eisenberg of White Plains.