UPDATED, Feb. 23, 6:50 p.m.:
Litigation over construction of the long-delayed, Estates at Acqualina in Sunny Isles Beach continues to escalate, as condo buyers who have not yet closed on their units are stuck waiting.
Suffolk Construction and the developer, Trump Group, are at odds over allegations of unpaid work, missed construction milestones, poaching employees and more. Though both settled their dueling lawsuits that were filed last year — Suffolk filed in the Southern District of Florida and Trump in Miami-Dade Circuit Court — they both reopened their lawsuits months after the May settlement.
This month, Suffolk filed an amended complaint, seeking an additional $5 million in allegedly unpaid work at the two-tower Estates condo project, for a total of $20 million. It also alleged that Trump tried to hire seven Suffolk employees, ranging from a junior project manager to a senior leader who has worked for Suffolk for more than a decade.
Trump, (not related to the former president) is seeking about $50 million in damages in its lawsuit against Suffolk.
Suffolk says the alleged poaching is a “calculated” attempt by the developer to intentionally “sabotage and undermine” Suffolk and construction progress at the project.
Jules Trump, who owns and heads Trump Group alongside his brother, Eddie, said the allegation is “illogical” and “counterintuitive.”
“It’s a real conspiracy theory, and it’s a backwards theory,” Trump said. “And it would cost me a fortune. It costs me every month this project is delayed.”
Trump said that he approached two employees who he heard were leaving Suffolk to work for another developer.
“There was no other case where I made an offer,” he said. “There are some very, very good people in the Suffolk team. It’s far more in our interest for them to be on Suffolk’s payroll rather than on my payroll.”
The developer’s original complaint states that the 154-unit, 49-story south tower was supposed to be completed in November 2020, and the 52-story, 94-unit north tower was supposed to be completed in February 2021, though marketing materials list earlier dates. Closings in the south tower began in June, records show. In November, the high-end Greek restaurant Avra Estiatorio Miami opened at the 45,000-square-foot amenities villa that sits between the two towers.
Suffolk, which has noted that it is the third general contractor to work on the project, says the $1.8 billion luxury condo development at 17901 Collins Avenue is now nearly completed. More than 130 closings out of 248 have been recorded since June, property records show. Buyers include Los Angeles Lakers player LeBron James and gunmaker Leslie Edelman.
The Estates marks the third Trump project in Sunny Isles, following the Mansions at Acqualina and the Acqualina hotel and condo tower. All are adjacent to each other.
In Trump Group’s lawsuit against Suffolk, buyer Kevin Starr this month sought a motion to intervene, which was denied by Miami-Dade Circuit Court Judge Alan Fine, court documents show. Starr’s attorney stated that he entered into a contract to buy his condo two years ago, with the expectation that it would be completed by the end of 2021.
Last year, Suffolk President Peter Tuffo and Suffolk CEO John Fish both promised his unit would be delivered by Dec. 14 of last year, the motion alleges. Based on those alleged promises, Starr planned to spend the holidays with his family at the unit and had ordered furniture to be delivered that month, according to the motion.
Suffolk shifts the blame to the Trump Group.
“It is obvious to us the owner is doing everything it can to discourage our people, interfere with our work, impede our progress and cash starve the project,” reads a cease and desist letter sent last week, signed by Suffolk’s regional general counsel, attorney Juan Diaz, and obtained by The Real Deal. Diaz wrote that the developer has refused to release more than $10.8 million in earned payments.
Suffolk alleges “years of abusive conduct” and a hostile work environment, and a “horrendous” administration of the project and the unit buyer punch list process. In response to the punch list allegation, Trump said that, “The reality is they are unwilling to meet our standard.”
Suffolk claims that the developer is creating delays by not providing specific plans for certain units, and by improperly communicating with subcontractors. Suffolk says Trump’s behavior “will not be tolerated.”
Suffolk is in litigation with other developers in South Florida, including Brightline and Shahab Karmely’s KAR Properties, court documents show. Suffolk sued an affiliate of KAR last summer, seeking at least $16 million in damages tied to allegedly unpaid work.
At the Estates, Trump said that by the developer’s definition, Suffolk is “zero percent completed” and has missed more than 20 delivery dates. He said that part of the money Suffolk is seeking is payment for meeting milestones — which he alleges Suffolk has not reached. He acknowledged that Trump Group has yet to reconcile outstanding change orders, but said many were submitted very late.
Both firms are persistent that they will not put up with each other’s alleged tactics.
“Despite having missed every one of those dates, they continue to claim that money, and come up with flimsy excuses,” Trump said. “Most developers would fold, pay them the money to get the hell out. But I’m not going to do that.”
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