Newmark Suing Margaritaville, Claiming It's Owed Millions For Times Square Development
Newmark Knight Frank is going after the Jimmy Buffett-branded Margaritaville hotel and restaurant chain because the brokerage claims it wasn’t paid for the work that led to its upcoming flagship Times Square location.
Newmark says it had reached a deal seven years ago to exclusively represent the company in its search for a New York City location, The Real Deal reports, citing court documents.
But Newmark claims it wasn’t paid for the deal that will see Margaritaville opening a 234-room, 29-story hotel and multiple bars at 560 Seventh Ave. in Times Square. Newmark alleges it is owed at least $3.5M, and has requested a jury trial to settle the dispute.
Newmark argues that it had an exclusive agreement with Margaritaville that the hotel chain was to send all questions or requests about locations over to Newmark regarding its New York expansion. In fact, it says it showed Margaritaville some 43 potential spots for its new location.
Newmark said it reached the agreement with Margaritaville in 2012 for a year, which was then extended to June 30, 2017, per TRD. The brokerage claims that Margaritaville worked alone with IMCMV Holdings for the Times Square development starting in May 2017, while the agreement was still in place.
The following month, Newmark claims that Margaritaville Chief Development Officer Jim Wiseman told the brokerage that once the Times Square deal was “definitive,” he would call to “try to work something out." That never happened, Newmark said.
The resort, which is expected to cost $300M, will feature Margaritaville-themed bars and restaurants, including a rooftop Landshark Bar & Grill, a pool and ground-floor retail space. Sharif El-Gamal's Soho Properties, in partnership with Chip and Andrew Weiss and MHP Real Estate Services, is developing the project.