Miami architect Kobi Karp has filed a lawsuit against New York developers Joseph Chetrit and Jonathan Chetrit, as well as the entity CG Miami River, over an alleged unpaid debt of $660,800 related to design work for the Miami River District project. The complaint was submitted in Miami-Dade Circuit Court on January 13.
According to the lawsuit, CG Miami River did not make a payment last month that was required by a settlement agreement. The agreement had been reached after Karp withdrew a lien on the property in August so the Chetrits could complete refinancing. The settlement called for nearly $1 million in overdue architecture fees.
The development site covers 6.2 acres near Brickell and is part of a $1 billion project now branded as Flow on the Miami River. In August, Adam Neumann’s real estate firm Flow, along with Canada Global and Yakir Gabay’s Yellowstone Trust, acquired a majority stake in the project from Chetrit Group and provided $525 million in recapitalization.
Records show that CG Miami River modified its construction loan with Madison Realty Capital, increasing it by $9.5 million to a total of $310 million.
The lawsuit states that CG Miami River paid $300,000 when the refinancing closed but failed to pay the remaining balance by December 9. Joseph and Jonathan Chetrit are listed as guarantors in the complaint.
Neither Karp nor his attorney Alex Barthet or representatives for the Chetrits responded to requests for comment.
This legal action adds another layer to ongoing issues at the site, which Chetrit has been working to redevelop for more than ten years. Plans call for up to 1,900 residential units, significant retail and office space, a marina with 17 slips, and 770 parking spaces across about four million square feet. The first phase—a 54-story tower with 632 apartments at 275 Southwest Sixth Street—is close to completion. At least two additional high-rise residential buildings are also planned.
Flow is managing both the completed tower and future development phases as managing member of the majority ownership group; Joseph and Jonathan Chetrit retain a minority interest.
