Yesterday, I took a ride down to NYC on Amtrak. Along the way I started talking with someone from AJ Martini, a big Boston (and now, Miami) construction contractor. We had a very interesting conversation about buildings and architecture. We eventually got around to discussing one of Martini's (past) projects, Broadluxe.

He shared some juicy gossip about Martini suing the project's lender. I joked that I was going to post a story about it, but would refer to him as "a reliable source, speaking off the record".

Guess I didn't need to bother.

Here's what happened.

Earlier this year, TD Banknorth regained control of the Broadluxe condo development, located on Broad Street, in the Financial District (facing the Rose Kennedy Greenway Parkway).

The developer had run out of money, and the project was troublesome, basically because it was a renovation of an existing, 19th-century building.

The assumption had been that TD Banknorth would turn around and sell the project, which is supposedly 85% complete.

Instead, they are holding onto it.

Recently, they hired a new contractor to finish work on it.

Meanwhile, Martini is saying they are out $5.5 million in unpaid construction bills.

And, they want to be paid.

Actually, now that I think about it, I should feel happy that AJ Martini has been shut out.

Why? Because, Martini was the original contractor on the Court Square Press project, until Pappas Properties (hi, Tim!) fired them, halfway through, citing inferior work. Martini then sued Pappas for unpaid bills (are you sensing a trend, here?), and ... PUT LIENS ON ALL OUR UNITS, which basically made it impossible for us to sell, until the lawsuit was resolved. (In reality, it hasn't been resolved, I don't think; Pappas put the contested money into an escrow account, and is letting the courts decide who is right and who is wrong. By doing this, the liens were lifted.)

But, it sounds as though Martini has the facts in its favor.

Regardless, it's gonna be a tough sell for the developer / owner / lender, if and when they finish the project, this winter.

Maybe they'll make them rentals?

More: Condo Revival Fuels Bank, Contractor War - By Joe Clements, GlobeSt.com

Also: Bank sued over work on foreclosure - By Scott Van Voorhis, The Boston Herald