According to a newly filed legal complaint, the Opera Tower Condominium Association, owners of Miami’s esteemed Opera Tower, has allowed unlawful short-term rentals for extended periods, causing increasing facility expenses and plummeting property values.

A Class Action Lawsuit 

On June 21, 2021 the lawsuit was filed in a Federal district court in Miami and seeks class action status. The Opera Tower is no stranger to lawsuits, and this move is simply the latest legal battle over unapproved 30-day or shorter leases at the 635-unit luxe skyscraper. Opera Tower sits in the heart of Miami’s Arts and Entertainment District at 1750 North Bayshore Drive. 

The plaintiff, Joseph Dispoto, bought a one-bedroom apartment in the Opera Tower in 2007. According to the lawsuit, up to 200 unit owners may be affected and the claim could be filed as a class action suit with damages exceeding $5 million. Defendants listed in the lawsuit are the Opera Tower Condominium Association, Opera Tower LLC, board directors Joseph Arthur, Dean Warhaft, and Michael Smith. 

The Allegations 

In the lawsuit, the Opera Tower Condominium Association and its board of directors are accused of breaking Miami zoning ordinance 21, which bans short-term leases in multifamily structures like the Opera Tower. According to the lawsuit, over 200 units in the complex are actively advertised and offered as short-term apartment rentals.

Opera Tower LLC is also accused of using a firm called Opera Suites and Marina to lease condominiums for 30 days or less through February 2020. The lawsuit claims that for a period of time, Opera Suites and Marina had a separate check-in counter at Opera Tower and extensively promoted its short-term rentals on numerous hotel reservation websites.

The Opera Tower Condominium Association admitted in a letter to unit owners that these short-term rentals had lowered the value of their units and the overall property. The complaint states that Opera Tower got a cease-and-desist letter from the city of Miami approximately a month following the letter being mailed out, ordering the Tower to discontinue all short-term rentals immediately. 

No Comment From the Opera Towers 

Dean Warhaft, Florida East Coast’s principal development manager and President of the Opera Tower Condominium Association, was contacted for a statement but declined to comment. At the time of writing, attorneys for Joseph Dispoto, Brian Warnick, and Janet Varnell, as well as the attorney for the Opera Tower Condominium Association, Jose Baloyra, did not reply to phone calls and emails seeking a statement. 

Get Help With Miami Real Estate Litigation Today 

If you are the owner of a unit in the Opera Tower complex, or want more information about how to protect yourself from property devaluation, contact Feinstein Real Estate Litigation & Business Law by calling 954-767-9662 (Fort Lauderdale), 561-981-6212 (Boca Raton), or 305-728-5267 (Miami).