Incitatus vs. Adler: The Shocking Foreclosure Battle That Could Cost Millions!

Incitatus Real Estate, a brokerage based in New York, is intensifying its efforts to collect on a recent judgment of $1.2 million against the Adler Group, headquartered in Miami. On Tuesday, Incitatus filed a foreclosure complaint in the Miami-Dade Circuit Court against an affiliate of Adler that owns two development sites located at 230 and 300 Southwest Third Street in downtown Miami.

The complaint comes after a March 18 ruling by Miami-Dade Circuit Judge Lisa Walsh, which found that Adler had breached its 2020 “finance placing agreement” related to funding for the Modera Riverside project, a 36-story apartment complex that houses 345 units and includes ground-floor retail space.

Last year, Adler, led by brothers Michael and David Adler, along with Mill Creek Residential from Dallas, completed the Modera Riverside project. Incitatus is now aiming to seize the adjacent 0.7-acre parcel at 230 Southwest Third Street, referred to as the “Tower B Site,” where Adler and Mill Creek plan to build another high-rise similar in scale to Modera Riverside.

The final judgment against Adler arose from claims that the company failed to pay Incitatus a finder’s fee of $913,800, which accumulated to the aforementioned $1.2 million due to interest, attorney fees, and other costs. Incitatus asserts that it introduced Adler to CrossHarbor Capital Partners, a Boston-based firm that provided critical equity financing for the Modera Riverside project. According to court records, David Adler revealed that CrossHarbor acquired a 90 percent stake in the joint venture, leaving Adler and Mill Creek with only 5 percent each.

Under the terms of their agreement, Incitatus was entitled to a 1.5 percent fee for the capital it secured. The brokerage claims it actively facilitated the transaction, organizing discussions, distributing marketing materials, and ensuring a non-disclosure agreement was in place. However, Adler refused to compensate Incitatus following the project’s closing, later asserting that he sold the project to Mill Creek. Incitatus countered that it was indeed a joint venture where Adler retained ongoing ownership and cash flow.

Upon the emergence of this dispute, Adler attempted to terminate the agreement and accused Incitatus of submitting a “false invoice.” Nonetheless, Incitatus has maintained that it complied with the contract by providing a timely list of potential capital sources.

An attorney representing Adler’s affiliate indicated that the developer is planning to appeal the court’s decision. Meanwhile, Incitatus is moving forward to enforce the judgment. The foreclosure complaint also names City National Bank of Florida as a defendant due to its outstanding mortgage of $9.5 million on the 0.7-acre site, of which over $8.5 million remains unpaid. The filing seeks to clarify lien priorities and safeguard the bank’s interests should a foreclosure sale occur.

Despite the substantial equity and cash flow generated from the Modera Riverside project, along with the promising prospects of the Tower B site, Adler has yet to satisfy the judgment. Incitatus has also requested that the court appoint a receiver to collect rents and prevent any misappropriation of funds during the litigation process.

This undeveloped property is currently estimated to be worth tens of millions of dollars, adding further complexity to the ongoing legal drama. The outcome of this case could have significant ramifications not only for Adler but also for the broader Miami real estate market, where such disputes can impact investor confidence and development timelines.