The developer and dozens of contractors behind an exclusive residential enclave in Central Florida settled shoddy construction claims for $26.5 million.
It’s not the largest construction-defect settlement in Florida, but at $2.7 million per unit across the 10 townhomes at Park Hill in Winter Park, it may be among the priciest on a per-door basis.
The complex, consisting of two three-story buildings completed in 2019 across the street from an expansive park, is a bit of a misfit in Florida, forgoing the state’s traditional designs for stone and brick façades. It’s on the southwest corner of Whipple Avenue and North Park Avenue in Winter Park, a city near Orlando.
“They are not like anything you would see in the state of Florida, including Palm Beach,” said Robert Simon, the attorney who represented the homeowners. He likened the buildings to European or West Village brownstone walk-ups.
The homes sold for $1 million to over $3 million, according to records.
The Park Hill owners association and all 10 unit owners filed a construction defects suit in 2023 against developer Hill Gray Seven, led by Andrew Hill and other members of the Hill family, as well as the architect, two general contractors that worked on the complex and four subcontractors. The suit alleged the complex wasn’t built up to code or construction documents.
Since then, the general contractors and other defendants filed multiple crossclaims against other subcontractors and consultants.
Defective waterproofing and improper installation of exterior stone and masonry veneers were major problems, according to the lawsuit. The builders at one point tried repairs by drilling in anchors but pierced through the water barrier, the Park Hill association claimed.
Installation of incorrectly sized heating, ventilation and air conditioning systems and duct work also were alleged.
By 2021, homeowners started noticing condensation, indoor humidity and signs of water seepage, according to the unit owners’ attorneys at law firm Pursiano, which retained its own building experts to investigate.
In all, over 50 firms settled the case in May, two months before the scheduled trial, according to Simon.
The $26.5 million has been paid, including through insurers for the project builders, but how much the developer and each contractor and subcontractor paid is confidential, he said.
The builders that settled did so with no admission of wrongdoing, saying the claimed defects are disputed.
“The settlement amount relates to the complicated nature of the repairs,” Simon said. “The materials, yes, they are expensive. But the crux of the repairs is removing all of those materials, many of which were installed incorrectly, and replacing the waterproofing efforts behind those materials.”
Some of the firms working on the project didn’t have experience developing high-end communities such as Park Hill, Simon said.
“They kind of bit off more than they could chew, in the sense that you don’t start building something this complicated as your first foray in this type of construction,” he said.
Court records show trouble at Park Hill started early on.
Before homeowners first sued, litigation started between the developer and a general contractor in 2018.
Hill Gray Seven sued Oviedo-based RLH Construction, alleging it mismanaged and understaffed the development, and missed completion deadlines. The developer hired a consultant during construction to analyze the installed precast concrete panels, which showed RLH improperly used masonry cement bed mortar that allowed air in, according to the homeowners’ complaint. Yet, the developer didn’t disclose this to homebuyers, and repairs were ineffective, the suit says.
About half of the units weren’t built by deadline, which meant Hill Gray Seven risked would-be buyers who had put in deposits pulling out of contracts, the complaint says. Had that happened, the developer was at risk of the lender accelerating the $8 million construction loan balance.
Hill Gray Seven and RLH Construction denied any wrongdoing and construction defects, with RLH ultimately turning around to sue subcontractors, including a terraces and balconies roofing contractor.
RLH Construction completed five townhomes in 2018 under a $13.8 million contract, which was eventually amended and increased by $1.9 million, records show. Cadell Construction was hired to complete the remaining townhomes, finishing construction in 2019, according to court filings.
Attorneys for Hill Gray Seven, RLH and Cadell didn’t return requests for comment. Hill Gray Seven didn’t return requests for comment.
Construction defects lawsuits are common across Florida. In one of the largest known settlements, homeowners across the state obtained a $78.7 million settlement in a case alleging improper stucco installation in roughly 23,000 homes by the developer, Pulte Group.
In some of the pending lawsuits, the Seminole Tribe of Florida sued Miami-based homebuilder Lennar last year, accusing it of building 465 defective homes on tribal land.
The condo association for the waterfront Aston Martin Residences in downtown Miami sued developer G&G Business Developments, the general contractor and other companies in April, claiming improperly sloped balconies, concrete cracking and spalling, unsealed holes, exposed reinforcement bars and waterproofing issues.
