Former La Quinta CEO sues Sabbia Beach development group over construction delays

Wayne Goldberg alleges the development group misled him on how many units were still unsold at the condo tower

Miami /
Aug.August 23, 2019 09:45 AM
Wayne Goldberg and a rendering of Sabbia Beach

Wayne Goldberg and a rendering of Sabbia Beach

In 2017, the former CEO of La Quinta Holdings plunked down a $1.87 million deposit to buy a penthouse at Sabbia Beach, a luxury condo development under construction in Pompano Beach with sweeping views of the Atlantic Ocean.

But two years later, the project at 730 North Ocean Boulevard is still not complete and the former hotel executive, Wayne Goldberg, is suing the development group Fernbrook Florida. He alleges the developer falsely induced him to purchase a condo for $5.35 million. He is now seeking to close on the penthouse and recover compensation for the harm he and his family have suffered.

The complaint filed this week in Broward County Circuit Court alleges that Fernbrook Florida falsely represented that only seven units at Sabbia Beach were still available at the condo development, driving up the sales price.

The developer “held units off the market in order to create the appearance that units were in high-demand and to inflate sales prices,” including the price of the penthouse, according to the complaint.

The suit also alleges that that the construction of all units was supposed to be finished by May 2018. The project, however, is still under construction, despite repeated reassurances it would be finished. When Goldberg visited the penthouse in November 2018 to do an inspection, he “observed multiple severe, material deviations from the agreement and its amendments,” according to the suit.

One of these alleged deviations included that his personal elevators were being installed in the wrong location. Instead of being near the front entry of the unit, it was in front of the “much-vaunted windows of the penthouse overlooking Pompano Beach.”

Fernbrook Florida is a joint venture between Concord, Ontario-based Fernbrook Homes, led by Danny Salvatore, and Grupo Fernandez. Fernbrook Homes did not immediately return a request for comment.

This week, Fernbrook Florida filed a lawsuit against the contractor, Verdex Construction, alleging that the project is delayed due to faulty work by the construction company. The development group alleges these delays have cost it at least $200,000 a month.

Verdex president Rex Kirby said in a statement, the company is unaware of the lawsuit and “therefore have no ability to comment until we are able to see what the issues are.”

The 19-story, 68-unit tower officially broke ground in May 2016. Condos were initially priced from $1 million to over $5.3 million. The units range in size from 1,850 square feet to 4,900 square feet, or an average of $685 per square foot.

Arquitectonica designed the Pompano Beach tower, which has interiors by Steven G. and tropical landscaping by ArquitectonicaGEO. Amenities include 200 feet of beach, an oceanside heated pool, fitness center, spa, 3,600-square-foot social room and 24-hour valet parking.

Instead of the typical 50 percent deposit required by the vast majority of South Florida pre-construction condos, Sabbia Beach required a 20 percent deposit, then another 15 percent at groundbreaking and the rest at closing.


Related Articles

arrow_forward_ios
Julie Jones (Getty)
Florida Luxurious Properties sues ex-partner Julie Jones over Elliman jump
Florida Luxurious Properties sues ex-partner Julie Jones over Elliman jump
From left: Monroe Capital’s Theodore Koenig, Steve Witkoff, HFZ's Ziel Feldman and Benny Shabtai with the Shore Club (Monroe, Witkoff, HFZ, Getty)
Judge awards $5M to Israeli mogul in HFZ lawsuit over failed Shore Club project in Miami Beach
Judge awards $5M to Israeli mogul in HFZ lawsuit over failed Shore Club project in Miami Beach
Carillon Miami Wellness Resort at 6801 Collins Avenue in Miami Beach (Google Maps, Getty)
Z Capital loses attempt to slap Miami Beach condo owners with $8M assessment
Z Capital loses attempt to slap Miami Beach condo owners with $8M assessment
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, Banyan Cay, Illustration by The Real Deal with Getty)
Developers of troubled West Palm resort project facing $61M foreclosure
Developers of troubled West Palm resort project facing $61M foreclosure
KAR Properties' Shahab Karmely and  Suffolk Construction's  Peter Tuffo with 2000 Ocean  (Suffolk, KAR, Getty)
Suffolk sues for $16M, alleging unpaid work at Shahab Karmely’s Hallandale Beach condo project
Suffolk sues for $16M, alleging unpaid work at Shahab Karmely’s Hallandale Beach condo project
From left: Witkoff’s Steve Witkoff and Monroe Capital’s Theodore Koenig with the Shore Club
Witkoff, Monroe sued over alleged “crooked and secretive land grab” of Shore Club in South Beach
Witkoff, Monroe sued over alleged “crooked and secretive land grab” of Shore Club in South Beach
Adeena Weiss Ortiz and map view of 4865 Northwest 7th Street in Miami (WeissOrtiz Law, Google Maps)
Caroline Weiss locked in legal conflict with daughter over $21M loan tied to massive Blue Lagoon development
Caroline Weiss locked in legal conflict with daughter over $21M loan tied to massive Blue Lagoon development
Miami-Dade County Mayor Daniella Levine Cava, Attorney
Miami-Dade may help renters in eviction court secure attorneys
Miami-Dade may help renters in eviction court secure attorneys
arrow_forward_ios

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

Loading...