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anon
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| 11/15/2007 12:02 PM |
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They are deposits held in escrow for completed units and are completely separate from the development deal. No decent escrow company would allow them to be part of the original development.
If the project isn't built and delivered as per the contract, the escrow will release the funds.
FYI - how much are the deposits? $5000-$10,000 maybe.
I agree that you should start contacting the escrow company to make sure that they know that you are not closing? |
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utskimmer
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| 11/16/2007 6:13 AM |
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from U-T Nov 16, 2007:
New York luxury hotel developer The Setai Group is suing a California developer for allegedly falsely promoting his upscale downtown San Diego hotel-condominium project under the Setai name.
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Anon
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| 11/16/2007 6:59 AM |
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Hotel builder sues over use of its name in S.D. project
By Penni Crabtree
UNION-TRIBUNE STAFF WRITER
November 16, 2007
New York luxury hotel developer The Setai Group is suing a California developer for allegedly falsely promoting his upscale downtown San Diego hotel-condominium project under the Setai name.
Setai alleges that Orange County developer Steven Rebeil is infringing on the Setai trade-name with its unauthorized use in news releases and Web sites promoting Setai San Diego, a 23-story, 185-room hotel on Fifth Avenue, next to the House of Blues entertainment complex.
The luxury hotel, whose rooms, suites and penthouses are also being sold for condo use at prices ranging from the high $400,000s to $3.8 million, is scheduled to open next year. The property had been marketed as The Diegan before Rebeil began using the Setai name.
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Setai filed the federal suit Wednesday in Miami after apparently attempting in October to rescind a disputed agreement with Rebeil and his firm, 5th Avenue Partners. Setai said it sent a letter “on or about Oct. 18” to Rebeil seeking to void a letter-of-intent because of “material misrepresentations” and violations of terms of the agreement.
Among other things, Rebeil failed to disclose a criminal and litigious past when Setai signed the May letter to negotiate a potential joint venture to develop luxury hotels in the western United States, the lawsuit alleges.
That past includes Rebeil's 2004 tax-related felony conviction and subsequent incarceration, and the denial of a casino gaming license in 1997 after Nevada regulators deemed Rebeil to “lack good character, honesty and integrity.”
Tom Malcolm, an attorney representing 5th Avenue Partners, said his client has the branding rights to the Setai name and has spent “millions upon millions of dollars to implement Setai's branding requirements.” Rebeil controls a majority stake in 5th Avenue.
Setai was aware of Rebeil's complex legal past before signing the letter-of-intent, Malcolm said, calling the New York developer's allegations that it didn't know “pretense.”
“This is a new development that has blindsided my clients,” Malcolm said. “There is an undercurrent here of whether Setai wants to renegotiate. My client, having spent millions upon millions of dollars, has to move forward. To pull the plug at this time would cause irreparable harm.”
Setai says in the lawsuit that it only entered a letter-of-intent with Rebeil and not a final agreement. The lawsuit also alleges that Rebeil's felony conviction disqualifies him from having any ownership interest in a Setai project involving a casino or liquor license in Nevada or California.
“Mr. Rebeil's participation in any of the Setai's projects tends to dilute the character, quality and value of Setai's goodwill and reputation due to Rebeil's obvious legal and moral troubles, which were not properly disclosed,” the lawsuit alleges.
The Setai Group developed the Setai Resort and Residences, a 40-story luxury condominium hotel in Miami, as well as a 30-story luxury condo-hotel in New York City.
Attorneys for Setai did not return telephone calls or e-mailed requests for comment. Setai executives also did not respond to a request for comment.
Malcolm said the Setai San Diego hotel project will continue to move forward despite the lawsuit, with a planned opening in March.
Though the market for hotel properties in San Diego remains strong, questions have been raised about the prospects for the condo portion of the disputed project.
In June, Rebeil indicated that the status of the condo portion of the project was uncertain. At that time, he testified under oath at an Orange County Superior Court hearing that the project will likely convert to traditional hotel use because the “condo market has tanked.”
Rebeil was testifying in a child support dispute with a former girlfriend who is the mother of his 6-year-old son. Rebeil, who lives in a multimillion-dollar home overlooking the ocean in Laguna Beach, maintained that his $8,066 monthly child support is too high because he technically has no income.
