St. Regis Bal Harbour Condo Association Files Lawsuit Alleging Building Defects and Mismanagement
November 8, 2024
The condo association at the St. Regis Bal Harbour Residences has filed a lawsuit against the property’s owners and managers, citing numerous building defects, health and safety concerns, and alleged financial mismanagement. The lawsuit, filed this week in Miami-Dade Circuit Court, accuses Al Rayyan Tourism Investment Company (ARTIC), its affiliate Seldar Miami Holding LLC, and executives Tarek El Sayed and Gregory Polino of failing to maintain the property and protect residents.
The suit lists issues such as mold growth, corrosion, flooding, and exposed wiring. The Bal Harbour North South Condominium Association claims these problems have contributed to a significant decline in the property’s value, causing concerns for current condo owners.
ARTIC, a Qatari-owned firm, acquired the St. Regis Bal Harbour in 2014 for $213 million from Starwood Hotels & Resorts Worldwide. Built in 2011, the luxury condo-hotel complex comprises three 27-story towers housing 192 hotel rooms and 205 condo units. ARTIC later refinanced the property for $188 million in 2021, when the resort was valued at $331 million.
Despite the property’s reputation as a prestigious branded residence, attorney Juan Morillo, representing the condo association, asserts that these conditions negatively impact property values.
The lawsuit alleges severe structural and safety deficiencies, including malfunctioning mechanical, electrical, and emergency systems, flooded emergency exit paths, toxic chemical storage issues, and “pervasive” mold. The complaint also notes a temporary post, reportedly over a year old, propping up the parking garage to prevent potential collapse.
The condo association seeks a comprehensive, court-approved building assessment and demands immediate remediation of the identified issues. According to Morillo, the estimated cost of these repairs could run into the tens of millions.
Beyond structural issues, the association claims that ARTIC and its representatives have mishandled maintenance funds, blocking unit owners from auditing accounts. Additionally, it alleges ARTIC managers diverted $1.5 million intended for maintenance to renovate the lobby restaurant, La Gourmandise, instead.
Morillo described the situation as “shocking” and criticized ARTIC’s management as subpar, failing to meet basic building code standards. ARTIC has not publicly responded to the lawsuit or the association’s accusations.
