As viewed from West 48th Street, it is clear that construction progress on the Equinox Townhomes stopped months ago based on the condition of the site. The reason is due to legal battles underway regarding the project’s finances (NEOtrans). CLICK IMAGES TO ENLARGE THEM.
Completion of townhomes depends on court action
Eleven townhomes in various states of construction progress have been sitting idle since last fall and are becoming a worry to neighbors, based on social media posts and inquiries to NEOtrans. But based on court filings, further construction progress on the Equinox Townhomes, 1420 W. 48th St., in Cleveland’s Ohio City neighborhood may not happen for months.
In the meantime, the site rests silently under growing weeds, with one townhome not advancing above its foundation. Insulation on other, partly finished townhomes is peeling away. The site is vulnerable to Mother Nature and vandals. Neighbors are keeping their eyes on it, they said.
Equinox Townhomes stalled since last fall due to an apparent rift among the development partnership. As a result, the townhome project is the subject of two legal actions, both filed in Cuyahoga County Common Pleas Court.
One is a foreclosure by The Middlefield Banking Co. filed in November 2024 against all of the principals involved in the project including the developer Equinox Townhomes Development, LLC of Garfield Heights, the general contractor Driven 4 Group LLC and its subcontractors.
Plaintiff Middlefield Banking is alleging in its foreclosure filing that Equinox Townhomes Development et al has failed to make any payments when due on a commercial promissory note delivered in June 2023 for a principal amount of $3,093,371.
Site plan with building and townhouse numbers for the Equinox Townhomes on West 48th Street, just south of Detroit Avenue (Payto Architects).
The plaintiff further alleges that the defendants agreed that any failure to make payments when due would allow Middlefield Banking to declare the entire amount of the loan to be due, along with any unpaid interest, late charges, fees, and collection costs, including reasonable attorneys’ fees.
At the time of the filing of the complaint, Middlefield Banking said the amount due is $519,334.55 — a number which it says is rising with interest and collection expenses incurred.
In the absence of a settlement, fact discovery cut-off is Dec. 12, expert and rebuttal reports are due in early 2026, followed by additional motions and briefs due up to May 18, 2026. Final pretrial and jury trial dates will be scheduled thereafter by separate order by Judge Cassandra Collier-Williams.
The other complaint, being heard by Judge Sherrie Miday, was filed in May by Erika Brentar, a Cleveland resident who in October 2023 deposited $100,902.90 in escrow with Ace Title, LLC as a down payment to purchase one of the townhomes.
It was deposited under a contract that required the sale and purchase to close within 18 months or she could get her deposit returned. None of that occurred, according to her complaint. Brentar’s attorney, Matthew Rolf of Cleveland, declined to comment on the matter when contacted by NEOtrans.
Aerial rendering of the Equinox Townhomes, looking west from above West 48th Street in Cleveland’s Ohio City neighborhood (Payto).
Ace Title responded last month by depositing with the clerk of courts $90,902.90 of Brentar’s funds. In notifying the judge it was depositing those funds with the court, Ace Title also urged Brentar and Equinox Townhomes Development “to interplead and settle the matters in controversy among themselves,” its counsel noted in a filing.
But Rolf alleged that, on or about Feb. 16, 2024, Ace Title cut a check for $10,000 to Equinox Townhomes, drawn on Brentar’s escrow deposit. Ace Title delivered that check to Allen Bundy, chief financial officer of Driven 4 Group.
Rolf said “Bundy deposited that check into a Middlefield Bank account, signing his name below the words ‘Equinox Townhomes Development LLC’.” Through its legal counsel, Driven 4 Group “has represented it never received those funds for actual construction and development of the premises, nor for any other reason,” Rolf’s filing noted.
Equinox Townhomes Development reportedly is owned 70 percent by Topson LLC. Topson was initially formed in Cuyahoga County in 2014 “to distribute high-quality electronics including speakers, headphones and wireless devices,” Rolf said.
Brentar’s filing says 15 percent of Equinox is owned by Chieuti Holdings LLC, which is solely owned by Michael J. Marous of Driven 4 Group. Another 15 percent of Equinox is owned by TJA LLC, in turn solely owned by Rick A. LoConti of Tri-County Electric.
Yu Fei, also known as Caleb Fei, of Westlake, is managing member of Topson and, in turn, is managing member of Equinox, according to the complaint filed by Brentar.
A ground-level view rendering of the Equinox Townhomes as viewed from West 48th Street (Payto).
NEOtrans was informed on the condition of anonymity by a party close to the development team and who said is familiar with its business activities that Fei “wouldn’t continue the construction loan.”
NEOtrans reached out to Fei’s attorneys Shelly LaSalvia and Kirk Roessler at Brennan Manna Diamond for comment on that allegation but they did not respond prior to publication of this article. Roessler filed a motion yesterday denying some of Middlefield Banking’s allegations while acknowledging others including its role in the development.
“Topson admits that it failed to make certain payments when due pursuant to the note referenced therein, but denies that such failure constitutes a default under the terms of the note,” the motion stated.
It continued, “Topson denies that Plaintiff (Middlefield Banking) is entitled to declare the entire amount of the loan evidenced by the note to be due and payable without notice.”
An architectural site plan for the Equinox Townhomes showing the ground-floor layouts (Payto).
Equinox Townhomes Development acquired in May 2023 just under one-half-acre of land on West 48th from Topson and subdivided it later that year into 11 parcels — one for each planned townhome. Topson acquired the site in 2018, Cuyahoga County property records show.
Equinox was issued three separate building permits on Oct. 4, 2023 by the city for the project, according to public records. One was issued for two townhomes in Building 3, 1424 W. 48th, and three townhomes in Building 4, 1428 W. 48th. Together, they totaled $1.3 million worth of construction work.
Building 2, 1422 W. 48th, with another three townhomes, was awarded a $785,337 construction permit. And, Building 1 at the same address but with just one townhome, was granted a construction permit by the city for $261,778 worth of construction work. Additional permits for electrical, plumbing and HVAC work were issued.
No permit applications or issuances could be found for Building 5 which is planned to have two townhomes. And no occupancy permits for any of the Equinox Townhomes were issued. But Driven 4 Group is progressing on two other 11-unit townhome developments to address the market’s lack of for-sale housing inventory.
Close by at Bridge Avenue and West 47th Street, construction is nearly done on Bridge Avenue Townhomes, in partnership with Jim Miketo, owner of Forest City Shuffleboard on Lorain Avenue. And, Driven 4 Group and Hilane Realty are partnering on building an 11-unit development in Lakewood called Thoreau Place.
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