David Werner sues Yoel Goldman for return of $15M deposit

By Adam Pincus

Real estate investor David Werner filed a suit yesterday seeking the repayment of a $15 million deposit he made toward the $344 million purchase of a 72-building portfolio of All Year Management rental properties in Brooklyn. The suit claims the purchase agreement was terminated.

Werner sued using the entity DW Brooklyn 75 LLC. The defendants included Goldman personally and the entities 101 Quincy LLC, 1012 Willoughby LLC, 1055 Dean LLC, 1058 Bergen Street, LLC, 1088 Bedford Ave LLC, 591 Franklin LLC, 1136 Willoughby LLC, 1159 Dean LLC and others.

The properties included 101 Quincy Street, 1012 Willoughby Avenue, and approximately 70 others.

The $344 million contract was signed on March 5, as PincusCo first reported, and Werner made the $15 million deposit at that time. Not, however, in escrow but given to Goldman in exchange for a personal guaranty from Goldman that he would return the money upon the termination of the sale agreement, according to the complaint.

The closing date was set for May 5, 2020. That closing was in danger, the suit says, because Werner became aware that the disclosed rent roll of $1.9 million per month was reduced by tenants seeking rent reductions because of Covid-19. After investigating the issue, Werner, according to this complaint, sent a notice May 4 that the contract was terminated and he wanted his down payment returned.

There was no mention in this lawsuit of a contract modification, which All Year mentioned in a filing with the Tel Aviv Stock Exchange last summer.

On July 1, 2020, All Year filed a document on the Tel Aviv Stock Exchange stating the contract had been modified and the purchase split into two sections, as The Real Deal reported at the time.

However, All Year filed documents with the Tel Aviv Stock Exchange in late August indicating that the new contract was not holding up.