Coming soon to a Stamford tower near you?

Buyers sue Newport luxury condominium project for refunds.

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Carnegie Tower

By Christine Dunn

Journal Staff Writer

PROVIDENCE –– Three new lawsuits seek the return of deposits for luxury condominiums at the 22-story tower which opened in June at the exclusive Carnegie Abbey resort and golf club in Portsmouth.

The plaintiffs include Dr. James Yashar of Florida, a physician who formerly lived in Providence’s East Side; Richard J. and Jody E. Martin of South Salem, N.Y.; and John R. Ranelli and G. Ashley Davis-Ranelli of Niantic, Conn.

All three complaints claim the right to refund because the developer issued a “Supplement to a Public Offering Statement” on July 15, 2009.

The complaints state that under Rhode Island law, the buyers “have the absolute right to cancel” their purchase agreements within 10 days of receipt of an amended statement; and that all the plaintiffs exercised their rights to cancel on July 21.

“We’re not going to be able to comment … on the advice of legal counsel,” said Edward T. Lopes, Jr., senior vice president of development for O’Neill Properties Group. Lopes guided the tower construction, which cost in excess of $80 million.

A similar lawsuit brought earlier this year by noted Democratic Party fundraiser Mark S. Weiner and his wife, L. Susan Weiner, of East Greenwich, appears to have been settled out of court. The Weiners had sued for the return of their $219,300 deposit.

To date, only one of the 79 condos at the Carnegie Tower has been sold; unit 805 closed on Sept. 2 for $1.6 million.

(hat tip, Pat M)

3 Comments

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3 responses to “Coming soon to a Stamford tower near you?

  1. Golfer

    We stayed at Carnegie Abbey a number of times and absolutely loved it so we looked into buying a place there and even considered the tower. Everything was so expensive and the dates of the tower completion kept changing. I remember being told about the fully refundable deposits to hold a unit in the tower. Lucky for us we did not get involved.

  2. Cos Cobber

    Am I wrong, or is this tower completely out of scale with this coastal community? Who really thought that little Rhody was ready for Virginia Beach/Coast FL type development?