Business

Real estate commissions on $4.6 million in property deals in dispute at Bluhawk

Cosentino's Market and First National Bank have opened, but Bluhawk has yet to pay commissions on the sale of properties to them, a lawsuit claims.
Cosentino's Market and First National Bank have opened, but Bluhawk has yet to pay commissions on the sale of properties to them, a lawsuit claims.

This article was updated to reflect that Cosentino’s leased space at Bluhawk rather than purchased property.

A dispute over commissions has sprung up at the sprawling Bluhawk development in Overland Park, along with a Cosentino’s Market and a First National Bank of Kansas branch.

Block & Co. claimed it was hired by Bluhawk Market Place LLC to find interested buyers or tenants for the development at 159th Street and Antioch Road in Overland Park.

It found five: Ball Food Stores, Cosentino’s Markets, First National Bank of Kansas, AMC Theatres and Orschlen Farm and Home, according to its lawsuit filed in Johnson County District Court.

Bluhawk Market Place, the lawsuit claimed, has failed to pay Block & Co. $277,562 in commissions for helping attract the two businesses that ultimately moved in, Cosentino’s and the bank.

Cosentino’s leased part of the property for $3.6 million and opened its market last year, but Block & Co. claims it still has not received $216,562 in commission from Bluhawk on that transaction. First National bought property for about $1 million, but Block & Co. said it has yet to be paid $61,000 in commission from Bluhawk on that deal.

In each case, Bluhawk sold or leased the property during the term of the contract with Block & Co. or within 365 days after the contract’s expiration date, the lawsuit claimed.

Block & Co.’s lawsuit seeks judgments in the amounts of the commissions against Bluhawk Market Place LLC, Douglas M. Price and Kent Price, each of Price Brothers Management Inc. — though the company is not named as a defendant — and four limited liability corporations as well as 10 John Does said to be involved but not identified.

Douglas Price, general partner of Bluhawk, said the development has worked with Block & Co. and paid it commissions on other transactions but that Block & Co. was not involved in either the Cosentino’s or bank deals.

Another firm and real estate broker handled the bank transaction and received a commission, Price said.

In the lawsuit, Block & Co. claimed that Bluhawk Market Place and its owners, which consist of investors in a number of limited liability corporations, were “grossly undercapitalized” and conducted much of their business on a “cash” basis, including paying employees in cash.

Price said that Bluhawk and Price Brothers were well capitalized and denied that either paid employees in cash or worked on a cash basis.

Block & Co. real estate brokers David M. Block and Max Kosoglad also sued Bluhawk Market Place and the other defendants.

Bluhawk Market Place is part of a larger development that includes plans for a sports complex and arena and a Cosmosphere science and innovation center tied to the Cosmosphere museum in Hutchinson, Kan. It already includes Shawnee Mission Health Blue Valley and single-family homes.

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