Condo buyer sues Metropica developer over delays

Metropica and Joseph Kavana (Credit: iStock)

Metropica and Joseph Kavana (Credit: iStock)

Metropica has been pegged as a “city within a city” in western Broward County, a development that plans to span over 4 million square feet with more than 2,250 residential units overlooking the Florida Everglades.

But now, more than five years after launching sales for the first condo building at 2000 Metropica Way in Sunrise, called One Metropica, one couple is suing the development group over delays.

The buyers, Alvaro Juan Llosa and Olga Llosa, allege the unit was supposed to be completed by November 2019 under the terms of their contract and are seeking a refund of their $151,250 deposit, according to the complaint.

The Llosas put their deposit down for a $605,000 condo in the 28-story, 263-unit building in 2015, according to the suit. The couple wanted to be close to their grandchildren before “friends and cellphones become more of a priority,” the lawsuit alleges.

The couple alleges the contract requires that the unit be completed and delivered within three years after the estimated completion date of November 2016. So far, the building has not been completed.

Joseph Kavana of K Group Holdings, who is spearheading development of Metropica, called the lawsuit “groundless.”

“We are within the contract terms. We had some delays as it happens in any project,” Kavana said.

The lawsuit alleges that in August of last year, the development group said an electrical system serving multiple floors of the building sustained water damage and needed to be repaired.

In November 2019, the buyer’s attorney sent a notice of default to Metropica’s attorneys.

Kavana said the contract allows for the development group to have more time to complete the project if it runs into issues. He said the delays were caused mainly by infrastructure issues and also that its construction company and some subcontractors couldn’t deliver on time.

The project should receive its temporary certificate of occupancy by March, according to Kavana.

The Llosas want their deposit returned with earned interest. They are alleging breach of contract, unjust enrichment, and are seeking declaratory action.

In all, Metropica is $1.5 billion development that will include up to 485,000 square feet of retail space, 650,000 square feet of Class A office space, and public spaces in addition to the residential portion.

With units starting in the $450,000s, One Metropica is about 75 percent presold and the development group, according to Kavana.

On Collaborative by Coldwell Banker was tapped to take over sales and marketing of the building about a year ago, but Kavana recently brought sales in house. Kavana said the group is not planning to offer any incentives or discounts on remaining units to lure in buyers.

Next, the developer plans to launch sales for the second luxury residential tower this spring. Kavana hopes to complete the retail space by 2022. Construction will begin on 165,000 square feet of office space and a multifamily project in 2020.

Kavana is also seeking to fill the place of one major tenant, iPic after the movie theatre company declared bankruptcy in August. He said the group is in talks with two other movie theater companies to take its spot.

South Florida firm buys Sunrise apartment complex for $20.2M

Orstac Investment, which bought another Sunrise apartment complex last December, just paid about $158,000 per unit for Horizon Apartments

August 03, 2019 04:00PM

Horizons Apartments in Sunrise (Credit: ApartmentSearch.com)

A South Florida-based firm acquired a 128-unit apartment complex in Sunrise for $20.25 million.

Ortsac Investments paid about $158,000 per unit for Horizons Apartments at 4108 Pine Island Road.

Still Hunter, Chris Smiles and Kaya Suarez of brokerage firm CBRE represented the seller, Held, LP, which had owned the Sunrise rental property for the last 25 years.

“Horizons is an outstanding value-add investment with tremendous upside potential,” Hunter said in a prepared statement. “The lack of new supply and strong population growth in Sunrise have created a supply-demand imbalance, resulting in the strongest five-year rent projections of any submarket in Broward County.”

In a press release, CBRE stated that Horizons has “solid concrete construction and underutilized amenity spaces, spacious, well-laid-0ut floor plans and unique features such as storage lockers on every floor.”

Ortsac Investments acquired another apartment property in Sunrise late last year. In December, the firm paid $12 million, or about $167,000 per unit, for the 72-unit Heritage Green Residences at 8445-8481 Springtree Drive. – Mike Seemuth

AC Hotel next to Sawgrass Mills nabs $29M construction loan

It will be the first new hotel built in Sunrise in at least 15 years

AC Hotels in Sunrise

AC Hotels in Sunrise

One of South Florida’s busiest malls is about to get a new hotel.

Simon Property Group and Norwich Partners scored a $28.5 million loan from Wells Fargo to build an eight-story, 170-room hotel next to the Sawgrass Mills outlet mall in Sunrise. The hotel will be part of the AC Hotels by Marriott brand.

The hotel will be built at 1870 Sawgrass Mills Circle, records show. The project was approved in July 2017 by the Sunrise City Commission.

It will be the first new hotel built in Sunrise in at least 15 years.

Sawgrass Mills, owned by Simon Property Group, is one of the most valuable malls owned by real estate investment trusts in the country. According to a report last year, the mall brings in $1,149 per square foot and is worth $4.1 billion.

AC Hotels was founded in Spain. In 2011 Marriott International and AC Hotels formed a joint venture to launch AC Hotels by Marriott. The Spanish-style brand is known for its sleek designs and artwork in its hotels, which are geared toward millennial customers, according to its website. It has locations in Miami Beach, Aventura and Miami, and a new one is planned for Fort Lauderdale.

Miami-based Key International recently scored a $43 million construction loan to the Fort Lauderdale hotel.

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Sunrise shopping center may shrink to make way for apartments

Ashley Bosch, director of development at Rilea Group
A developer wants to tear down part a Sunrise shopping center and build an apartment complex in its place.
 
Ashley Bosch, director of development at Miami-based Rilea Group, told the Sun-Sentinel the project would be “a very good marriage” of retail and residential properties.
 
Rilea Group’s planned project would replace part of the Village Shoppes of Pine Plaza at the corner of Pine Island Road and Northwest 44 Street with a 288-unit apartment complex.
 
A brick paver walkway would connect the apartments to the movie theater, stores and restaurants at the 24-acre shopping center, owned by Global Fund Investments.
 
The Sunrise City Commission is expected to vote Nov. 14 on the proposed project.
 
The Sun-Sentinel reported that the proposed Sunrise project may be among the first in Broward County to shrink a shopping center to clear space for rental apartments.
 
Jesse Saginor, a Florida Atlantic University professor who specializes in development trends, told the newspaper the proposed multifamily housing development could be the first of many that address a shortage of developable land by building rentals at retail centers with high vacancy rates.
 
The Village Shoppes of Pine Plaza lost an anchor tenant in June when Winn-Dixie closed its supermarket there.
 
If Rilea Group wins city approval of its proposed project, construction could start late next year and be finished by the middle of 2020. [Sun-Sentinel] — Mike Seemuth

Source: The Real Deal Miami