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

TRD 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
Joseph Milton and Parque Towers

Parque Towers developer faces lawsuit seeking class action over allegedly mismarketed condos

Parque Towers developer faces lawsuit seeking class action over allegedly mismarketed condos
Remy Jacobson, Jean-Marc Jacobson, 4141 North Miami Avenue (Credit: Google Maps and REALTOKEN)

Remy Jacobson allegedly in default on Design District loan: lawsuit

Remy Jacobson allegedly in default on Design District loan: lawsuit
Rendering of GPI Real Estate Group’s Infinity, a previously planned 15-story mixed-use project

Developer of nixed Sunny Isles Beach project seeks return of $5M advance: lawsuit

Developer of nixed Sunny Isles Beach project seeks return of $5M advance: lawsuit
Virgin Trains (Credit: iStock)

All aboard? Miami-Dade to start discussions with Virgin Trains over major expansion

All aboard? Miami-Dade to start discussions with Virgin Trains over major expansion
Jeff Berkowitz, developer of Dadeland Station and Aventura Commons

Berkowitz sues to evict PetSmart from Dadeland Station and Aventura Commons

Berkowitz sues to evict PetSmart from Dadeland Station and Aventura Commons
Richard Branson (Credit: Virgin, Cindy Ord/Getty Images)

Virgin Trains seeks $350M to build five stations in Miami-Dade

Virgin Trains seeks $350M to build five stations in Miami-Dade
Seritage Growth Properties stopped construction at Esplanade at Aventura because of the pandemic, and now Mexican restaurant Carolo wants to break its lease.

Esplanade at Aventura work stoppage leads to lawsuit by Mexican restaurant

Esplanade at Aventura work stoppage leads to lawsuit by Mexican restaurant
Stephen Gravett, CEO of Kennedy Homes and a rendering of Trevi Isle home community

Kennedy Homes sells Palm Beach Gardens community amid allegations of mismanagement

Kennedy Homes sells Palm Beach Gardens community amid allegations of mismanagement
arrow_forward_ios

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

Loading...