ASVRF Paterson Plank RD J-C, LLC v. Brass Works Urban Renewal Company, LLC

CourtCourt of Chancery of Delaware
DecidedNovember 21, 2025
Docket2025-0549-LWW
StatusPublished

This text of ASVRF Paterson Plank RD J-C, LLC v. Brass Works Urban Renewal Company, LLC (ASVRF Paterson Plank RD J-C, LLC v. Brass Works Urban Renewal Company, LLC) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ASVRF Paterson Plank RD J-C, LLC v. Brass Works Urban Renewal Company, LLC, (Del. Ct. App. 2025).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

ASVRF PATERSON PLANK RD J-C, LLC,

Plaintiff/Counterclaim- Defendant,

v. C.A. No. 2025-0549-LWW

BRASS WORKS URBAN RENEWAL COMPANY, LLC,

Defendant/Counterclaim- Plaintiff,

and,

ROBERT M. GREER, ROBERT F. GREER, SANFORD WEISS, and CITY HOMES AND GARDENS, LLC,

Defendants,

PATERSON PLANK RD J-C, LLC,

Nominal Defendant / Nominal Counterclaim- Defendant.

MEMORANDUM OPINION Date Submitted: September 12, 2025 Date Decided: November 21, 2025

Rebecca L. Butcher, Jennifer L. Cree, Howard W. Robertson IV, LANDIS RATH & COBB LLP, Wilmington, Delaware; Kirk L. Brett, Patrick T. O’Connor, ADLER & STACHENFELD LLP, New York, New York; Attorneys for Plaintiff and Counterclaim Defendant ASVRF Paterson Plank RD J-C, LLC Brian M. Rostocki, Nicholas R. Rodriguez, Evan D. Sweeney, REED SMITH LLP, Wilmington, Delaware; Timothy J. Muyano, REED SMITH LLP, Philadelphia, Pennsylvania; Attorneys for Defendant and Counterclaim Plaintiff Brass Works Urban Renewal Company, LLC

WILL, Vice Chancellor This expedited post-trial opinion resolves a struggle for control over a limited

liability company that indirectly owns a New Jersey residential complex. The

defendant real estate sponsor defaulted on its payment obligations to the plaintiff

preferred equity investor, triggering a contractual removal remedy. When the

defendant failed to cure its default, the plaintiff exercised its right to remove the

defendant as the company’s manager.

Rather than step aside, the defendant dug in. It ignored the removal notice,

denied the new property manager access to the site, and purported to “redeem” the

plaintiff’s interest without the authority to do so. This suit followed.

The plaintiff asks that I confirm it is the company’s rightful manager. The

defendant asks me to look past the plain text of the parties’ agreement to avoid what

it deems an equitable forfeiture. But Delaware courts enforce contracts as written.

The defendant defaulted, the plaintiff followed the contractual roadmap to replace

the defendant as manager, and the defendant breached its obligation to facilitate that

transition. Judgment is for the plaintiff.

1 I. FACTUAL BACKGROUND

Unless otherwise noted, the following facts were stipulated to by the parties

or proven by a preponderance of the evidence at trial.1

A. The Cliffs

This case raises a control dispute over Paterson Plank RD J-C, LLC. At its

heart, the dispute concerns the ownership and management of The Cliffs Lofts, a

120-unit residential building in Jersey City, New Jersey.2

The Cliffs is the crown jewel of the Greer family, who has developed,

financed, and managed over 1,000 residential units in northern New Jersey. 3 In

2002, Robert (Bobby) M. Greer with his sons Robert (Rob) F. Greer and Jonathan

Greer, purchased the property—then a “grimy” abandoned warehouse.4 After six

years of “sweat equity,” Bobby and Rob Greer developed it into a luxury residential

property.5

1 See Joint Pre-trial Stipulation and Order (Dkt. 70) (“PTO”). The trial record includes 187 joint exhibits, five deposition transcripts, and live testimony of two fact witnesses. Trial testimony is cited as “[Name] Tr. __.” See Trial Tr. (Dkt. 87). Exhibits are cited by the numbers provided on the parties’ joint exhibit list as “JX __,” unless otherwise defined. See Joint Tr. Ex. List (Dkt. 71). 2 See Aff. of Eric J. Cannon (Dkt. 72) (“Cannon Aff.”) ¶ 4. Eric Cannon submitted an affidavit in lieu of live direct trial testimony. 3 Aff. of Robert F. Greer (Dkt. 69) (“Greer Aff.”) ¶ 8. Rob Greer submitted an affidavit in lieu of live direct trial testimony. 4 Greer Aff. ¶¶ 9-11. 5 Id. ¶ 11.