Instead, Rebeil said that he lived on cash that circulates through his wife's bank account, various companies and trusts associated with Rebeil or family members.
Orange County officials maintained that Rebeil was not in compliance with a 2004 court order and owed more than $200,000 in back child support.
Last month, an Orange County judge ruled in the case that Rebeil is a “high-earner” and ordered him to pay monthly child support of $8,500.
Yesterday, Malcolm acknowledged that the overall condo market in San Diego has softened, but termed the Setai San Diego project a “success.”
“It may not be a grand slam as it once appeared to be, but it certainly will be a very successful project,” Malcolm said.
Also named in the Setai lawsuit is 5th Avenue Partners' Miami public relations firm, Tara, Ink.
A spokeswoman for the PR agency yesterday said 5th Avenue Partners informed the agency that they have signed agreements with the Setai Group, and that all news releases and other communication released has been factual. |
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Fed Up
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| 11/16/2007 9:58 PM |
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| Aron & Hogue. Go to www.aronhoguelaw.com. I know that they handle numerous of these deposit type issues. They might be able to help you. This developer needs to be taught a lesson. |
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Project Letter
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| 11/18/2007 8:58 AM |
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| I am a Diegan buyer (unfortunately) and I just received a letter from "The Setai San Diego". Apparently the new sales office is located at 265 west market st. They are also stating that the management team will be contacting buyers in January to cover all of the hotel operations. Furthermore, the letter states that the project will be done in March...so, if everything I have read about the lawsuit is true, then the letter I just read is complete BS (Shocker). |
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foolmeonce
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| 11/18/2007 9:31 AM |
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I'm a Diegan buyer as well. I've been trying to get out for a year, since first learning about Steve Rebeil. In my opinion, there have been material changes. But further, Steve Rebeil is a felon and a completely untrustworthy person with whom to enter into a business contract. I have told this to all the sales people and brokers at the Diegan. If I had know about Steve Rebeil before going to contract, I absolutely would not have done it. Anyone who would knowingly sign a contract involving Rebeil would be a fool.
People, we need to get together. I've created a google group just for this purpose. It's private and by invitation only. We need the buyers to join the group so that we can unite and show solidarity. The group is the diegan@googlegroups.com. Get on to google, go to groups, search for diegan, and request to join. Again, it's private so we can find out who we all are.
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foolmetwice
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| 11/18/2007 9:39 AM |
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foolmeonce, were you fooled, or were you blinded by greed and the prospect of making easy money in real estate?
Rebeil's information was public information available to anyone who would do due diligence and search.
Entering into lousy deals is part of the business world. I hope you lose your money, not because I have anything against you, but we need such events to happen so future buyers will think twice before entering into purchase contracts. Capitalism is not viable unless we let its natural warning systems work properly.
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foolmeonce
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| 11/18/2007 9:46 AM |
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So entering into a real estate transaction constitutes being blinded by greed and the prospect of making easy money? How many real estate transactions have you entered into? Setai is suing to get out after learning of Rebeil.
