The Real Deal Los Angeles

High-rise, leaky lines: Lawsuit alleges luxury San Pedro condo was poorly built

The 16-story property was developed by Carlyle Group in 2008, and later sold to Carmel Partners
By Natalie Hoberman |
Research by Laura Hanrahan
July 12, 2018 04:00PM

Exterior and interior shots of The Vue (Credit: CarmelaApartments, Pixabay)

To start, the Vue Homeowners Association claims the windows at the property, located at 255 W. 5th Street, were manufactured from a defective material that has led to “excessive condensation” in the building. The association also contends that the plumbing, sewer and utility systems were built incorrectly, leading to leaks.

The faulty construction has also caused kitchen waste — and sewer waste — to pile up in the pipelines, according to the suit, filed last month in Los Angeles Superior Court.

Beverly Hills-based Galaxy Commercial Holding and the Carlyle Group jointly developed the 318-unit property in 2008. It features one- two- and three-bedroom units, as well as a pool, 24-hour concierge service, fitness center, rooftop terrace and media lounge.

Riddled with complications that stemmed from the recession, such as slow sales and a foreclosed loan, the joint venture sold the 16-story building to Carmel Partners for $80.1 million in 2011.

It had cost $175 million to build, the Los Angeles Times previously reported.

The homeowners association named the LLC tied to the developers as a defendant in the suit. Also named as defendants are the subcontractor Starline Windows and its subsidiary, Starline Architectural Windows; along with the building’s general contractor Lendlease Construction.

Representatives for the plaintiffs and the defendants did not respond to request for comments. Carmel Partners declined to comment.

The Vue Homeowners Association said it is continuing to investigate the situation at the building and may find further defects on the property.