Paseo de la Riviera is facing at least 14 active and unpaid construction liens from subcontractors and suppliers. As of October 14, 2020, the liens against the mixed-use development in Coral Gables, Florida. total $4.8 million.
While the property’s 245-room Thesis Hotel Miami recently opened for business in August, 13 different contractors are still owed millions for their work following the construction of the 725,000-square-foot development, which was that was completed during the coronavirus pandemic.
According to the lien affidavits, 10 of the unpaid construction work claims were filed against the project’s general contractor, Balfour Beatty. The lien claims also list 1350 S. Dixie, LLC as the property owner, a subsidiary of Nolan Reynolds International.
The construction claims, known as mechanics liens, were filed for unpaid work at the Paseo de la Riviera property dating back to December of 2019. The liens were processed with the Miami-Dade County clerk’s office.
A mechanics lien is utilized by unpaid contractors to gain a security interest in the serviced property by preventing its sale or refinancing. Once the contractor’s debt has been satisfied, the lien claim can be removed from the property title.
All 14 mechanics lien claims were filed under Florida’s statutes governing mechanics liens.
13 contractors owed $4.8M from Paseo de la Riviera
A total of 13 different contractors are owed a combined $4,825,730.89 via 14 separate mechanics lien claims following the construction of Paseo de la Riviera, located at 1350 S. Dixie Highway, Coral Gables, Fla. General contractor Balfour Beatty currently owes $4,512,324.95 of that total in unpaid construction work to nine different contractors.
On September 18, 2020, subcontractor Thyssenkrupp Elevator Corporation filed their first of two mechanics liens against the GC. Following their second lien filing on October 8th, the subcontractor is now owed a combined $1,213,456.14 from Balfour Beatty. Thyssenkrupp Elevator Corporation’s latest lien affidavit states the subcontractor serviced the project between February of 2018 and September 2020.
Beyond the two claims filed by Thyssenkrupp Elevator Corporation, subcontractor L&R Structural Corp. has filed a lien against Balfour Beatty and the property, claiming $912,265.08 on April 16, 2020.
The subcontractor was hired for structural construction by Balfour Beatty with an original contract price of $29.3 million, beginning in February 2018 and ending in January 2020.
Vico Painting Contractors, LLC filed the third-largest unpaid work claim against the property on September 17th. The subcontractor’s mechanics lien states Balfour Beatty allegedly owes $774,485.49 in construction work pursuant to a contract set at $2,013,960.68. Vico Painting Contractors serviced the Paseo de la Riviera project between April 2019 and August 2020.
$225 million Paseo de la Riviera completed during pandemic
After five years of planning and construction, the finishing touches of the Paseo de la Riviera were completed in August 2020.
Developer Nolan Reynolds International’s $225 million Paseo de la Riviera is now fully equipped with 204 apartment units, 245 hotel rooms, and two restaurants.
The property also houses 30,000 square feet of retail space located within the group floor, with 640 added parking spaces.
According to an article from The Real Deal, the apartment component of the Paseo de la Riviera was 63% leased by mid-August of 2020 despite any effects of the coronavirus pandemic.
As of October 19, Florida’s total coronavirus cases reached 756,727. Miami-Dade County is experiencing 178,726 confirmed cases of the virus.
Miami construction disputes surge following COVID-19 outbreak
As Florida COVID-19 numbers steadily rose throughout the life of the pandemic, construction disputes surged in South Florida.
Between January and June of 2020, contractors were owed a combined $223 million from over 1,800 mechanics lien claims filed in Miami-Dade County.
In April, roughly a month into the coronavirus pandemic, shutdowns stretching across Florida and the entire country caused construction starts to drop 33 percent.