Article Courtesy of The Tampa Bay Times
By Susan Taylor Martin
Published November 21, 2016
It has been called Tampa's "most prestigious building''
and "the most refined expression of living" in all of Tampa Bay. The views
are "stunning,'' the amenities "fit for a king and queen.''
But is the Plaza Harbour Island sinking?
The Plaza condo association is embroiled in a lawsuit alleging that the
20-story, 144-unit tower built in 2007 is plagued with problems. Among them:
exterior cracking that is the result of "significant subsidence concerns and
structural design deficiencies.''
Geotechnical
investigations found "very loose and very soft bay bottom
soils'' under the first-floor commercial units, according to
the suit filed in Hillsborough County Circuit Court. "These
soils are completely unsuitable to support the foundation
and, as a result, the soils have settled with resulting
movement and significant cracking of the walls, stucco and
structure.''
Now, in a tower where some units once sold for more than $2
million, damages caused by the alleged defects have included
"loss of use, relocation expenses, diminution in value,
increased insurance premiums (and) damage to other
property,'' the suit states.
The Plaza's problems emerge as the condo association of
Tampa Bay's tallest condo tower, the 36-story, 244-unit
Signature Place in downtown St. Petersburg, purportedly has
reached a settlement in a lawsuit alleging major
construction defects there. Both the Plaza and Signature
Place were built in the mid 2000s just as the housing boom
was going bust. |
|
Some condos in the 144-unit Plaza Harbour Island at
450 Knights Run Ave. in Tampa have sold for as much as $2 million.
|
Located across a channel from downtown Tampa, the island
from which Plaza Harbour Island takes its name originally was owned by the
Seaboard railroad and contained a phosphate terminal. Sold to a developer in
1979, the island has since been transformed into a largely residential
community where the Plaza at 450 Knights Run Ave. has reigned as the premier
condo tower.
Records show that concerns about soil subsidence go back at least two years.
In November 2014, a Lakeland company was hired to do "foundation
stabilization'' on Unit 707 in the townhouse portion of the Plaza.
Just as that work was finished the following spring, a Tampa law firm
representing the condo association sent a letter to the contractors and
others putting them on notice of "certain design and construction defects.''
In addition to the foundation and cracking issues, the letter said, there
were problems with the installation of aluminum railings and an inadequate
drainage system that caused water to damage planter beds and part of the
building.
The defects remained undiscovered for some time after the building was
completed — either because they were "latent'' or not easily recognized by
people "who lack special knowledge or training,'' according to the lawsuit
subsequently filed by the association.
Gail Bernucca, a Realtor and the association's president, said she could not
comment because of the suit. DPR Construction and Hardin Construction, which
share a Tampa office address, did not return calls.
Since the problems were found, Plaza owners have been required to "disclose
the existence of these conditions to any potential purchaser, thereby
limiting the marketability of his/her unit and reduce the fair market value
of the unit,'' the lawsuit says.
Multiple Listing records show that sales in the Plaza have slowed, though it
is difficult to determine how much prices have been affected.
Between January and November of last year, 17 units sold, including several
three-bedroom, three-bath units that went for more than $1 million.
So far this year, seven units have sold. The top price paid was $885,000 —
down $74,000 from the asking price — for a two-bedroom, two-bath unit in
September.
Another striking difference: More than half of the buyers last year got
mortgage loans. This year, all sales have been in cash.
"Therein lies the issue — getting financing when there's a pending
lawsuit,'' said Jeremiah Bicknese, an agent with Smith & Associates. "There
are a few banks that just don't want to flex on that.''
Bicknese said he has told Plaza sellers that he represents to
"over-disclose'' issues with the building in order to avoid future problems
with buyers.
"There's definitely an impact'' he said of the defects and litigation, ''but
fortunately with my clients (the buyers) were able to pay cash.''
Seven Plaza units currently are for sale, including the penthouse with an
asking price of nearly $2.4 million. It has been on the market for well over
a year.
All houses and other buildings eventually settle into their foundations,
construction experts say, and most pose little real danger to occupants. But
San Francisco's 58-story Millennium Tower, built about the same time as the
Plaza, has sunk 16 inches and tilted at least 2 inches, prompting a class-
action lawsuit and fears it could topple in an earthquake
This week, there were no signs from the street of any repairs that might be
under way at the Plaza, unlike at Signature Place in St. Petersburg. There,
scaffolding still covers part of the building two years after the condo
association sued over multiple defects, including improperly installed
stucco that could fly off in high winds.
Board members could not be reached for comment, but one Signature Place
owner, Scott Brandi, said he had been told the suit had been settled. He
hopes that he and other owners will get back at least some of the $8 million
in assessments they had to pay for repairs.
It could not be determined whether Plaza owners will also face special
assessments. Bicknese, who continues to show listings there, said regular
association fees are comparable to those in other Tampa condo towers and
that the Plaza remains a sought-after residence.
"It's such a lovely building that once people get the scope of it, even as
buyers they are not as nervous,'' he said. "The amenities are amazing —
there's valet service and 24-hour concierge service — and it's basically
like living in a five-star hotel, like living in a Ritz-Carlton.''
|