Fort Partners will continue with its plan to buy out a West Palm Beach condominium complex after reaching a settlement with Related Ross, according to information obtained by The Real Deal.
The dispute began in April when an affiliate of Related Ross filed for an injunction. The conflict ended on Friday, October 17, after Steve Ross’ Related and Nadim Ashi’s Fort Partners settled the matter outside of court. Glen Waldman, attorney for Ashi, confirmed the settlement but did not disclose its terms. Waldman stated that Fort Partners intends to proceed with terminating the condominium at Harbor Towers, which is a two-acre property consisting of two buildings and 61 units located at 3901 South Flagler Drive.
Representatives from Related did not provide comments when asked.
Although control over Harbor Towers was the focus of the legal dispute, both developers have interests in three waterfront properties totaling about 4.3 acres across from Mar-a-Lago Club. These include Harbor Towers, Southbridge—a 60-unit condominium at 3915 South Flagler Drive—and a multifamily complex at 3907 South Flagler Drive and 3906 Washington Road.
Last year, both companies made offers to purchase units at Southbridge. Related’s $42 million offer was accepted by owners, equating to roughly $700,000 per unit despite most being valued around $200,000 by local authorities. Since December, records indicate that Related affiliate Southbridge Acquisitions LLC has acquired 17 units; plans for acquiring remaining units are unclear.
In November, WPB S Flagler Owner LLC—an affiliate of Ashi—purchased the nearby apartment complex at 3906 Washington Road and 3907 South Flagler Drive for $20 million.
This spring saw affiliates from both companies making competing agreements with Harbor Towers owners. According to Waldman, Fort Partners had secured deals with most unit owners and gained control of the condo board before Related filed its lawsuit seeking to prevent changes to the condominium declaration in Palm Beach County Circuit Court. In September, tensions increased as Related sought protective orders against depositions involving Steve Ross and executive vice president Jordan Bargas; Fort’s attorneys accused them of delaying under pretenses of negotiation talks. A settlement was reached two weeks later.
Waldman explained his willingness to represent Fort Partners in this developer-led buyout because they offered significantly higher prices than market value for the units involved: “The amount of money being offered was significantly in excess of what [the units] were worth,” he said. “These owners were making so much money, there are no losers here.”
