Z Capital Group is poised to lose significant power at the Carillon Miami Wellness Resort. Miami-Dade Circuit Judge Michael Hanzman on Monday ordered that the portion of the Carillon master declaration that vests authority in Z Capital over common areas is invalid and illegal.

The oceanfront Carillon, at 6801 Collins Avenue in Miami Beach, consists of the North, Central, and South towers, each with its own condo association. Together the complex has 580 units. James Zenni Jr.’s New York-based Z Capital owns, maintains, levies assessments for, and otherwise controls the rest of the development, including the spa, pools, restaurant, and roughly 70 condo-hotel units in the Central Tower.

Judge: James Zenni Jr.’s firm has so much control over common areas that residents are reduced to “hotel guests”

The latest ruling surrounds Z Capital’s ownership and control over those areas, such as the hallways, elevators, heating, ventilation and air conditioning, roofs, and all other common areas — essentially everything except the condo units.

This level of control of common areas is an “overreach” that allows Z Capital to have power over the portions of the property that, under the Florida Condominium Act, should be collectively controlled by the condo owners, Hanzman wrote in his order.

“Unit owners … have no say in how the condominium they reside in will be operated. They cannot vote to replace or refurbish the exteriors of their buildings, the lobbies of their buildings, the components that provide utilities to their buildings, or any other facilities outside the four corners of their units,” Hanzman wrote. “The condominium owners are … nothing other than long-term hotel guests.”

By Lidia Dinkova for www.therealdeal.com
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