Image courtesy of Eric Antoniou Photography

A 352-unit apartment complex built on a former Marina Bay nightclub property has been plagued with water leaks and mold since 2018, according to a lawsuit asking to have tenants relocated at the developers’ expense.

In 2018, Houston-based developer Hines completed the Meriel Marina Bay development, containing two 5-story buildings at the 5.8-acre former Ocean Club nightclub property. Property manager Bozzuto Management Co. also is named as a defendant in the lawsuit filed in Norfolk Superior Court.

The lawsuit, first reported by The Patriot Ledger, seeks to allow current tenants to terminate leases without paying a two-month rent penalty, and for developers to pay their relocation expenses.

A Meriel tenant, Dany Abouelkhier, claims in the class action complaint that the owners and managers failed to notify tenants of disruptive repairs to the buildings at 550 Victory Road when marketing leases. The damage including infiltration of water into the building envelopes was discovered in 2018, and led to leaks above units’ windows and mold growth.

In May 2021, the complex owners discovered structural damage to exterior walls where balconies are attached, but the original contractor refused to perform additional repairs, the lawsuit states. The owners subsequently replaced the facade and performed additional structural repairs and mold remediation work that is continuing.

“Defendants and their agents marketed and leased, and continued to market and lease, the property’s luxury apartments to tenants without disclosing these health and safety hazards or the need for a massive repair/remediation project with intrusive and disruptive construction to occur inside and outside the property,” attorneys Jonathan Sweet and Patrick Nelligan of Keches Law Group wrote in the complaint.

The plaintiff leased an apartment at Mariel in March 2021 and has suffered from “highly disruptive construction repair and remediation” work, the complaint states.

The lawsuit also asks that the property owners establish a fund for periodic mold testing, medical screening and damages, and to install high-performance air filters.

Bozzuto did not immediately respond to requests for comment.

In an email, a Hines spokesperson said the building’s ownership is “committed to ensuring the health and well-being of our residents.”

“We deny the allegations pled in this complaint that we did not disclose the extent of the repairs,” the company said. “Contrary to the claims made in the lawsuit: As the extensive repair plans have been finalized and scheduled, impacted residents have been notified; any interior mold identified by our experts was promptly remediated; [and] air testing has shown zero indication of the presence of toxic black mold.”

The complex marketed rents starting at $2,100 when it opened in 2018, and currently lists studios starting at $2,634.

In November 2021, the property owners sued two members of the original project team, Callahan Construction managers and architect Cube 3 Studio, in a Norfolk County civil suit. The repairs require recladding the entire building, according to a June 26 filing by Hines’ attorneys.

9:07 a.m. July 12, 2023: This story has been updated with comment from Hines.

Water-Damaged Marina Bay Project Prompts Legal Battles

by Steve Adams time to read: 2 min
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