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former property manager and investor, Joseph Miller, has filed a lawsuit against Alden Global Capital's real estate division, Twenty Lake Holdings, and its affiliate Blue Suede Charlottesville Management. The complaint alleges that the companies attempted to shortchange Miller in his payout for South Florida hotels and warehouses, as well as a larger nationwide portfolio.

    Miller managed the portfolio and held equity in it since 2011, when he started working with Alden co-founder Randall Smith. He became a minority equity partner with a 10% stake in Twenty Lake and a 3% stake in two Blue Suede hotels. After parting ways last year, Twenty Lake offered Miller $3.5 million for his stake in the portfolio, while Blue Suede's affiliate offered him just $2 for his stake in the two hotels.

    The lawsuit claims that this was far below the "book value" of the properties, which is the most recent valuation of the portfolio. The complaint states that Smith and Twenty Lake have tried to buy out Miller's equity interests at "bogus, fire-sale prices," contrary to their agreement.

    Miller could be owed more than $15 million for his Twenty Lake equity, based on an August valuation of 88 properties in the portfolio. He may actually be owed over $26 million based on third-party appraisals. The Twenty Lake portfolio spans 10 million square feet and includes several South Florida properties, including industrial complexes and warehouses.

    Miller's lawsuit disputes only his payout for two specific hotels: the Daydrift hotel in Miami Beach and the Doyle in Virginia. Blue Suede paid $12.8 million for the Daydrift hotel last year, with a projected net operating income of $1.4 million this year. The Doyle's projection is $2.8 million, with further increases expected next year.

    The complaint alleges that Smith told Miller they could work together in the future after parting ways, suggesting that there was no wrongdoing on Miller's part. However, when Miller inquired about the proposed payouts, he was told by Christopher Minnetian, president of Alden Global parent company Smith Management, that Smith would not overpay him "by a dime."