Developers of 53-story Riverwalk Tower in downtown Tampa entangled in legal fight
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Sep 1, 2017

Riverwalk Tower, the 53-story mixed-use tower proposed on the downtown Tampa waterfront, is ensnared in a legal battle between the partners who were jointly pursuing the development.

Intown Group, the residential developer in the project, has sued Feldman Equities LLC, which is handling the office portion of the tower, over a breach in contract. It is seeking unspecified damages, costs and prejudgment interest, according to a lawsuit filed Thursday in Pinellas County circuit court.

The proposed tower includes 14 stories of office space and 31 stories of luxury residential units. It is a first-of-its-kind development for Tampa, on the last developable parcel of waterfront land in the urban core, and viewed as a watershed moment for the city's ongoing urban revitalization efforts. With ground-floor bars and restaurants that open up to the Tampa Riverwalk, the tower is expected to play a major role in activating the Riverwalk by drawing more nighttime foot traffic downtown.

The lawsuit pegs development costs at $225 million. The developers have sought city approval for a modular sales unit on the site, which was slated to be in place by late fall.

Intown alleges in its complaint that Feldman Equities has taken control of the residential portion of the tower, making decisions and changing previous design choices.

"Business disputes like this happen from time to time in large developments," Feldman Equities CEO Larry Feldman said in a statement Friday. "We are moving full-steam ahead with the project and are excited to bring to life what we believe will be a signature part of the Tampa skyline."

Greg Minder, Intown principal, declined comment Friday.

Intown had hired Smith & Associates to market the residential units, but according to the complaint, has "either left [the project] or was terminated by Feldman."

Smith & Associates executives were not immediately available for comment Friday.

"Feldman called several meetings with consultants and told those working on Riverwalk Tower that from that point forward, Minder would be advising and consulting on residential development," according to the complaint, "but that Feldman would be making the day-to-day and final decisions.

"Feldman's decision to relieve Intown of responsibility for the residential component was without justification, without authority and in direct violation of the contract."

Intown, Feldman and Tower Realty Partners acquired the land for Riverwalk Tower - at the intersection of Ashley Drive and Brorein Street in downtown Tampa - in late 2015 for $12.05 million.

Intown alleges in the complaint that private equity fund Greenfield Partners LLC was the original equity financing partner in the deal, but that it was replaced by GPB Riverwalk LLC.

A consultant hired by GPB in early 2017 concluded that the tower needed more residential units and less office space "in light of the lack of demand for office space in downtown Tampa."

"That recommendation displeased Feldman as Feldman Equities was primarily responsible for the office component," according to the complaint.

Ashley Gurbal Kritzer is senior reporter for the Tampa Bay Business Journal.