Billionaire Sues Sapir Over Alleged Construction Defects

The billionaire owner of a penthouse at Arte, an oceanfront luxury condo building in Surfside, is suing the developer over alleged construction defects.

The suit adds to mounting litigation by unit owners.

Ramzi Musallam, managing partner of New York-based Veritas Capital Management LLC, paid $33 million for a penthouse at Arte in 2020. But he hasn’t been able to enjoy the unit, according to the lawsuit filed in Miami-Dade Circuit Court.

A Delaware company owned by Musallam filed an amended complaint in December against SC 8955 LLC, an affiliate of Alex Sapir’s New York-based development firm, and the joint venture construction company Americaribe-Moriarty.

Musallam’s identity as the owner of the penthouse was previously unknown. He isn’t named in the filings, but he signed documents as the owner of the LLC, including for work done due to a mold infestation, records show.

His “use and enjoyment of the unit has been extremely limited as a result of significant defective conditions,” the complaint alleges. Those defective conditions include water intrusion caused by a defective mechanical system, glass and glazing systems that have continued to cause unsafe conditions and damage to the condo, according to the lawsuit, which was filed by Duane Morris attorneys Scott Kravetz and Michael Shulman.

Sapir, chairman of the Sapir Corp., developed Arte with his partner Giovanni Fasciano.

The 12-story, 16-unit building at 8955 Collins Avenue was designed by Antonio Citterio and Patricia Viel with Kobi Karp Architecture and Interior Design. It’s just south of the Four Seasons Residences and Hotel at the Surf Club. Residents and owners at Arte have included Ivanka Trump and Jared Kushner, private equity investor Alex Soltani, Honey co-founder George Ruan and sports and media investor David Abrams.

Musallam’s LLC paid cash for his 7,681-square-foot triplex penthouse, with five bedrooms, five bathrooms, two half-bathrooms and 6,260 square feet of terrace space, including a private rooftop pool. The sale set a record at the time at $4,300 per square foot.

Musallam’s Delaware LLC alleges the developer breached its contract and violated the Florida building code. The company also alleges negligence by the contractor.

“While we feel this lawsuit is meritless, the developer and contractor are in the process of reviewing the allegations…,” a spokesperson for the developer said in a statement. ”We are confident that the developer will be vindicated by the Court.”

Jason Gunther, one of the attorneys for Americaribe-Moriarty JV, declined to comment.

The lawsuit alleges Musallam’s company notified the developer of water leaks in February 2021, just three months after closing on the unit. That summer, Musallam’s company again asked that the developer make the necessary repairs.

“After months of discussions” with the developer, a representative for the owner “sent a detailed email to [the] developer citing water intrusion, mold, and excessive moisture, water damage to the drywall near the air conditioning vents, cracks on multiple diffusers due to faulty installation, poor installation of ceiling AC units, defective sliding glass doors (within the glass and glazing system),” the complaint alleges. “[The] developer did nothing.”

Eventually, the developer completed “very limited repairs” that the owner says “were merely Band-Aids and eventually failed,” the complaint states.

The lawsuit alleges that the Sapir affiliate was aware of “significant” defects, as early as the summer of 2019, that should have been disclosed to the owner.

It’s not the first complaint filed over construction at Arte. In December 2023, Mesiva CC LLC, the owner of unit 602 at Arte, sued the developer as well as the contractor over alleged defects, including an allegedly faulty mechanical system with leaky ductwork and ducts that were not insulated. The entity paid $12.8 million for the unit in May 2021.

That lawsuit, filed by the same law firm, is still ongoing. On Tuesday, a judge ruled in favor of the unit owner on the claims of breach of contract, negligence, breach of statutory warranty against the developer, and the negligence claim against Americaribe-Moriarty, said Kravetz, who is representing Mesiva CC LLC.