The Trump Organization terminated its contract with Suffolk Construction Company for Acqualina Estates, a two-tower luxury condo development in Sunny Isles Beach, real deal Already learned.
Suffolk’s last day on the site was Thursday, June 29, according to an email from developer Jules Trump to residents and prospective residents of the project. The 248-unit residential development at 17901 Collins Avenue has recorded at least 176 sales. Buyers include NBA superstar LeBron James.
“The decision to terminate Suffolk was not made in a hurry or overnight,” Trump wrote in a letter to residents.
The developer and Suffolk County have been locked in litigation for more than a year over delays, payments, quality of work, construction labor and more. Three years ago, Suffolk signed a $129.5 million contract to develop the project’s north tower. It succeeds Coastal Construction, which in 2018 signed a $600 million contract with the developer to build the entire project.
Trump affiliate A3 Development sued Suffolk in February 2022, and Suffolk countersued the following month. The two parties reached a settlement last May, but Suffolk County reopened its lawsuit against the Trump Organization affiliate in the fall.
In an email sent by the developer last week, Trump wrote that the project’s ownership “is making a strong plea to Suffolk County to address its deficiencies when project delays are imminent and unresolved.”
A spokesman for Suffolk said the county had not been paid wages for more than six months and while it was “very proud” of its work and commitment to completing the estate, “no one should be expected to Work for free.”
“Only a fraction of their claims have any legitimacy,” Jules Trump said. Trump (no relation to the former president) added that his company has been paying all subcontractors directly. “We are paying them far more than what they have amassed through legal charges,” he said.
A Suffolk spokesman said the company looked forward to “pursuing appropriate remedies in court”.
The Estates’ first tower is expected to be completed in August 2021, with delivery in summer 2022. The second tower is expected to be completed in February 2022 and is still under construction.
The hotel’s anchor restaurant, Avra Miami, opened in November. It’s unclear if the 45,000-square-foot amenity villa, located between the two towers, is complete. The late fashion and design icon Karl Lagerfeld designed the development’s lobby.
Delays caused by supply chain and labor issues have become more common, but the feud between Suffolk County and the Trump Organization has escalated beyond typical pandemic-related challenges. Suffolk has said in the past that this is the third general contractor involved in the project, after Moss Construction and Coastal Construction. Suffolk cited a lawsuit brought against the developer by the Coastal District, which was settled last year.
Suffolk has been involved in litigation for other projects in South Florida in recent years. A year ago, the company sued a KAR Properties affiliate seeking at least $16 million in damages for alleged unpaid work. In 2020, Aventura’s Privé developer sued Suffolk County over alleged deficiencies and delays in a luxury condo project.
After terminating the contract with Suffolk last month, Trump notified the project’s guarantor, which acts like insurance. Typically, the surety conducts an investigation to determine whether the general contractor violated its agreement with the developer, said Jordan Nadel, a construction attorney at Mark Migdal & Hayden.
Nader, who was not involved in the project, said that if the guarantor determined that Suffolk was in default, it could pursue different options under its contract. The guarantor may pay the new contractor an amount for taking over, or pay the developer the amount covered by the bond.
“There are so many moving parts, so many parties, so many stakeholders,” Nadel said. “Every step of the process is complex.”
