Investor seeks $50M for allegedly botched Ocean Drive hotel repairs

Allied Partners founder Eric Hadar and The Savoy Hotel & Beach Club at 425 Ocean Drive (Google Maps, Getty) via www.therealdeal.com
Allied Partners founder Eric Hadar and The Savoy Hotel & Beach Club at 425 Ocean Drive (Google Maps, Getty) via www.therealdeal.com

Allied Partners is seeking $50 million from an architect and an engineer who allegedly tore down portions of a historic Miami Beach hotel without the owner’s authorization.

In two separate lawsuits filed in Miami-Dade Circuit Court last month, an Allied entity sued Kevin Gore, an architect based in Palisades Park, New Jersey, and Miami-based engineer Elvis Torres and his company, Ortus Engineering.

Allied, a New York-based real estate investment firm founded by Eric Hadar, owns The Savoy Hotel & Beach Club at 425 and 455 Ocean Drive in the city’s South of Fifth neighborhood. In 2005, Allied paid $28 million for the oceanfront property, which consists of two Art Deco buildings completed in 1937 and 1941, records show.

New York-based firm alleges architect and engineer rammed through unauthorized demolition work at The Savoy Hotel & Beach Club

Hadar, Gore, and attorneys representing Allied and the architect declined to comment. Torres did not respond to a request for comment.

In 2017, Hurricane Irma damaged the two buildings, known as Arlington East and Arlington West, the complaints state. The Category 4 storm caused significant damage to Arlington East, which has most of the Savoy’s 75 rooms. Arlington West, which houses the hotel kitchen, restaurant, cafe, event space, and 31 rooms, was damaged, but to a lesser extent, the complaints state.

Allied has been unable to reopen Arlington East until the building is restored to its prior state, and the restaurant and event space at Arlington West also remained closed the lawsuit states. A current estimate shows it will cost nearly $30 million to restore the two buildings to their original state before they were demolished. The lawsuits state the Savoy Hotel also suffered $20 million in lost profits.

By Francisco Alvarado for: www.therealdeal.com
Read the full story at: www.therealdeal.com

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