GREENVILLE, S.C. — The city of Greenville has sued the developers of The McDaniel, a stalled luxury townhome project on McBee Avenue, claiming that runoff from the construction site eroded city-owned land the city plans to use for an extension of the Swamp Rabbit Trail, FOX Carolina reported.
The complaint, filed Tuesday, names McBee Townhomes LLC, McBee Townhomes II LLC and Keene Development Group LLC. According to FOX Carolina, the city alleges the developers did not comply with approved civil engineering plans and maintenance requirements, and that in 2024 significant amounts of storm and surface water flowed from the townhome property onto adjacent city land. The city says that parcel was stable before construction began and has since eroded, meaning it must do more work before the trail extension can proceed. The city is seeking damages. The developers told the station the lawsuit had not yet been served and declined further comment.
The McDaniel was marketed in 2023 as one of Greenville’s most upscale for-sale residential projects. The city planning commission voted 5-1 in April 2023 to advance plans for 20 townhomes in five buildings on roughly 2 acres, with units then priced around $1.4 million, FOX Carolina reported at the time. Pre-sales opened that June, and half of the first-phase units were reserved within about six weeks, according to a report in Who’s On The Move. The four-story homes were designed at 3,100 to 4,100 square feet with a limestone facade, and a second phase was to add 10 more units.
Work stopped in 2024, and the project has been mired in disputes since. The Post and Courier reported in May that three contractors — H&H Concrete, PK Legacy Builders and Yoder’s Building Supply — claim they are owed a combined $274,367, and two of them have filed mechanics liens. In June, the newspaper reported that developer Kyle Keene had sued Fountain Inn-based P + F Construction, the contractor hired in July 2025 to resume work, for breach of contract, after terminating that firm’s contract in May. Asking prices for units had topped $2.5 million, according to the Post and Courier. Keene told the paper in May that he expected work to restart, saying “we are at the end of the road here with this pause.”
Keene also told the Post and Courier that while Hurricane Helene affected the project, the bigger obstacle was the tight, steeply sloped 2-acre site. That detail underscores the risks of high-end infill development close to downtown Greenville, where small, irregular parcels can drive up engineering and stormwater costs and expose builders to claims from neighboring owners, including the city itself.
For buyers who reserved units, the new suit adds another layer of uncertainty to a project already well behind its original late-2024 completion target. For developers and investors weighing luxury townhome infill near downtown, the case is a reminder that site engineering and stormwater compliance can carry liabilities that extend beyond the property line — and, in this case, into one of the city’s signature public amenities.
Sources: FOX Carolina, The Post and Courier (May 2026), The Post and Courier (June 2026), FOX Carolina (2023), Who’s On The Move
Leave a Reply