Florida-based Miller's Ale House chain has pulled out of a deal to open a full service restaurant at Pittsburgh's SouthSide Works complex, the Pittsburg Post-Gazette reported. The Florida-based chain's restaurant was supposed to measure 9,000 square feet and was set to be built on half an acre of land beside Hofbrauhaus, the report said.
The board members of the City Urban Redevelopment Authority or URA then overturned the resolutions concerning the sale of the lot to Soffer Organization's affiliate, Mon Shore MAH Associates LP. Soffer Organization is the developer of SouthSide Works, the report said.
Alfredo Maiello, attorney for the developer, told the Pittsburg Post-Gazette that the URA had consented to a sale of the land to Soffer for a price tag of $221,000 plus costs. However, the sale was never closed. He added that the parties involved in the deal were just a few weeks away from closing the deal when Miller's suddenly withdrew from the project. At this time Maiello said that Soffer had already finished the design work, gotten approvals from the URA and had contacted a contractor to perform foundation work.
According to Maiello, Miller did not give a reason for backing out of the project. However, he suspects that the withdrawal was somehow linked to restaurant chain's July sale to private equity firm Roark Capital Group which is based in Atlanta. He said "Nobody really knows a reason. The only thing we can figure is that the CEO and new owner didn't want to move forward with any project." Maiello added that it does not look like the chain is opening any restaurants in Pittsburgh as of the moment.
Soffer is mulling taking possible legal action as they feel that Miller defaulted under the terms of the deal, Maiello added.
A press release dated July 22, 2013 on the website of Roark Capital Group revealed that the private equity firm bought Miller's Ale House from founder Jack Miller and SKM Equity Fund III LP.
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