A lawsuit has been filed against developers Terra and Russell Galbut, alleging they failed to provide a promised amenity at the Five Park condominium tower in South Beach. The complaint, brought by Jay Newman as trustee for the Jay H. Newman trust, claims that short-term guest suites were marketed as available to condo owners’ invitees but have not been provided.
Newman, a former hedge fund portfolio manager with Paul Singer’s Elliott Management, purchased a penthouse at Five Park for $17.3 million in 2024. After attempting to reserve a guest apartment, he was allegedly informed that such an amenity did not exist and that the apartments in question were being listed for sale instead.
The development entity named in the suit is TCH 500 Alton. According to the lawsuit filed in Miami-Dade Circuit Court, marketing materials presented to Newman included a fact sheet and mockup identifying nine guest suites on the fifth floor, as well as a condominium declaration stating these units would be available to owners and their guests.
Terra, based in Coconut Grove and led by David Martin, partnered with Miami-based GFO Investments—Galbut’s family office—to develop the 227-unit tower at 500 Alton Road. The joint venture declined to comment on the allegations.
In response filed with the court, the developers denied any wrongdoing and stated that while short-term guest suites are not currently available, they will be made accessible for use by any unit owner.
Five Park is part of a wave of new luxury condominiums in South Florida that have attracted affluent buyers during a recent real estate boom in the region. Other notable sales at Five Park include biotech fund manager Daniel Krizek purchasing a penthouse for $19.5 million and an entity linked to Patrick Dovigi’s Toronto-based GFL Environmental acquiring another penthouse for $17.5 million.
