Boca firm sues over alleged construction defects that forced tenants to evacuate

Southstar Capital Group sued Houston-based Hines for allegedly defective construction of a 306-unit rental property near Walt Disney World

TRD MIAMI /
Jun.June 09, 2018 03:20 PM

Sola at Celebration

A Boca Raton-based landlord sued the developer of an apartment complex in Central Florida alleging that construction defects forced tenants to evacuate.

Southstar Capital Group filed its lawsuit in the Ninth Judicial Circuit Court of Osceola County against Houston-based real estate firm Hines.

Southstar acquired the 306-unit apartment complex from Hines in September 2016 for $67 million.

Hines was the developer of the rental property, and its affiliate Urban Oaks Builders was the general contractor. The lawsuit against Hines also named Urban Oaks as a defendant.

The lawsuit alleges that the defendants withheld, concealed and misrepresented construction defects at the apartment complex at 1662 Celebration Boulevard in Celebration, a master-planned community near Walt Disney World.

Southstar claims that the alleged construction defects were undetectable in a normal inspection and became apparent in February 2017.

According to the lawsuit, cantilevered corner balconies began to lean downward, cracking walls and breezeway surfaces, and the subsequent removal of layers of walls and floors revealed violations of the Florid Building Code.

In August 2017, the Osceola Building Department issued notices of evacuation for all six buildings at the apartment complex, now known as Sola at Celebration. Hines originally had named the complex Aviva at Celebration.

Among other construction defects, the rental property at 1662 Celebration Boulevard allegedly has improperly built structural components, framing not built according to plans, and roofs, balconies and windows that lack proper waterproofing.

The lawsuit further alleges that construction defects have caused damage to units and common areas due to water and mold. Through its lawsuit, Southstar seeks monetary damages for repair work, loss of rental income and legal fees. – Mike Seemuth


Related Articles

arrow_forward_ios
Gables Town Colony apartment complex, Sue Ansel of Gables Residential

Gables Residential scores $85M loan for Boca Raton apartment complex

Gables Residential scores $85M loan for Boca Raton apartment complex
Laura Hines-Pierce and Jeff Hines

Hines CEO talks coronavirus, Opportunity Zones and WeWork

Hines CEO talks coronavirus, Opportunity Zones and WeWork
Broadstone City Center with Alliance Residential’s Bruce Ward and Nuveen CEO Jose Minaya

Nuveen pays $103M for West Palm luxury apartments

Nuveen pays $103M for West Palm luxury apartments
Edmund Ansin and the property (Credit: Google Maps)

Billionaire TV family sells Miramar property to Florida Crystals

Billionaire TV family sells Miramar property to Florida Crystals
Toscana apartments and Juan Porro of FCI Residential

Florida Crystals sells Margate rentals for $60M

Florida Crystals sells Margate rentals for $60M
From left: Andrea and Renzo Rosso

Diesel family dishes on Wynwood condo project

Diesel family dishes on Wynwood condo project
 4601 Le Jeune Road, Jose Boschetti and Maurice Boschetti

Gables Residential sells dev site near Shops at Merrick Park

Gables Residential sells dev site near Shops at Merrick Park
Greg Pinkalla and ORA Flagler Village Apartments (Credit: Google Maps)

Fairfield Residential sells new Flagler Village apartments for $92M

Fairfield Residential sells new Flagler Village apartments for $92M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...