Fort Partners is set to move forward with its planned 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 to block changes to the condominium declaration. The two parties settled out of court on October 17, according to Glen Waldman, attorney for Fort Partners’ Nadim Ashi. Details of the settlement were not disclosed.
The conflict centered on control over Harbor Towers, a 2-acre property with two buildings and 61 units at 3901 South Flagler Drive. However, both developers have interests in three waterfront sites totaling nearly 4.3 acres across from Mar-a-Lago Club.
Besides Harbor Towers, the targeted properties include Southbridge at 3915 South Flagler Drive and a multifamily complex at 3907 South Flagler Drive and 3906 Washington Road. Last year, both companies made offers for Southbridge owners; Related’s $42 million bid was accepted, equating to about $700,000 per unit—well above the estimated market value of most units.
Records indicate that since December, Related’s affiliate has closed on 17 units at Southbridge. It remains uncertain when or if they will close on the remaining units.
In November, WPB S Flagler Owner LLC—an affiliate of Ashi—purchased the adjacent apartment complex for $20 million.
This spring saw competing deals between affiliates of Related and Fort Partners for Harbor Towers units. According to Waldman, Fort had secured agreements with most unit owners and gained control of the condo board by the time Related filed suit in Palm Beach County Circuit Court seeking an injunction.
The legal proceedings intensified in September when Related sought protective orders against depositions involving Steve Ross and executive vice president Jordan Bargas. Fort’s attorneys accused Related of delaying under pretense of ongoing settlement discussions before both sides reached an agreement two weeks later.
Waldman commented on his role representing Fort Partners: “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.”
Representatives for Related did not respond to requests for comment.
