B
illionaire Ramzi Musallam, managing partner of Veritas Capital Management LLC, is suing the developer of Arte, a luxury oceanfront condo building in Surfside, over alleged construction defects. The lawsuit, filed by Duane Morris attorneys Scott Kravetz and Michael Shulman, claims that Musallam's use and enjoyment of his $33 million penthouse has been severely limited due to defective conditions, including water intrusion caused by a faulty mechanical system.

    Musallam's Delaware company alleges that the developer, SC 8955 LLC, an affiliate of Alex Sapir's New York-based development firm, breached its contract and violated the Florida building code. The complaint also accuses the contractor, Americaribe-Moriarty JV, of negligence. Musallam's company paid cash for the 7,681-square-foot triplex penthouse in 2020, setting a record at $4,300 per square foot.

    The lawsuit alleges that the developer was aware of significant defects as early as summer 2019 but failed to disclose them to the owner. The complaint also claims that the developer completed only limited repairs, which eventually failed. This is not the first complaint filed over construction at Arte; another unit owner sued the developer and contractor in December 2023 over alleged defects.

    A spokesperson for the developer stated that they feel the lawsuit is meritless and are confident that the court will vindicate them. The developer and contractor are reviewing the allegations, but Jason Gunther, an attorney for Americaribe-Moriarty JV, declined to comment.