Eichner, Suffolk go to war over Bay Harbor Island luxury condo project

Ian Bruce Eichner’s Continuum Company sued Suffolk Construction, claiming sloppy management, runaway costs and shoddy work at the luxury La Baia South, filing the complaint less than a month after the contractor alleged it hasn’t been paid millions of dollars for the project.

The dueling allegations mark an all-out war between the developer and general contractor over the luxury 68-unit project. The eight-story La Baia South at 9201 East Bay Harbor Drive is one of Continuum’s two boutique waterfront La Baia condos in Bay Harbor Islands. The firm is also developing the eight-story, 57-unit La Baia North at 9481 East Bay Harbor Drive. 

The development firm, with offices in New York and North Bay Village, is led by Eichner and his daughter Alexandra Eichner. 

Continuum Company, through its affiliate Bay Harbor Islands Property Owner I, says Boston-based Suffolk “grossly mismanaged” the project, according to the complaint. La Baia Condominium Association, which is led by Continuum, also is a plaintiff in the suit filed in Miami-Dade Circuit Court last week. 

Continuum and Suffolk signed an agreement for La Baia South in 2022, first for the foundation and then adding the construction of the building. The contract was for a guaranteed maximum price of $68.6 million. Since then, costs have ballooned by $2.6 million to $71.1 million due to Suffolk’s failures, the suit says. 

During construction, Suffolk understaffed the site, routinely cycled through project executives, assigned staff to La Baia who only had “novice-level experience,” and didn’t purchase enough materials, including to replace backsplashes damaged during construction, according to the complaint. Suffolk has essentially abandoned the project, leaving only a skeleton crew on site, it says. 

The complaint depicts a project that spiraled with 567 revisions to the development plans by Suffolk, which allegedly provided no backup documents to justify the changes. Under its agreement, Suffolk was required to substantially complete the project in June of last year but missed this goal by 198 days, obtaining a temporary occupancy certificate in January, according to the complaint. 

As of the complaint filing date, the project remained unfinished with no final occupancy certificate, the complaint claims. Eight permits are pending because city inspectors refused to sign off due to issues with the building’s waterproofing, fire alarms and windows and doors, which Suffolk has refused to address, the complaint says. The project also has leaks and possibly mold in units and common areas, according to the complaint. 

But Suffolk says Continuum is the one to blame for any delays and the one that continues to issue directives for construction changes, according to the contractor’s letters attached to the complaint. Early last month, the contractor sent a salvo of letters that included allegations that Continuum defaulted on the agreement and hasn’t paid millions of dollars owed to Suffolk. It also has a $4.5 million lien filed last month on the project, records show.  

In its July 1 notice of default and intent to stop work, Suffolk claimed it’s owed $4.7 million under its contract balance and $1.7 million for extensions due to Continuum’s delays. Suffolk said it’s also owed $310,000 because it agreed to provide a discount for this amount for La Baia South but only if Suffolk is hired to build La Baia North, which didn’t happen, according to the letter. 

Suffolk sent a separate letter on July 1 warning it could pursue members, officers and shareholders of the ownership entity personally, citing a claim of more than $6.5 million.

In a July 8 notice to the project lender, Fortress Investment Group, Suffolk claimed it’s owed $4.8 million under its contract, $1.4 million for change orders and $1.7 million for project delays. 

Continuum’s lawsuit seizes on Suffolk’s three letters each claiming a different amount owed, calling the discrepancy “inconsistent and irreconcilable,” according to the complaint. 

Continuum pushed back on Suffolk’s allegations that delays were the developer’s fault, saying Suffolk’s filings minimize or omit its own faults that caused delays. For example, the project required a roof replacement due to Suffolk’s alleged mismanagement. Suffolk also installed a Florida Power & Light transformer outside the property line, causing a monthslong delay, the complaint says. 

“Suffolk inexplicably blamed the design professionals while, consistent with Suffolk’s pattern of blame shifting, it continued to disregard its own clear and unambiguous fault,” the suit says.   

Even if the developer and contractor are at odds, Suffolk has to keep working, Continuum argued in its complaint. Yet, Suffolk repeatedly threatened to stop work. 

The suit lists counts for breach of contract, breach of statutory warranty, negligence and fraudulent lien. 

Eichner and his attorneys didn’t respond to a request for comment. Suffolk declined to comment. 

La Baia South has been pre-sold since at least 2024, Eichner told The Real Deal at the time, when he scored a $90 million construction loan. Sales for the project, which has one-bedroom to four-bedroom condos ranging from 1,125 square feet to 2,500 square feet, launched in 2021, with asking prices from just over $800,000 to $3.5 million. 

La Baia North sales launched in 2022, with prices starting at $1.3 million. 

The tiff with Suffolk isn’t the only spat over La Baia South, with several subcontractors claiming they haven’t been paid, though generally liens are common for projects under construction. 

Records show that just this month, East Coast Flooring & Interiors filed a $563,811 lien; foundation waterproofing company Biscayne Construction filed a $446,082 lien; and Mousseri Painting filed a $177,440 lien on the property. 

Elsewhere, Continuum was hit with a lawsuit in October by lender CW Investment Advisers, alleging it’s owed more than half a million dollars for fees tied to a negotiated loan that Continuum walked away from at the last minute. In court filings, Continuum denied wrongdoing and countersued CW in January, alleging the lender was the one who delayed the deal and only wanted to reap excessive fees, according to the developer’s counterclaim. 

The debt was tied to the buyout of a North Miami condo building, which Continuum plans to replace with a 20-story, 262-unit wellness-focused waterfront condo. 

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