Just months after the condo association of the Missoni Baia tower in Miami sued an affiliate of OKO Group alleging construction defects, the developer has filed a suit of its own hoping to force its insurers to pay $22M to help cover repairs.
Construction of the Missoni Baia at 777 NE 26th Terrace in Miami’s Edgewater neighborhood finished in 2023.
An entity tied to OKO Group, led by billionaire Vlad Doronin, is suing four different insurers after claiming they only covered some of its losses, which totaled more than $55M, following issues found during construction and project delays.
The developer says it is owed more than $22M in unpaid claims tied to the Edgewater building, according to a lawsuit filed in Miami federal court last week.
Zurich American Insurance, one of the insurers named in the suit, declined to comment. The remaining insurers named — Allianz Global Risks U.S. Insurance, ACE American Insurance and National Fire Marine Insurance — did not respond to requests for comment.
Construction on the luxury Italian fashion-branded, 246-unit tower at 777 NE 26th Terrace began in 2019 with a $243.3M construction loan, according to The Real Deal, which first reported the suit.
But construction, which wrapped up in 2023 before residents moved in the following year, was a bumpy ride, according to the suit.
OKO Group, which developed the project with Cain, claims the luxury condo tower settled unevenly in 2021, causing direct damage to the property during construction.
This led to an at-least-16-month delay in receiving a temporary certificate of occupancy for the project, which in turn meant lost time and revenue on unit sales and extra project costs, according to the suit.
The suit states each insurer was responsible for 25% of any covered loss — but when OKO began submitting damage claims totaling nearly $56M in 2023, the insurers only paid out $34M.
The developer is claiming it is entitled to the remaining amount because it gave adequate time, submitted the necessary documents and complied with all of the requirements set within the policies.
The lawsuit comes as OKO is warding off a legal challenge from residents of the building, which features one- to five-bedroom units sold for as much as $9M.
The condo association of the 57-story tower sued the developer and 21 subcontractor and architecture firms that built the tower over cracks in floor slabs, foundation and columns and water intrusion in units, mechanical rooms, stairwells and the parking garage. The suit also alleges that parts of the tower lack hot water and have nonfunctioning elevators.
The 700 Edgewater Condominium Association accused OKO Group of not correcting construction issues identified by its own consultants and alleges that the firm deviated from plans during its build-out, like not providing furniture, finishes and decorations.
OKO Group is also facing another suit from investors in a delayed Fort Lauderdale project, who claim that despite assurances that a luxury condo project would deliver in September 2024, construction never began.
Doronin has become one of Miami’s most prominent developers after he and Cain developed the 830 Brickell office tower, which landed tenants like Citadel and Microsoft and shattered Miami office rent records.
More recently, OKO partnered with Oak Row Equities in December to purchase a Brickell assemblage for $520M in Florida’s largest-ever land deal. The developers plan an “ultra luxury destination” with residential and hospitality uses. While no site plans have been released, the site can accommodate up to 3M SF and towers as high as 1,049 feet.