For namesake, we wont discuss the actual W Hotel name in this blog, because they are merely the operator of the building, and do not own any part of the land or major stake with the contractors.
Nearly 30 liens have been placed on the property (W Hotel) since its September debut and the threat of foreclosure looms over the 224-room hotel. The main issue is between the developer (Triyar Hospitality, a division of Los-Angeles based Triyar Companies, a commercial real-estate developer) and the general contractor (Hunt Construction Group of Scottsdale). Hunt, who recently built the Phoenix Convention Center Expansion and University of Phoenix Stadium, among many others, filed a lawsuit in November claiming they are owed an additional $21.4 million in “extra work”. Triyar quickly responded with a civil lawsuit against Hunt claiming their work was “poor and defective”, they went over budget by $57 million and delayed the hotel opening by more than a year. More recently, Hunt filed a counterclaim denying the accusations made by Triyar and provided some details on the initial lawsuit they filed for “extra work”. From Hunt’s story, they claim Triyar made over 200 revisions to the original plan, the latest in the summer only 2 months before it opened. As a result, the general contractor claimed they did an additional $21.4 million in extra costs “at the special insistent request of” Triyar.
It seems as though the developer and general contractor have not been getting along for some time and unfortunately for the developer, Hunt is not the only company seeking legal help to get paid. A few other subcontractors claim they haven’t been paid for work either, in amounts ranging from $65,000 to several hundred thousand.
Whether or not these accusations by Hunt and Triyar are true has yet to be answered, and unless they go deep into costly legal battles we won’t know. At this time, it might be best for both sides to come to an agreement, as spending millions of dollars in court costs is not a viable economic option.
Triyar Companies owns a lot of land in the northeastern area of Old Town Scottsdale. With their recently completed office on the NEC of Scottsdale and Camelback Roads, they have a clear view of their projects on the second floor above American Apparel and Sprinkles Cupcakes. They also own several Scottsdale nightclubs such as Axis/Radius and Myst and were planning to redevelop a large portion of those blocks into a massive, mixed-use entertainment village. Plans are on hold for that project.
If you didn’t know already, there are 18 luxury condomiunium units on the top floors of the W, titled the Residences, ranging in size from 1,000 to 2,500 square feet. Recent prices have been rumored at $1000 per square foot at minimum and up to around $1,200 per square foot for the best units. This puts these condos as some of the priciest in the Valley, with all 18 over $1 million. For you high-end buyers who are interested in the penthouses, carefully watch how this case is resolved, because if you remember the counterclaim made by the developer, you would know they claimed the contractor did “poor and defective” work. It is unknown whether or not this is true, and if true to what extent is also unknown, so just keep a close eye on the details of the legal issue, as you might find some vital information regarding your future home. 
2 Comments so far (Add 1 more)