2 The Greers initially hoped to sell high-end condominiums in the Cliffs.6

Because the project was completed amid the 2008 financial crisis, they launched the

Cliffs as a rental building.7 Another Greer-family-owned company, City Homes and

Gardens, LLC, began leasing and managing the property.8

B. The LLC Agreement

Sometime in late 2020 or early 2021, Bobby Greer approached American

Realty Advisors (“ARA”), a private equity real estate investment management firm,

about providing capital to the Cliffs.9 ARA sent him a term sheet listing the principal

terms under which it would invest.10 The term sheet contemplated that ARA and

Greer affiliates would be the sole members of a newly formed entity.11

On June 29, 2021, ARA affiliate ASVRF Paterson Plank RD J-C, LLC and

Greer affiliate Brass Works Urban Renewal Company, LLC executed the Limited

Liability Company Agreement (“LLC Agreement”) of Paterson Plank RD J-C, LLC

6 Id. ¶ 9. 7 Id. ¶ 12. 8 Id. ¶ 13; see JX 6 (Property Management Agreement). 9 Greer Aff. ¶ 14. 10 Id. ¶ 15; see JX 2 (term sheet); see also American Realty Advisors, https://www.aracapital.com (last visited Nov. 18, 2025). 11 JX 2 at 1.

3 (the “Company”).12 The Company’s purpose is to acquire, operate, manage, and

improve the Cliffs.13 ASVRF contributed $18 million to the Company in exchange

for 100% of its Class B preferred equity.14 Brass Works contributed the Cliffs’ real

property, became the 100% owner of the Company’s Class A membership interests,

and was appointed the initial “Manager.”15

In the LLC Agreement, Brass Works agreed to cause the Company to pay

ASVRF a monthly preferred distribution.16 Brass Works also became obligated to

make capital contributions to fund any preferred return shortfall.17 If the Company

failed to pay an amount owed to ASVRF within ten days of its due date, an “Event

of Default” would occur.18

12 PTO ¶¶ 6, 8; JX 7 (“LLC Agreement”). The Company, a Delaware limited liability company, is the sole member of the entity that owns the property. PTO ¶ 6; see JX 3 (organizational chart). Brass Works is a New Jersey limited liability company indirectly owned by Bobby Greer, Rob Greer, Jonathan Greer, and Sanford Weiss. PTO ¶ 5; see JX 3. ASVRF is a Delaware limited liability company indirectly owned by ARA. PTO ¶ 4; see JX 3. 13 LLC Agreement § 2.6. 14 Id. at 1; id. at Ex. A. Id. at 1; id. at art. I (defining “Manager”); PTO ¶ 12 (stating that, as the Manager, Brass 15

Works was “charged with managing the affairs of the Company”). 16 LLC Agreement §§ 3.2, 5.1. ASVRF has priority for any distribution pursuant to a waterfall. Id. § 5.2. 17 Id. §§ 3.2, 5.1; see PTO ¶ 13. 18 LLC Agreement § 7.1(a)(ii)(A); id. § 7.1(a) (listing “Events of Default”); see PTO ¶ 14.

4 If an Event of Default remained uncured, ASVRF could pursue contractual

rights and remedies. One potential remedy was the removal and replacement of

Brass Works as the Company’s Manager.19 Another was to seek redemption of

ASVRF’s membership interests.20

C. The Default

Three years later, the Company failed to pay a preferred return of $81,236.15

that was due to ASVRF on August 1, 2024.21 The next day, ASVRF sent Brass

Works notice that an Event of Default would occur if the payment was not made

within the 10-day grace period (by August 12).22 No payment to ASVRF

materialized. On August 16, ASVRF sent Brass Works written notice of an Event

of Default.23

Brass Works ignored the notice.24 It continued to miss monthly distribution

payments to ASVRF.25 Meanwhile, Brass Works said that it wished to recapitalize

19 LLC Agreement § 7.2(a)(ii).

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ASVRF Paterson Plank RD J-C, LLC v. Brass Works Urban Renewal Company, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asvrf-paterson-plank-rd-j-c-llc-v-brass-works-urban-renewal-company-llc-delch-2025.