Where there's smoke, there's ire
Otto's former owners hire Rusty Hardin and file suit against prominent realestate broker
The sale of Otto’s, the favorite barbecue joint of President George H.W. Bush, has spawned a lawsuit that’s a little more controversial than a plate of smoky brisket and ribs.
The former owners of Otto’s, Marcus Sofka and his wife, June Sofka, have filed suit against their former real estate agent, David L. Cook of Cushman & Wakefield. And they have hired one of Houston’s most high-powered attorneys, Rusty Hardin.
Sofkas sold the Otto’s property, located on Memorial Drive, just east of Memorial Park over a year ago for $2.2 million. The couple maintains in the suit that it missed out on a chance to sell the property for over $6 million many months earlier because the broker failed to let them know about a would-be purchaser’s offer to buy it.
Closing Otto’s and selling the restaurant was intended as a way for the Sofkas to fund their retirement after having labored over the barbecue pit since 1951.
President Bush began coming to Otto’s in 1959 and his love for the place was well-chronicled over the years. His standard order was beef ribs, sausage links, brisket, a side of beans and pecan pie. The elder Bush was there the day Otto’s closed in January 2010, telling KHOU-TV: “They put on a good barbecue. I’ll miss them. Our family will miss them."
In August of 2007, the Sofkas decided to close the restaurant and listed the property — a little more than an acre — for sale with Cook.
Cook is no rookie Realtor. A former president the Houston Association of Realtors, he has been a leader in the real estate industry and was named chairman of the Texas Real Estate Commission in 1988. His list of awards is long: NAIOP Industrial Broker of the Year, the Real Estate Professional of the Year and many others.
After listing the property, the lawsuit says Cook informed the Sofkas that Houston apartment magnate Marvy Finger was preparing to make an offer to buy the Otto’s site. But Finger never made an offer in writing, only talked about it, the lawsuit says.
In the meantime, another local developer, Ponderosa Land Development Co., submitted a written offer to buy the land for $105 per square foot — or about $6 million. But Cook did not let the Sofkas know about the Ponderosa offer, as is required by law, the lawsuit maintains.
Then the real estate market went into a rapid descent as the nation’s economy crashed. Finger withdrew his interest and the Otto's property went unsold for over a year.
The buyers then hired a new broker, Moody Rambin Interests, and the site was eventually sold for $38 per square foot to Ponderosa, which had returned with a much lower offer than it did before the economic downturn.
Cook could not be reached for comment Wednesday. Cushman & Wakefield spokesman Dwayne Doherty said: “We have not seen the allegations and would reserve comment until we’ve had a chance to review it.”
Cook’s failure to present Ponderosa’s first offer was a violation of the Texas Occupational Code and damaging to the Sofkas, the lawsuit says.
Ponderosa is now constructing a retail center anchored by a Chase bank on the property, said James Chang, head of Ponderosa. The bank will open this summer, Chang said.
