Before building collapse, $9M+ in repairs needed

The Associated Press ^ | June 28, 2021 | By CURT ANDERSON and BERNARD CONDON

[Oldeconomybuyer]

Owners of units in a Florida oceanfront condo building that collapsed with deadly consequences were just days away from a deadline to start making steep payments toward more than $9 million in major repairs that had been recommended nearly three years earlier.

That cost estimate, from the Morabito Consultants engineering firm in 2018, meant owners at Champlain Towers South were facing payments of anywhere from $80,000 for a one-bedroom unit to $330,000 or so for a penthouse, to be paid all at once or in installments. Their first deadline was July 1.

One resident whose apartment was spared, Adalberto Aguero, had just taken out a loan to cover his $80,000 bill.

“I figured I would pay it off after they fixed the building. I didn’t want to pay it off before because you never know,” said Aguero, adding that he pulled paperwork to make the installment payments a day after Thursday’s collapse. “I said cancel everything.”

[Oldeconomybuyer]

[noiseman]

They should have just condemned the building and walked away. No building of that size and age would have been worth such an exorbitant amount to repair.

[polymuser]

Does the sister condo also need such repairs?

https://freerepublic.com/focus/chat/3971817/posts?page=1

[dinodino]

This is Miami-area beachfront...figuring the average market value per unit was $550k (some higher, the lowest was $400k), and the building had 135 units, puts market value at $70MM or so. Definitely worth spending $13MM on repairs.

[dinodino]

This is Miami-area beachfront...figuring the average market value per unit was $550k (some higher, the lowest was $400k), and the building had 135 units, puts market value at $70MM or so. Definitely worth spending $13MM on repairs.

[gcparent]

That’s a huge special assessment.

[dinodino]

Yep, sure is, but if you choose to live in a condominium, you should be prepared for special assessments...especially if it’s an oceanfront tower.

[gcparent]

I’ve lived in condo and co ops. Special assessments were rare and were for new roofs etc not for structural damage.

[dinodino]

Yes, but were the condos you were in seaside towers? I’m familiar with this market and you can expect to get hit hard when it’s time to bring the building back up to snuff.

[ScubaDiver]

Yep. Also, no building that age and that size ever gets repaired on budget. If the contractors quote $9M, it's probably closer to $11M or $12M.

[Kartographer]

How much are they worth now?

[dinodino]

Prices in post #5 are current.

[HollyB]

From an email noted in this article
“ A few months later, a board member wrote to Prieto that workers next door were digging “too close to our property, and we have concerns regarding the structure of our building.”

[existentially_kuffer]

Was there any finding of a sinkhole?

[EVO X]

There was essentially a man made sink hole. The pool deck collapsed next to the part building that collapsed first. There was a condo owner on the phone with her husband when it happened.

[Pikachu_Dad]

Don’t see many support beams in the exposed structure.

[mikey_hates_everything]

I am in an oceanfront condo in SC and the association performs coating and waterproofing on the exterior, rooftop and balconies every 7-10 years. Inspects every 2 or 3 years and spot repairs if necessary. The building is 21 years old and is 18 floors. We had one special assessment ($5000 over a year, extra $420/mo) to cover crazy insurance hikes after Katrina, I believe. Otherwise, the condo fee is about $940/mo for a 4 bedroom. The association has been very good about maintaining roof, waterproofing, pool repair and elevator reserves. I see this Florida thing like an airplane crash. There will be more awareness toward building maintenance and will hopefully prevent other disasters like this.

[proxy_user]

I lived in a coop in NYC - unlike a condo, we could take out debt against the building, and at very good rates. Naturally, the interest had to be included in the monthly payments, but it was not a big expense. I believe we carried about $15 million in debt on our 450-unit building.

I’ll bet all the condo owners in Florida will suddenly become much more willing to pay up.

[existentially_kuffer]

Tks for the responce. Was thinking more natural vs man-made. Techniques back then have improved today for better assessment prior to building.

[1Old Pro]

That cost estimate, from the Morabito Consultants engineering firm in 2018, meant owners at Champlain Towers South were facing payments of anywhere from $80,000 for a one-bedroom unit to $330,000 or so for a penthouse, to be paid all at once or in installments. Their first deadline was July 1.

Yep, Condo buyers beware.