Fort Partners is set to proceed with the buyout of Harbor Towers, a condominium complex in West Palm Beach, after reaching a settlement with Related Ross. The legal dispute began in April when an affiliate of Related Ross filed for an injunction against Fort Partners.
The case was settled out of court on Friday, October 17, according to Glen Waldman, attorney for Fort Partners’ Nadim Ashi. Waldman confirmed that Fort Partners plans to continue with the condo termination process at Harbor Towers, which consists of two buildings and 61 units located at 3901 South Flagler Drive. The specific terms of the settlement were not disclosed.
Representatives from Related declined to comment on the matter.
The disagreement between the developers centered on control over Harbor Towers but involved three waterfront properties totaling about 4.3 acres across from Mar-a-Lago Club. The targeted sites include Harbor Towers; Southbridge, a 60-unit condominium at 3915 South Flagler Drive; and an apartment complex at 3907 South Flagler Drive and 3906 Washington Road.
Last year, both companies made offers for Southbridge owners, with Related’s $42 million offer being accepted. This amounts to roughly $700,000 per unit—substantially higher than market estimates for most units. Since December, records indicate that Related’s affiliate has acquired 17 units at Southbridge.
Meanwhile, WPB S Flagler Owner LLC—an affiliate of Fort Partners—purchased the nearby apartment complex at 3906 Washington Road and 3907 South Flagler Drive for $20 million last November.
In spring this year, affiliates from both firms began negotiating deals with owners at Harbor Towers. Waldman stated that Fort had secured agreements with most unit owners and gained control of the condo board by the time Related filed its suit in Palm Beach County Circuit Court seeking to block changes proposed by Fort Partners to the condominium declaration.
The conflict intensified in September when Related sought protective orders preventing depositions of Steve Ross and executive vice president Jordan Bargas. Attorneys for Fort accused Related of delaying under claims of ongoing settlement talks; within two weeks a settlement was reached.
Waldman noted his comfort representing Fort Partners because their buyout prices were considerably above assessed market values: “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.”
