Aston Martin Residences’ construction is resuming after a subcontractor working on the downtown Miami luxury condo tower reached an agreement with the general contractor.
Edgewater Construction, a Miami-based stucco and drywall company, filed for Chapter 11 bankruptcy in March, creating a two-month delay for the project at 300 Biscayne Boulevard Way.
Cost increases tied to inflation were at the root of Edgewater Construction’s financial problems, the South Florida Business Journal reported. The subcontractor’s attorney, Jacqueline Calderin, said the company had to eat the higher costs because of its original contract with Coastal Construction from early 2019.
G and G Business Development, owned by the Coto family of Argentina, broke ground on the nearly 400-unit, 50-story tower in 2017, and it was expected to be completed last year. A spokesperson for Aston Martin told the newspaper the tower is nearly sold out and is set to be completed by the end of this year.
Edgewater Construction was working on six developments when it filed for bankruptcy, including Estates at Acqualina in Sunny Isles Beach, AMLI Wynwood, Society Wynwood, Bayshore Grove and a project in Tampa. It’s unclear whether it will return to work on the other South Florida sites, where it had agreements with the general contractors. Edgewater will not continue to work for Coastal on the Tampa development, according to Edgewater’s attorney.
A number of costs have risen dramatically over the past three years for developers, including land, construction materials, labor, insurance and financing. That, coupled with supply chain delays and other factors, have made it more challenging for developers to start and complete their projects.
— Katherine Kallergis
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South Florida
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