Marquis Miami’s condo association is suing Madison Realty Capital over alleged structural neglect and financial mismanagement at the 67-story downtown condo-hotel. The association wants a judge to appoint a receiver, turning a private ownership dispute into a court fight over who will keep the tower running and pay for repairs.
The lawsuit names Madison, its affiliates, entities tied to former owner CGI Merchant Group, Think Hospitality and the Marquis master association as defendants. The Real Deal reports that Marquis was completed in 2009 and includes 292 condos, five townhomes and a 129-key hotel component occupying the building’s first 14 floors.
The complaint lists a long menu of alleged problems: concrete spalling and cracking, exposed corroded reinforcing steel, exposed post-tension tendons, chronic water intrusion, deteriorated waterproofing and leaking mechanical and plumbing infrastructure. It also alleges that HVAC and water-piping repairs were left incomplete, while Madison diverted unit owners’ dues and failed to perform required maintenance.
A Condo-Hotel Fight With An $8 Million Backstory
The dispute follows a major ownership shake-up in 2024, when Madison took control of the hotel side after CGI Merchant Group lost the property through a UCC foreclosure process. Connect CRE reported that the hotel was later transferred to a Madison affiliate through a deed-in-lieu transaction valued at $62 million.
The association’s lawsuit says a prior construction-defects settlement in 2019 estimated the cost of repairs at roughly $8 million. Owners have since hired experts to assess the tower, but the association says the clock is working against them: every year that major work is delayed, the eventual bill can grow larger.
Florida’s Condo Rules Add Pressure To The Dispute
Marquis is also operating in a state where condo boards face tougher inspection and reserve requirements after the Surfside collapse. The Florida Department of Business and Professional Regulation says qualifying residential buildings must complete structural integrity reserve studies, and associations may need to levy assessments, obtain loans or use other financing if reserves do not cover major repairs. DBPR’s guidance also says repairs identified through a phase-two milestone inspection generally must begin within 365 days.
The complaint describes more immediate operational headaches, including a hotel owner controlled by Madison allegedly failing to pay $536,890 in invoices. A separate fight over elevator air handlers has reportedly left elevators hot and humid, adding an unusually sweaty detail to a case already focused on concrete, water and money.
Condo association attorneys David Haber and Ariella Gutman are asking the court to untangle the overlapping ownership and management structure. Haber told The Real Deal that the association’s “hands are tied” and that it needs a judge to intervene; the allegations remain unproven, and the court has not yet ruled on the receiver request.
