Home News Z Capital Loses Push for $7.7M Fee on Carillon Condo Owners

Z Capital Loses Push for $7.7M Fee on Carillon Condo Owners

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Carillon Miami Wellness Resort at 6801 Collins Avenue Miami Beach (Google Maps, Getty)

Z Capital Group has lost an attempt to impose a $7.7 million valuation on the owners of condominium units at the Carillon Miami Wellness Resort.

The result is the latest in an ongoing legal battle between the North, South and Central Tower Associations and Z Capital affiliate Carillon Hotels. The Ocean Front Complex is located at 6801 Collins Avenue. miami beach.

Z Capital owns a spa in the central tower and about 70 condominium hotel units, the order said. According to lawyers representing one of the associations, it is the only of the three towers to have separate condominium units and to allow owners to put condominiums in hotel pools. In , this ownership gives Carillon Hotel control over the majority of common areas such as corridors, elevators, pools and gyms in all towers, and gives unit owners an appreciation for maintenance, operation and management. be given the right to impose Insurance for these shared facilities.

At the heart of litigation is this level of control and valuation.Association sued The case is now in its eighth year, having indicted Carillon Hotel in 2016. Z Capital claims in court that it has created an internationally recognized wellness resort since purchasing the hotel keys and spa. bankruptcy court 2015.

In the latest chapter of the lawsuit, Z Capital, through Carillon Hotel, sought to collect an assessment of $7.7 million to cover attorneys’ fees and costs incurred in litigation since 2017. is a privately held merchant bank with a $5.2 billion portfolio that includes Affinity Gaming, Alchemy Wellness Resorts and Mrs. Fields.

On Monday, Miami-Dade Circuit Judge Michael Handsman sided with the Condo Association and called the valuation push “bold.” The charges were illegal and violated the Master’s Declaration, which outlines the campus’s governing structure, the judge wrote in the order.

As this was a temporary ban on assessment, Handsman ordered the association to pay a bond of $712,000 in case his ruling was overturned.

The order could set the stage for decisions on broader issues relating to the management of condominium hotel common areas. Handsman wrote that he intended to “expeditiously address the legitimacy of the structures governing shared campuses.” It’s the amenities, such as restaurants, that benefit the Carillon Hotel, Handsman said.

“The Carillon Hotel has no right to claim the defendant’s costs from anyone. [Carillon Hotel] A profit-seeking hotel venture,” he wrote.

A lawyer for Carillon Hotel did not respond to a request for comment. During the course of the lawsuit, it counter-sued the Condominium Association, claiming that the entire lawsuit was actually a ruse by the Association to reverse its purchase of the Carillon Hotel resort in bankruptcy court and take ownership and control for themselves. It also alleges that the association could not have sued unless the Carillon Hotel violated the valuation cap.

In two letters sent to the room owners in late July after Handsman issued the verbal order at the hearing, Carillon Hotel said it plans to appeal. Not guilty,” he said, adding that he was eager for a trial, which could take place in the fall.

Its chief financial officer said in court in July that he has the right to impose an evaluation for maintaining and operating the shared facilities, and that residents have a say in how the shared facilities operate, pursuant to a judge’s order. He testified that he did not have a

Gene Stearns, a lawyer for the association, argues otherwise. The association needs to elect a board of directors that will have a say in the maintenance and operation of the facility, said Stearns of Miami-based Stearns, Weaver, Miller, Weisler, Alhadev & Sitterson. said Mr.

Z Capital cannot be “a dictator, an authoritarian ruler over the Master Association that controls all three buildings,” Stearns added.
South Florida condo market analyst Peter Zarevski said this is a common problem for condo hotels. This is because condominium hotels typically give decision-making power to hotel owners rather than unit owners.

“Corporate investors like this type of structure because of the subsidies,” said Zarevski of Condo Vultures, referring to unit owner valuations. “It’s not officially called a subsidy, but it’s something like that.”

In a similar case, the One Bal Harbor Condominium Hotel Association claimed that the condominium association changed its declaration to reduce its own costs for shared utilities, parking and access to beach services.lawsuit Settlement this year.

“Corporate investors in condo hotel owners are essentially wasting cash and allowing individual unit owners to owe debt,” said Zalewski.

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