Codina Partners affiliate allegedly owes $3.6M for Downtown Doral condo construction: lawsuit
Last month, the developer paid off a $32M construction loan for the 20-story luxury tower
UPDATED, Aug. 5, 2:40 p.m.: A Codina Partners affiliate allegedly won’t pay a Fort Lauderdale construction firm for $3.6 million after completing 5350 Park, the developer’s latest condo project in Downtown Doral, according to a recently filed lawsuit.
Grycon LLC is suing 5350 Park LLC and the project’s surety bond provider Arch Insurance Company in Miami-Dade Circuit Court for breach of contract. According to the complaint, Grycon hasn’t been paid for $3.1 million in construction services and $500,000 in bonuses for achieving completion milestones.
In February, the 20-story, 238-unit tower and attached garage were substantially completed, and buyers began closing on 5350 Park condos, the lawsuit states.
“When it came time to pay us and settle up, [the developer] has come up with excuse after excuse,” said Stuart Sobel, a Siegfried Rivera shareholder representing Grycon. “They have played it very heavy-handed.”
A spokesperson for Codina Partners, headed by Executive Chairman Armando Codina and CEO Ana-Marie Codina Barlick, said the company doesn’t comment on pending litigation. But 5350 Park has filed a motion to dismiss Grycon’s lawsuit, claiming the construction firm owes the developer liquidated damages for construction delays.
After publication, Felix X. Rodriguez, legal counsel for Codina Partners said that Grycon fell woefully short of its obligations and was duly terminated from the project. “Thereafter, Grycon filed its lawsuit in an attempt to distract from its failure to complete the project in accordance with its construction contract and avoid liability for numerous construction deficiencies,” Rodriguez said in a statement. “Accordingly, Codina Partners intends to enforce its rights under the construction agreement and vigorously pursue all remedies afforded by law.”
Nicholas Siegfried, Sobel’s law firm partner who is also representing Grycon, denied his client delayed the Downtown Doral condo project. According to the lawsuit, Grycon completed 5350 Park on time, securing a final certificate of occupancy by March 1 as required by its contract.
“They terminated us when [5350 Park] got its final certificate of occupancy,” Siegfried said. “We found that odd since we had completed the project…They have been selling units and closing. It’s mind-boggling to withhold this money.”
In a July 6 press release, Codina Partners said it had paid off a $32 million construction loan for 5350 Park, the third condo project at Downtown Doral, a mixed-use development spanning 250 acres. The press release also states the luxury tower is more than 92 percent sold.
Designed by Cohen, Freedman, Encinosa & Associates and featuring interiors by Giorgio Ferrara, 5350 Park features studios to three-bedroom condos priced between $200,000 and $500,000-plus. Amenities include a resort-style pool with private cabanas, a state-of-the-art gym overlooking Downtown Doral Park and a dedicated massage parlor and sauna.