St. Regis Bal Harbour Residences condo association is suing the property’s owners and managers, alleging building defects, health and safety issues and financial mismanagement.
Mold, corrosion, flooding and exposed wiring are just a few of the defects alleged in the lawsuit filed this week in Miami-Dade Circuit Court by the Bal Harbour North South Condominium Association against the Qatari firm Al Rayyan Tourism Investment Company (ARTIC), its affiliate Seldar Miami Holding LLC, and executives Tarek El Sayed and Gregory Polino, according to the filing.
ARTIC bought the St. Regis Bal Harbour condo-hotel at 9703 Collins Avenue from Starwood Hotels & Resorts Worldwide for $213 million in 2014. The complex was completed in 2011 and includes three 27-story towers with 192 hotel keys and 205 condos. In 2021, ARTIC refinanced the property for $188 million, valuing the resort at $331 million.
The project was an early feature in the branded residences trend that has boomed in South Florida, in part because of buyers’ confidence in luxury names. Yet, according to the condo association’s attorney, Juan Morillo, condos are depreciating in value because of the building conditions.
ARTIC did not respond to requests for comment on the suit. As of Tuesday evening, the firm had yet to respond to the suit, Morillo confirmed.
ARTIC is helmed by Sheikh Faisal Bin Qassim Al Thani, a member of Qatar’s ruling Al Thani family. In April, ARTIC entered a contract to sell the 50-story, 148-key W Hotel in Miami’s Brickell for an undisclosed price, after buying it in 2016 for $64.5 million.
The St. Regis Bal Harbour condo association is seeking an immediate comprehensive assessment of the building and remediation for a laundry list of alleged issues in the complex, according to the suit. Alleged issues include failing mechanical, electrical, and emergency systems; flooded emergency egress paths; exposed electrical wiring; toxic chemicals stored unsafely; “pervasive” mold colonies; and a year-old temporary post meant to prevent the parking garage from collapse.
It will be up to the court to approve the assessment and repairs. “Their initial, very preliminary assessment is that this will cost in the tens of millions of dollars,” said Morrillo, a partner at Quinn Emanuel Urquhart & Sullivan.
In addition to alleged neglect of the structures, the condo owners allege ARTIC and its representatives have mismanaged the association fees set aside for maintenance. According to the complaint, unit owners have been barred from auditing the accounts. They also allege ARTIC managers diverted $1.5 million in funds for a remodel of the hotel’s lobby restaurant, La Gourmandise.
“It’s quite shocking,” Morillo said. “This is substandard with respect to any kind of code that would govern any kind of building.”