Court dismisses developer’s QC NY Spa lawsuit

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Douglas Elliman’s Stefano Farsura with QC Terme (Kirsten Jordan, QC Spa, Getty)

A court dismissed a lawsuit filed by Stefano Farsura after Douglas Elliman’s agent and investor claimed he was barred from his investments in a luxury spa.

Italian spa company QC Terme partnered with Farsura in 2011 to expand from New York to North America. Under the agreement, Farsura would hold a 22 percent minority interest in the company.

Farsura — a managing partner of real estate investment and development firm Colonnade Group and husband of former “Million Dollar Listing New York” actress Kristen Jordan — brought QC Terme to Governor’s Island. The complaint said the developer secured engineers, local architects, attorneys and consultants, orchestrated the lease, received a $20 million tax credit, introduced investors to the project and persuaded the Landmarks Preservation Commission to approve the agree to the project.

According to the lawsuit, which was filed in the New York Supreme Court in November 2021, Farsura was not compensated for his efforts.

Things changed when private equity investor Whitebridge came into the picture and bought 47 percent of QC Terme’s global business. The group insisted that QC Terme renegotiate Farsura’s 22 per cent stake in the North American business.

“Rather than showing loyalty to Farsura, who came on board when their North American expansion was nothing more than a pipe dream and has been with the company every step of the way
Incidentally, QC Terme tried to change its business from a shareholder to an employee,” the complaint reads.

When Farsura refused to change the terms, QC Terme denied he was ever a shareholder and instead purchased all of the valuable assets of Delaware LLC, which was jointly owned by Farsura, pretending to dissolve the company and attempting to sell Farsura cash out for pennies.

However, in a series of motions filed Tuesday, mostly against Farsura, the court denied QC Terme’s motion to dismiss the infringement claims.

Neither Farsura, his legal team nor QC Terme responded to requests for comment.

The Italian spa operator was Governor’s Island’s first commercial tenant, The Wall Street Journal reported in 2014, with plans to remodel 80,000 square feet in three buildings. WWD reported that the development hit a snag with the outbreak of the pandemic, causing QC Terme’s revenues to drop from €91.5 million in 2019 to €39 million in 2020.

All told, the first phase of the project has yielded a $50 million redevelopment of military barracks. The location opened this spring and offers indoor and outdoor spaces for spa and wellness treatments, a ferry ride from the Financial District.

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