One Ocean’s condo association sues Related alleging shoddy construction

Lawsuit accuses the developer, its contractors and architects of negligence in designing and building the 50-unit Miami Beach project

TRD MIAMI /
May.May 17, 2019 10:30 AM
Jorge Perez and One Ocean

Jorge Perez and One Ocean

Jorge Pérez’s effort to unload a four-bedroom penthouse he owns at One Ocean in Miami Beach may have just gotten more complicated.

Miami’s condo king just chopped nearly 50 percent off his original three-year-old asking price of $20 million on the unit, in response to the oversupply of luxury condos. Now, One Ocean’s condominium association is alleging Pérez’s firm, the Related Group, along with seven companies involved in the project’s construction, did a defective job building the 50-unit project at 1 Collins Avenue in Miami Beach’s South-of-Fifth neighborhood.

The association filed a lawsuit late last month in in Miami-Dade Circuit Court against the Related-owned entity that developed One Ocean, as well as project architects Ten Arquitectos and Sieger Suarez, general contractor Plaza Construction of Florida, and four subcontractors, alleging negligence.

A spokesperson for Related and Perez declined comment. A spokesperson for Plaza said the firm was just notified about the lawsuit. “We feel we have meritorious defenses against it,” she said. Plaza had no further comment, she added.

Executives for the six other defendants, including Sieger Suarez principal Charles Sieger and Ten Arquitectos owner Enrique Norten, did not respond to phone messages and emails seeking comment. An attorney for the condo association declined comment.

Since Related turned over control of the building in 2016 after it was completed, the condo association discovered a litany of design and structural defects, the lawsuit alleges. For instance, the association alleges it found deficiencies in the mechanical, electrical, plumbing and life-safety components of One Ocean. Specific damages include corrosion on sliding glass doors; cracked stucco, walls, ceilings, balconies and masonry; and deteriorated and defective balcony railings.

The association wants Related and the seven companies to pay for repairs to the building. Pérez, Related’s chairman and CEO, paid $4.2 million for the 3,528-square-foot penthouse on May 24, 2016. The top floor unit features a wrap-around terrace that overlooks the pool. He is currently asking $10.95 million for it, about 45 percent less than what he listed it for three years ago.

According to a Douglas Elliman’s first quarter sales report, 70 luxury condos sold in Miami Beach and the barrier islands, a 2.8 percent drop from the same period last year. Listings averaged 195 days on the market, a 41 percent increase compared to 2018’s first quarter.


Related Articles

arrow_forward_ios
Gil Dezer with a rendering of Porsche Design Tower and Residences by Armani/Casa (Credit: ARX via Madison Global)

Miami judge will rule if ex-Dezer COO is entitled to more than $10M in profits

Miami judge will rule if ex-Dezer COO is entitled to more than $10M in profits
citizenM founder Rattan Chadha, Russell Galbut and a rendering of 1212 Lincoln

CitizenM buys hotel portion of Crescent Heights’ 1212 Lincoln project

CitizenM buys hotel portion of Crescent Heights’ 1212 Lincoln project
Commissioner Ricky Arriola and an aerial of Sunset Harbour in Miami Beach (Compass)

Miami Beach moves toward banning chain restaurants and stores in Sunset Harbour

Miami Beach moves toward banning chain restaurants and stores in Sunset Harbour
Diane Von Furstenberg, Brookfield Properties Bruce Flatt, and the DVF store in the Shops at Merrick Park (Getty, Google Maps)

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park
1 Hotel South Beach (Credit: Google Maps)

Starwood Capital affiliate sues 1 Hotel & Homes South Beach condo association for trademark infringement

Starwood Capital affiliate sues 1 Hotel & Homes South Beach condo association for trademark infringement
David Martin, Rene Gonzalez and Glass 120 Ocean Drive (RGA, Google Maps)

Glass condo owners in South Beach sue Terra, architect and contractors, alleging construction defects

Glass condo owners in South Beach sue Terra, architect and contractors, alleging construction defects
Prive at Island Estates and BH3’s Charlie Phelan, Greg Freedman and Daniel Lebensohn and Gary Cohen

Privé at Island Estates developer sues Suffolk Construction over defects

Privé at Island Estates developer sues Suffolk Construction over defects
A Sunny Isles Beach landlord said a restaurant refused relief and vacated the property.

RK Centers alleges restaurant refused Covid relief, vacated property

RK Centers alleges restaurant refused Covid relief, vacated property
arrow_forward_ios

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

Loading...