What are the odds that a condo transaction would involve a convicted felon like Rebeil? I'd like to meet you someday. |
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Disappointed investor
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| 11/18/2007 10:04 AM |
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| My husband and I entered into the Diegan project as well as another downtown property (a far better investment because of the integrity of the people behind the project). The Diegan project was misrepresented by the sales people; simple fact. Steve Rebeil's name was never mentioned until months after monies went into escrow. Evidently, the reknown Setai group had the same problem. Capitalism in America does not run amuck with "greedy investors" getting what they deserve. Most investors in this project are simply hard working people planning for the their retirement. Those who sit back and enjoy other's grief, likely either work directly for Rebeil or for the sales/investment team. Anyone else would work towards getting the proper governing boards to protect buyers against dishonest deals such as this. |
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Disappointed investor
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| 11/18/2007 11:10 AM |
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| My husband and I entered into the Diegan project as well as another downtown property (a far better investment because of the integrity of the people behind the project). The Diegan project was misrepresented by the sales people; simple fact. Steve Rebeil's name was never mentioned until months after monies went into escrow. Evidently, the renowned Setai group had the same problem. Capitalism in America does not run amuck with "greedy investors" getting what they deserve. Most investors in this project are simply hard working people planning for the their retirement. Those who sit back and enjoy other's grief, likely either work directly for Rebeil or for the sales/investment team. Anyone else would work towards getting the proper governing boards to protect buyers against dishonest deals such as this. |
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had it
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| 11/18/2007 11:12 AM |
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| Just spoke to saleperson again, they said this is all bs, Setai is still onboard with the project, they have already moved 3 people out from NY to run it, they claim all these statements are coming from some atty and reporter who has a personal issue with developer, Setai is supposed to be contacting buyers shortly to go over rental program ( by January ) I guess only time will tell............... |
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Disappointed investor
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| 11/18/2007 11:17 AM |
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Case Number: 1:2007cv22948
Here's the case number...google it. Who is being dishonest here? |
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Anonymous
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| 11/18/2007 1:10 PM |
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Posted By n/a on 11/18/2007 11:12 AM
Just spoke to saleperson again, they said this is all bs, Setai is still onboard with the project, they have already moved 3 people out from NY to run it, they claim all these statements are coming from some atty and reporter who has a personal issue with developer, Setai is supposed to be contacting buyers shortly to go over rental program ( by January ) I guess only time will tell...............
Thanks for the read on this. Regardless of the financial situation of the buyers or the developer this is a nice hotel in a market that has a ton of growth in the hotel area. Look at how many hotels are now planned downtown. There is clear demand for hotels rooms downtown San Diego. I doubt anyone with a clue will want to walk away from a building that is almost complete.
This doesn't mean that I think the condotel buyers are getting a good or bad deal as I don't have clue what the financial arrangements are, I just see hotel rooms as good business going forward. |
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Anonymous
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| 11/18/2007 1:23 PM |
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| Uh, yeah, hotel rooms are good business in San Diego, which is why Rebeil will back out before the 30 months are up. In character, however, he will hold our money until the very end. What a peach of a guy. |
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Anonymous
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| 11/18/2007 1:38 PM |
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Let's see how this plays out in the next few weeks. Let's see who is being dishonest here. If there is a lawsuit, then the credibility of the Diegan sales team is gone.
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had it
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| 11/18/2007 1:41 PM |
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| Look how they have run the sales of these units so far, I can only imagine how bad the running of the rentals will be.......its a scary thought |
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Anonymous
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| 11/18/2007 1:46 PM |
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There was a case filed on Nov. 14, 2007: Setai Group, LLC v. 5th Avenue Partners, LLC et al
The Diegan sales team can call the article BS, but there has been a case filed. Check it out: http://dockets.justia.com/docket/court-flsdce/case_no-1:2007cv22948/case_id-305610/
Or just google Setai vs 5th Avenue Partners. Can we just get the Diegan sales team to be honest? We're in business with a criminal. He pretended to have a dot com company during the dot com boom and got class action sued by the stockholders for stockholder fraud. They claimed they had an eBay-like business, but they had NOTHING. They ripped of eBay's prospectus. Rebeil has a history of ripping people off. Get out now!!!! |
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anon
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| 11/18/2007 1:50 PM |
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Why is there any doubt about the exisitence of the lawsuit? Call Miami and verify it.
The details of the lawsuit may be in question, but the lawsuit does exist. |
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Anonymous
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| 11/18/2007 1:54 PM |
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| There's doubt because the Diegan sales team is telling people it's not true, that this is a vendetta by the SD Union reporter. How do they live with themselves? |
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anon
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| 11/18/2007 1:59 PM |
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Make a call
Setai Group, LLC v. 5th Avenue Partners, LLC et al
Plaintiff: Setai Group, LLC
Defendant: 5th Avenue Partners, LLC, Steven Rebeil, Thomas Benjamin, Tara Solomon, Inc., Yami Alvarado and Elliot Stares
Case Number: 1:2007cv22948
Filed: November 14, 2007
Court: Florida Southern District Court
Office: Miami Office [ Court Info ]
County: Miami-Dade
Presiding Judge: Judge James Lawrence King
Nature of Suit: Intellectual Property - Trademark
Cause: 15:1125 Trademark Infringement (Lanham Act)
Jurisdiction: Federal Question
Jury Demanded By: None
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