The Real Deal Miami

Vizcayne condo associations stuck with building costs

The Miami associations are suing for control of the towers

October 14, 2014 12:45PM

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Vizcayne condo tower located at 253 NE 2nd Street

Vizcayne condo tower located at 253 Northeast 2nd Street

Two condo associations at a pair of luxury Miami high-rises – both victims of the housing crash — are refusing to cover a construction cost run-up after the projects were sold in bankruptcy.

The associations for the north and south towers at Miami’s Vizcayne are suing for control of the towers, according to the Daily Business Review. They claim that the private equity firm that finished construction misused funds and wrote off its expenses as a loan to the associations.

“It’s about unit owners getting stuck with what the hedge fund should have paid,” said David Haber, an attorney representing the north and south condo associations. “They made a lot of money on the sale of the units, but they didn’t have the right to stick it to the unit owners. It’s about greed.”

The development, which is located at 253 Northeast 2nd Street, includes 409 units in the north tower and 440 in the south tower. Unit prices range from about $240,000 to $2.5 million. [Daily Business Review]Christopher Cameron

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