Developer Hines sues insurance firms
Texas-based developer
which is being sued over alleged shoddy construction of an apartment complex in Disney’s Celebration community, has now sued its subcontractors and insurers for denying claims related to the ill-fated project.
Hines was the original developer and general contractor, through its subsidiary Urban Oaks Builders, for the 306-unit complex completed in 2016. It sold the asset later that year to
for $67 million, and within months Osceola County condemned all buildings in the community and forced tenants to evacuate.
Southstar filed suit in February, accusing the company and its affiliates of knowingly withholding, concealing and misrepresenting defective conditions at the apartment complex.
The countersuit, filed June 6, details the three insurance policies Hines carried for construction of the apartment complex and claims that all three insurers have denied claims related to the project and refused to pay for the company’s legal defense in the Southstar suit.
In the complaint, Hines attorney Mark Boyle wrote that Southstar has estimated the cost of repairs and damages at $45 million, a figure that is escalating every month by $451,000 due to the lost rent claim alone. that would provide affordable housing for the homeless and those suffering from mental illness.
Dubbed Warley Park, the 85-unit complex at 1500 W. 25th St. would be built with state and federal financial assistance through the
The housing agency awarded Wendover $1.51 million worth of 9 percent, Low Income Housing Tax Credits (LIHTCs), a $2.825 million State Apartment Incentive Loan (SAIL), and a $1.273 million National Housing Trust Fund grant.
In return for those fiand nancial incentives, Wendover has committed that no less than 50 percent of the units will go to chronically homeless people and/or to residents with a disabling condition, such as mental illness. On July 6, Orlandobased
paid $400,000 for 160 acres with a half-mile of frontage on Interstate 4 in Davenport. The property lies just outside the Four Corners Business Park, at the end of Home Run Boulevard bordering on the Green Swamp. Intram paid cash for the vacant land, which had previously been listed for $1.5 million, according to SVN Senior Advisor Ali Mushtaq, who represented the buyer.
The seller was an affiliate of Los Angeles-based
which acquired the property in 2013 through a foreclosure action. SVN advisor Ashley Bloom represented the seller, which was eager to divest.
“You’ve got three major issues with the property,” Bloom said. “You’ve got wetlands, plus you’ve got floodplain issues, and you’ve got conservation zoning because it’s right next to the Green Swamp.”
There has never been a formal wetlands determination study for the land. Bloom said a prospective buyer had a purchase contract last year but walked away from the deal after inspecting the property and seeing how wet it was.
Intram was willing to roll the dice. President Rashid Khatib said the firm bought the property as a long-term investment and ultimately hopes to develop it for industrial use.