The Real Deal Miami

Alan Faena’s companies hit with second lawsuit from dissatisfied buyer

Suit alleges $7.3M unit had cracked mirrors, missing appliances and no kitchen cabinets
By Francisco Alvarado | December 16, 2016 09:45AM

Rendering of Faena House, developer Alan Faena and Haresh Tharani (Credit: Getty Images)

UPDATED Dec. 16, 1 p.m.: Another disgruntled buyer at Faena House is accusing the developer of shoddy construction that allegedly made a unit at the posh Mid-Beach condo tower uninhabitable.

Haresh Tharani, a fashion industry tycoon who once chaired the board of Bill Blass International, accuses Alan Faena’s companies, Tower 3315 LLC and Faena Group, of breach of contract and negligence in a recently filed Miami-Dade Circuit Court lawsuit.

In his lawsuit, Tharani alleges that despite closing on December 11 of last year, he has been unable to move into his fourth-floor, four-bedroom unit at Faena House because it remains unfinished. The claims mirror allegations made by Russian buyer Ruslan Shudrik in a separate complaint filed in October. Tharani’s lawyer, Alan Kluger, did not respond to email requests for comment.

A Faena spokesperson, who did not want to be identified, declined comment about the lawsuit’s specific allegations, but acknowledged the developer is aware of Tharani’s complaints.

“I can assure you that Alan has a strong and positive relationship with Haresh, and that they are working together to ensure the best outcome for all,” the representative said in an emailed statement.

The spokesperson later forwarded an email from Therani, saying “Faena Group has been highly responsive to my needs. I’m a great believer in Alan’s vision which has transformed Miami and as we look into future his vision will be legendary,” he wrote. “New construction can come with challenges with many providers but The Faena Group is acting in the most professional manner and this matter is already resolved.” Yet, the suit, filed Nov 28, remains open in Miami-Dade records.

During the closing walkthrough, Tharani’s suit states, Faena agreed to remedy several items on a punch list that had to be completed before he could take possession of the $7.3 million unit. “The punch list included major defects in the unit that, until remedied, prevented the Tharanis from moving into their unit and deprived them of the use and enjoyment of their unit,” the lawsuit states.

Specifically, the unfinished kitchen did not have cabinets and was missing appliances, the bathrooms had broken mirrors, and balcony railings had broken glass. Tharani alleges Faena has been slow to fix the defects, noting the balcony repairs did not commence until September of this year.

“The cracked glass on the balcony — which is a serious hazard — has not been replaced as of the filing of this complaint,” the lawsuit alleges.

By failing to fix the punch list items, Faena has “greatly inconvenienced” Tharani, who still has to pay taxes, insurance, maintenance and other costs, according to the lawsuit. He has also been prevented from renting out his condo to offset the costs of his expenses, Tharani claims. Miami-Dade property records also show that Tharani and his wife also own a pair of two-bedroom units at the Caribbean condo building at 3737 Collins Avenue.

Faena House, a new 18-story building at 3315 Collins Avenue, is one of the first completed projects in Miami Beach’s Faena District. It’s home to a host of Wall Street billionaires and financial gurus who snapped up the building’s condos during preconstruction sales, though some — most notably hedge fund honcho Ken Griffin — are now trying to flip their units.