Las Vegas Sun

August 28, 2014

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Broker alleges breach of contract in LV hotel deal

A company that says it has served as a consultant and broker on deals for the owner of the Alexis Park Hotel has filed suit in Clark County District Court, alleging that the hotel owners bypassed it when the property was sold to Los Angeles businessman Richard Alter in May.

Southern Nevada-based Hotel Financial Strategies (HFS) filed the suit last month, naming Louis Habash, Hotels Nevada LLC, Inns Nevada LLC, AIPA Partnerships Inc. and APH Inc., all of which have interests in the Alexis Park and the Americana Inn Apartments, which were acquired by Alter's Financial Capital Investment Co.

According to the suit, HFS, which had worked with Habash in the past, had an oral contract with him for a consulting services and brokerage contract paying 1 percent of the gross sales price.

The suit said that on Feb. 23, negotiations progressed to the point that the parties were negotiating a price and that HFS agreed to accept a fee of $500,000 provided that the sales price was at or near $66 million. The suit said Habash verbally agreed to those terms.

But a month later, when Alter formed a subsidiary called L.A. Pacific Center Inc., negotiations occurred between the subsidiary and Habash's companies for $75 million, the suit says. At the close of escrow May 13, HFS demanded payment of $500,000 based on a final sales price of $70 million.

The suit alleges breach of oral and implied contracts and fraud and deceit and seeks the amount of the original oral agreement, plus unspecified general, special and punitive damages.

Representatives of the Habash companies could not be reached for comment.

Alter, a runner-up in the bidding for the acquisition of the Aladdin hotel-casino and the Las Vegas Hilton last year, plans to invest $210 million to convert the 500-suite nongaming Alexis Park into luxury villas and demolish the apartments to build a casino, timeshare and condominium hotel in a 15-story, 990-room tower.

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