Defunct Facchina sues to collect $4.3M for MiamiCentral office building work

Construction firm went out of business while building the 10-story and 12-story mixed-use buildings

Miami /
Aug.August 09, 2019 02:30 PM
 2 MiamiCentral and 3 MiamiCentral

2 MiamiCentral and 3 MiamiCentral

When Shorenstein Properties purchased 2 MiamiCentral and 3 MiamiCentral in May for $159.4 million, the San Francisco REIT also allegedly inherited millions of dollars in construction debt from the previous owner. Florida East Coast Industries, the parent company of VirginTrains USA, sold the buildings at 600 Northwest First Avenue to Shorenstein.

Last month, Facchina Construction of Florida, the project’s now-defunct general contractor, sued the Shorenstein affiliate that now owns the buildings for nonpayment of $4.3 million in construction work that was allegedly completed in 2016.

According to Facchina’s complaint, Florida East Coast’s then-subsidiary All Aboard Florida refused to pay the bill. Facchina was hired in 2015 to construct the mixed-used buildings that include a total of 595,145 square feet of office, retail, and parking. In 2018, the firm filed a lien for the unpaid amount and is still trying to collect, the lawsuit states.

Spokespersons for Shorenstein and Florida East Coast declined comment. Mariela Malfeld, Facchina’s attorney, did not respond to a phone message seeking comment.

Alex Barthet, a Miami-based construction lawyer not involved in the litigation, said the lien is not extinguished by the sale. But to keep the lien alive, Facchina had to file its lawsuit. “This is the real power of a construction claim of lien and what gives contractors financial security for their work,” Barthet said. “The Facchina liens were filed almost exactly one year ago, so it is likely that this lawsuit was filed to prevent the claims of lien from being extinguished.”

Previously, Miami-based Estate Shell, a subcontractor on the 3 MiamiCentral garage portion, sued Facchina, All Aboard and Balfour Beatty in 2017 over a $3 million dispute, according to the Orlando Sentinel. Miami-Dade Circuit Court records show the lawsuit was stayed and went to arbitration. However, Estate Shell is seeking to overturn the arbitrator’s final judgment according to a motion filed in late July. Facchina went out of business while working on the project.

Since 3 MiamiCentral and 2 MiamiCentral opened last year, the tenant roster includes Viacom, the Confederation of North Central America and Caribbean Association Football (CONCACAF), Carlton Fields and Atlantic | Pacific Companies. Shorenstein financed the purchase with a $126 million loan from Wells Fargo. Not included in the purchase: the train station for the high-speed rail service formerly called Brightline and now Virgin Trains USA.


Related Articles

arrow_forward_ios
A photo illustration of Brickell City Centre (Illustration by Kevin Rebong for The Real Deal)
Brickell City Centre developer sues Arquitectonica, contractors over alleged defects
Brickell City Centre developer sues Arquitectonica, contractors over alleged defects
Fisher Island (Wikipedia Commons, iStock)
Fisher Island homeowners sue to recover more than $11 million in allegedly “unlawful” assessments
Fisher Island homeowners sue to recover more than $11 million in allegedly “unlawful” assessments
(The Tides South Beach via Facebook)
Chetrit’s Tides hotel on Ocean Drive faces $45M foreclosure lawsuit
Chetrit’s Tides hotel on Ocean Drive faces $45M foreclosure lawsuit
Jonathon Yormak and New World Tower at 100 Biscayne Boulevard (Google Maps)
Australian investors sue East End Capital over downtown Miami office building
Australian investors sue East End Capital over downtown Miami office building
Thor Chairman Joe Sitt, Stefano Ricci CEO Niccolo Ricci and the Miami store. (Getty, Thor, Miami Design District)
Thor Equities sued over alleged unpaid loan on Stefano Ricci Miami Design District store
Thor Equities sued over alleged unpaid loan on Stefano Ricci Miami Design District store
Gil Dezer and renderings of the project (Renderings via Zyscovich Architects)
Neighbors sue to overturn approval of Dezer’s mega project in North Miami Beach
Neighbors sue to overturn approval of Dezer’s mega project in North Miami Beach
Blackstone's Jon Gray and 2MiamiCentral (Getty)
Blackstone inks lease at MiamiCentral in downtown Miami
Blackstone inks lease at MiamiCentral in downtown Miami
Jeffrey Soffer and Turnberry Isle Yacht and Racquet Club
Turnberry Isle condo association sues Jeffrey Soffer affiliate over lobby repairs
Turnberry Isle condo association sues Jeffrey Soffer affiliate over lobby repairs
arrow_forward_ios

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

Loading...