Beacon Lofts homeowners obtain $1M settlement in construction defect case against builders

Downtown LA is seeing a string of poorly-constructed buildings, with Beacon Lofts as an example. (Wikimedia,

After five months of mediation efforts facilitated by Ross Hart of Arbitration Mediation Conciliation Center, the Beacon Lofts Association has obtained $1 million settlement for faulty construction and building standard code violations by Peklar Pilavjian and associates.

Located in the Arts District of Los Angeles, the adaptive reuse condominium project was developed by Alameda & Fourth, LLC with SESA Construction as the general contractor. Builder Pilavjian, known as co-owner of St. Vincent Jewelry Center, purchased a five-story building that formerly served as a storage facility and jewelery manufacturing company

Pre-construction, Pilavjian and his associates envisioned turning the 1923 building into a development with live-in residential units. Construction commenced in 2005 but faced a delay in 2011 due to the economic recession. Construction resumed later in 2011 and was completed in 2013 with the concrete building fully-converted into a 6-story condominium with 53 residential units.

However, after four years, the building displayed defect signs during the first Southern California wet winter in recent years. For a full evaluation of the project and to address the faulty construction issue, the Beacon Lofts board of directors contacted The Miller Law Firm.

After discovering various sub-standard performance issues such as water intrusion at openings like doors and windows, excessive condensation, leaking and corroded plumbing system, and cracked foundation, siding and pavement, the builder was served with a Notice of Action under Senate Bill 800.

Without filing a formal complaint, the homeowners association reached an amicable settlement with the builder. Since the builder’s insurance policy only has a limited coverage, The Miller Law Firm recovered additional funds by attaching a builder-owned unit to the $1 million settlement. Money acquired through the settlement will be used for the building’s repairs.

According to The Miller Law Firm senior partner Rachel M. Miller, the issue at Beacon Lofts follows the recent trend of poor construction in the Los Angeles area. “Our firm has recovered in excess of $37 million for various Los Angeles homeowner associations in the last five years alone,” she said.


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