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Insurer Pays Miami Condo Developer Far Less Than Firm Expected
(SUNNY ISLES BEACH, FL) -- It was another glum day for Fortune International.
One of South Florida's largest condo developers, privately held Fortune expected to receive about $4.5 million from its insurance company in a federal court lawsuit in Miami.
The suit describes a construction delay caused by a Feb. 20, 2008 fire at the 52-story, 258-unit Jade Beach luxury condominium community in Sunny Isles Beach, FL.
Instead, Allianz Global Risk Insurance Co. of California, paid Fortune $522,158 or $43,513 per day for 12 days of delay caused by the fire on the 39th floor at the construction site, 17001 Collins Ave.
However, Fortune's subsidiary, Fortune Beach LLC, alleges in its Sept. 25, 2009 complaint the blaze caused a 104-day delay. Based on Allianz's per-day payment, that would total $4.53 million for the 104 days of work stoppage. Both sides previously agreed on the per-day amount.
Allianz, however, calculates 62 days of the delay resulted from "non-fire-related problems." Another 30 days were attributed to a waiting period written into the contract, so Allianz also deducted that period from Fortune's alleged 104-day claim.
The total construction delay time is the crux of the dispute. The trial continues in Miami federal court.
Edgardo DeFortuna
The company posted $563 million in sales for 2007, according to the South Florida Business Journal's 2009 Book of Lists. That performance made Fortune International the third largest condo developer in South Florida, behind Related Group and Lennar Corp.
In a fact sheet not linked to the lawsuit, Ana Maria Gil, a project manager for Fortune International, placed the estimated construction cost of Jade Beach at $138 million and its estimated market value at $230 million when the project was first planned in 2005.
Please see related articles:
( "Fortune International Takes Big Hits on 2 South Florida Real Estate Deals, Sept. 7, 2009")
("Argentina Developer Pays $78M for Former Sonesta Beach Resort Site in Key Biscayne, FL, Sept. 29, 2009)
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