Two Roads Development has reached a dead end in its efforts to redevelop the Biscayne 21 condominium site in Miami’s Edgewater neighborhood. The developer, led by Taylor Collins and Reid Boren, began acquiring units at the aging condo building in 2022. After gaining control of the condo association, Two Roads moved to amend the building’s termination rules, lowering the required consent for dissolution from unanimous approval to an 80 percent threshold. This step was intended to pave the way for demolishing the building and launching sales for a new Edition Residences project.
The acquisition was backed by significant financing, including a $45 million mezzanine loan from Lionheart Strategic Management LLC and a $105 million senior mortgage from Bank OZK. Following these moves, residents were compelled to vacate and the building became uninhabitable.
A group of holdout owners responded with a lawsuit against both Two Roads and the developer-controlled association. The legal dispute advanced through Florida’s court system. Earlier this year, the Third District Court of Appeal sided with the holdout owners, ruling that any change to termination procedures required unanimous consent as stated in the original condo declaration. This invalidated Two Roads’ amendment.
The developer attempted to escalate the case to Florida’s Supreme Court, but the court declined to review it. With no further avenues for appeal, Two Roads now faces limited options.
Legal experts suggest that Two Roads could either negotiate a settlement with holdout owners—potentially involving a new equity partner to recapitalize—or be compelled to repair and reopen Biscayne 21 as a rental-heavy condominium building. David Podein, an attorney at Haber Law not involved in the case, commented: “At the end of the day it is an extremely prime piece of waterfront property.”
Glen Waldman, attorney for the holdout owners, indicated that lenders will play a crucial role in resolving next steps. Waldman plans to seek more than $100 million in damages from Two Roads when proceedings return to state court. He stated: “Two Roads is in a terrible position and they deserve it. They’ve destroyed [my clients] homes with no right. Now we go after them like there’s no tomorrow.”
In other South Florida real estate news:
– Developer Mark Pulte sold an oceanfront mansion at 701 South Ocean Boulevard in Delray Beach for $59 million. The property spans 14,000 square feet and was completed two years ago.
– Cofe Properties acquired two warehouses—Milam Dairy Commerce Center I and II—in Medley for $26.8 million from Prudence Investments.
– Developer Armando Codina and his wife listed their waterfront Coral Gables estate for $45 million as they prepare to move into a luxury apartment developed by Codina Partners.
– Miami-Dade commissioners have approved legislation designed to make community composting easier and less expensive. The move aims to address landfill capacity issues and reduce methane emissions by diverting organic waste from landfills.
For questions about how Nahla Capital will proceed with the Raleigh Miami Beach project after taking over from Michael Shvo, readers are invited to contact kk@therealdeal.com.
