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Part I: Lawsuits allege construction defects in Florida condos

On its company website, Related Group boasts that it “is Florida's leading developer of sophisticated metropolitan living and one of the country's largest real estate conglomerates.” The company notes that it has built, renovated and managed more than 90,000 condos and apartment residences.

Not everything is as rosy as Related Group claims, however. A recent construction defects lawsuit filed against the company over One Ocean, a luxury 50-unit development in South Florida, makes that plain.

The South Beach development was supposed to be a jewel in Related Group’s portfolio – the company’s CEO and chairman Jorge Pérez has a penthouse there. But Perez is trying to sell his four-bedroom One Ocean property and has reportedly had to slash the price by nearly half to try to generate interest in it. According to news reports, his initial asking price was $20 million, but Perez has chopped that down to $11 million.

The lawsuit accuses Related, the project’s general contractor, three subcontractors and its architect of failing to address defects in a pair of condo units. The suit follows one filed seven months ago by the One Ocean Condominium Association that also alleged construction defects.

An attorney for the plaintiff in the most recent suit says Related and the general contractor have failed to fix a number of deficiencies that are covered by warranty, including plumbing problems, improperly installed lighting and a spa pump that does not work. She said parking spaces at the luxury property are also too small.

We will have more on this dispute in an upcoming post. Please check back.

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