A year after completing Villa Valencia in Coral Gables, Location Ventures failed to secure a final certificate of occupancy for the 13-story boutique condominium. And since last month, 10 contractors, including project manager Winmar Construction, have filed 23 construction liens totaling nearly $7 million against the building’s development entity, records show.
It’s the latest batch of trouble for the beleaguered Coral Gables-based development firm previously led by Rishi Kapoor, a once rising star in South Florida’s real estate scene who’s now a target of local and federal investigations examining his management of Location Ventures.
Kapoor resigned last month as CEO and former Miami-Dade Judge Alan Fine took over as the company’s manager. Investors who bankrolled Location Ventures gave Fine a mandate to liquidate the firm’s assets to pay back creditors without having to file for bankruptcy protection.
The city of Coral Gables recently extended a temporary certificate of occupancy for Villa Valencia, a 39-unit mid-rise that generated more than $100 million in closings. The developer hasn’t completed minor punch list items and some public infrastructure components, such as a new drain, pedestrian traffic signals and underground electrical lines, according to city manager Peter Iglesias.
Villa Valencia owners raise concerns
On Tuesday, Iglesias briefed the Coral Gables City Commission about the Villa Valencia situation during the elected body’s regular meeting. The discussion was brought up by Coral Gables Commissioner Ariel Fernandez, who told The Real Deal he received calls from Villa Valencia unit owners who are concerned the building still doesn’t have a final certificate of occupancy.
“It’s really an unfortunate situation,” Fernandez said. “The developer is nowhere in sight to take care of this. It puts the city in a tough spot to get this done.”
Coral Gables Mayor Vince Lago abstained from the discussion and walked off the dais. Lago explained that he could not participate since a Location Ventures entity leases a storefront inside a building in the city that he partially owns, according to video of the city commission meeting.
“I have to recuse myself,” Lago told his colleagues. “The owner of this project is a tenant of mine.”
Unit owners can still reside at Villa Valencia during the extension of the temporary certificate of occupancy, and the city can use funds from a construction bond posted by Location Ventures to pay for the unfinished work, Iglesias informed city commissioners. He also said contractors are willing to complete the punch list items and public infrastructure components.
“We will not release the funds until those are done,” Iglesias said. “These are not building safety issues.”
City Attorney Christina Suárez told city commissioners that she and her staff met with Fine, who relayed Location Ventures has a “cash flow issue,” and that he is onboard with the city utilizing the construction bond to pay for the uncompleted work. Fine did not immediately respond to a request for comment.
Contractors claim nonpayment for work
Meanwhile, between July 3 and Aug. 2, 10 companies that performed construction work at Villa Valencia filed 23 liens claiming nonpayment of a combined $6.9 million.
Winmar Construction, the Miami-based general contractor managing Villa Valencia’s construction, represented the largest claim; filing three liens totalling $5.6 million, records show.
Miami-based millwork manufacturer AWM Group had the second biggest claim, filing two liens for a combined $730,189.
The smallest claim was filed by Pronto Waste Services, a Miami-based construction dumpster provider. Pronto’s lien is for $5,904.
On other fronts, lenders are suing Location Ventures entities for allegedly not paying back a combined $17 million in mortgages tied to co-living projects in Coral Gables and Miami Beach. The firm is also being sued by investors of a Coconut Grove co-living project, as well as a married couple that placed $45 million in Location Ventures and two projects.